5k only mana cukup :-)

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Added on August 20, 2012, 7:43 pmIt much depends on whether the company is able to continue to provide the coverage, even if we are bed-ridden (due to an accident, or dread disease like Stroke) and does not turn up for work for 6 mths to a year or for life. If the company can guarantee to cover you even if we are not able to work, then no need to buy personal insurance.

However, one day you'll retire at old age, that's when you lose all company benefits

Provided that you're still healthy at 55 and the insurance company can still cover you without any extra premium. It is advisable to get one while you're still young and healthy so as to build up the cash value. The cash value is savings towards taking care of the medical insurance charges (which will go up in older age) in order to maintain the policy.

Insurance charge will go up by age irrespective of when you get it. It is like an old car over 10 years with 100% loading. The insurance charge hike is mostly evident above the age of 65.

For example when you are age 30, and paying RM 150/mth is sufficient to cover the insurance charges of RM 1500/year. However at age 65, you may still be paying RM 150/mth (if you don't upgrade the policy, but realistically please review the policy every 5 years to curb medical inflation) but the insurance charges had gone up to RM 5K/annum.

The variance of the premium will be deducted from the cash value that you've accumulated throughout the 35 years. How long the policy can last depends on how the funds perform.

Do note that some agents will say that ILP have 'savings' and you can withdraw at anytime. This is just sales talk. It is true that you can withdraw the cash values, but who is going to pay for the insurance premium at older age when we are retired with no income and especially when the insurance charges goes up exponentially?

If there is a major market crash THERE IS A RISK that the policy may lapse and lose all the coverage if there is insufficient funds in the policy unless you do a TOP UP.

This post has been edited by roystevenung: Aug 20 2012, 07:51 PM

Thanks for a heart warming sharing QuickSilverV3. May I have your permission to put your story up on my blog?

Thank you my friend, it has been posted to my blog.

1. How many friends/family do you have? 100? 200? 300? 400? What happens after this ran out? Close shop?

2. Will all of them buy from you because you're their friends/relative --> No

3. Will our friends hate us because we are insurance agents? --> It depends on whether you're there to help them or whether you're there just for the business. If help them, no, if promo only, most probably YES. Understanding their needs and just let them know you're in this business.

When they are ready and if you keep in contact with them on a regular basis not for insurance ... i'm sure they will buy from you. Trust is something you need to earn...

Cold calling is a must if you want to stay long in this business.

Just pretty much a desk job executive unless you advances yourself to management level. However, I do know some desk job executives who refer people to agents, to earn extra as at times, there are walk in customers who wanted to buy but don't of any agent.

No problem, and I could be that agent should you decide to join Prudential :-)