If I'm not mistaken, nowadays there are some insurance products giving more return compared to the conventional life insurance. I think education insurance should be one of them. The fund can be withdrawn when our kids go for tertiary education. And also there're some saving insurance where interest is higher than FD. Does anybody has info about this?

Even though insurance sometimes provides returns higher than FD .. we dont see it as an investment. Insurance is a part of our risk management (what happens if I need thousands of ringgit for medical bills? I dont wanna sell my house/car.)
When buying insurance, dont look at the returns, look at the coverage. That's the main point of insurance.

This post has been edited by luqmanz: Sep 13 2006, 10:20 PM

Leekk8 and Luqmanz,

1) Just use a bit of common sense here. Insurance folks take your money and charged you commision to buy unit trust to be included in the insurance. This is what happening in those investment linked policy.

Let me ask you a simple question. Why are you paying insurance agent high commission to put unit trust inside you insurance when you can do it yourself to begin with??

2) In general, unless you meet an insurance agent that is very knowledgable. They cannot and will not separate the insurance portion from the investment portion. You really have no idea how they calculate the return since you have no idea how much you are paying for insurance and investment.

3) You do not know how to calculate retrun so how do you know what are their assumptions??

4) Insurance companies make a lot of money eventhough the agent commision is around 141% to 170% of the first year premium for each policy. Guess where they get their money from?? You, of course.

5) If you really do the calculation and they tell you exactly how much each portion: insurance versus investment. You will know and find that the return is worse than FD. Please noted that you do not pay commision when you buy FD.

Dreamer

IMO

To count anything as a proper investment, their current annual returns should be more than 5%. Anything below and you are not working your money enough. Fact is.. our current inflation is around that level so if you don't make at least 5% your real value of your money will shrink.

Therefore insurance are not proper investment tools, they are just risk management tools. Even if insurance does give you above that, there is usually a catch, it may be because there is some risk involved and you should demand a higher return anyway.

FD, well.. you are losing money just leaving it there...

Mutual funds, well if you accoutn for entering and exitting fees, managing fees, inflation.. If it doesn't make more than 7% per annum averagely.. I wouldn't think about it.

Btw... both FD and Mutual Fund is much more better than you buying insurance.

Nowadays, if you really notice about it, there is bunch of insurances agent fools fooling around for the commisions. They only asked you to buy insurance for future but what really in their minds is commisions. They saw you all as money in his pocket. This is what one of my friends experience of when he being as a insurance agent for a period.

Of course, most of people do buy insurance when some of them being cheated to have a returned more but what you believe later is your 20 years of insurance money RM90 per month
[ RM90 X 20 X 12 = RM21600 ]
only left RM5000. So where does those agent getting 140% - 170% of commision from? You. Think of it. Rather to put it inside FD for your child better from buying insurance. The insurance company just like a vampire sucking your money away.

My simple guide to life insurance

Life insurance is an insurance. It is used to protect against of the
risk of lost of income. For example, let's say A is the bread winner
of the family. If something happen to A ( for example die in an
accident), you will not longer have income from A. The family still
need to survive. Life insurance can provide/replace some portion of
the income so that the family still can survive. In some
circumstances, A will suffer some form of disability and can no longer
work, life insurance provide some compensation to help the family to
survive too. Please noted that in Malaysia, the protection against
disability is limited to what is specified in the policy. In advanced
countries like USA, they have disability insurance that pays as long
as you cannot work regardless whatever the cause is. This kind of
disability insurance does not exist in Malaysia. In summary, life
insurance is used to protect against the loss of income and
disability.

So, does life insurance makes sense to you??

1) Do you have dependents?
A) If you are single and have no dependent, it really does not make
much sense to buy life insurance.

B) If something happen to me, I would like to leave something for my
parents. Is your parent depend on your income for survival?? If answer
is no, why buy life insurance?? If you want leave something for your
parent, why not give your parent the money now?? Save the money from
insurance premium and give to your parent now every month.

2) If you are home maker and makes no income, why buy life insurance??

3) If you are married and your family depend on you to provide income,
in general, you should buy life insurance.

4) However, it may NOT be worthwhile for you to buy life insurance if
you have a lot of savings (more than 200K). In general, life insurance
in Malaysia get very expensive for payment greater than 200K.

All my comments does not necessary apply to medical insurance. Do your
own research to find out what is right for you. If your insurance
agent cannot explain to you why you should buy life insurance, why are
you buying??

The very complicated and complex thing about insurance in Malaysia is
that we do not have pure term life insurance. All insurance product in
Malaysia is normally a combination of life insurance, disability
protection and medical protection. In most cases, unless your
insurance agent is good and you do a lot of research, you really have
little or no idea what you are buying. I am not qualify to tell you
what you should buy and how much to buy in each circumstances.

The bottomline is you need to know is

1) what are you protect against??
Life, disability, medical

2) What is the likelihood for each risk at your age??

3) What is the cost for each option??

4) What is the maximum pay and deductable in each situation??

Insurance is used to protect against the situation where you do not
have enough resources to cover. You need to buy just enough so that
when the bad thing happen, you are coverred. But, you should NOT buy
so much that it costs too much to you.


Dreamer

Thanks dreamer for your info on this. This is really a useful guide.
You said that most of the insurance in Msia is combination of life insurance, disability protection and medical protection, is it true? I heard that there're some insurance, where we pay the premium every year and no saving feature. Normally life insurance has saving feature, where we can withdraw the money at certain age.

That is called term life insurance. In Malaysia, you need to shop around. Some term life insurance costs a lot more than those with a little money back.

Dreamer

Thanks for all the info. I realize we must get an experience insurance agent if we wish to buy an insurance.

Does anybody can give me some idea on the KLCI Futures and SSF(Single Stock Futures)? I wish to know how they operate and how we can buy and sell.

http://www.bursamalaysia.com/website/bm/pr...erivatives.html

Trading procedure:
http://www.bursamalaysia.com/website/bm/trading/derivatives/

Feel free to ask, I'll try my best

Thanks for your info guide dreamer. But I think it is more better to save your money in FD.

Today case :
A friend of mine SMS me about something like a insurance scheme. He's a insurance agent for ING insurance company. The message looks like this :

i want to tell you there is a bank giving 4.5% if you save RM5 per day. When you want to withdraw or you having health problem and can't save anymore, you will get all ur fund fully return + your medical bill. Is this true? I think this offer sounds too good.

commission is 40% for the first year and less the following years..eventually will get 100% of the yearly premium paid in 6 years.

Err ... we are not supposed to talk about return when it's about insurance. Insurance shouldnt be treated like investment. (i.e dont expect good ROI when buying insurance, just make sure the coverage and price are reasonable)

This post has been edited by luqmanz: Sep 15 2006, 02:16 PM

The main objective of an insurance particularly life insurance type is to protect your dependants on you in unforseen circumstances so that your dependants won't lose the financial support if anything happened to you.
It is not a good tool of investment bare in mind. There are plenty of other investment tools out there which offer much better return than it.

single stock future seldom got trading le

ya...today FAIR got 10 lots traded...first trade in more than a month

Why single future has so few trade? Maybe cause nobody know how to trade?

Most malaysian traders still had a hard time grasping the futures concept,and some of the SSF counter's margin is more expensive compared to the FKLI and FCPO.

Ya, I agree with you. I also can't understand the futures concept. Anyway, what is FKLI and FCPO?

arlo every1...im here to share some info wit u guys...
im not so turst on investment bcoz investment is usually sometimes depen on luck...
if u invest some money on it u need to care it much coz it sometimes will face suffer a loss n sometimes it will earn...
how if u loss money on ur invest? so i din invest anything b4...

and now my boss is doing a Saving Plan which is organizes by Allianz company and Bank negara malaysia.

Let say u save RM50k in this Saving Plan, after 10 years u can get back around RM100k++.

If after 10years u don wan take the money out, u can left, n if more 10 years, tat means 20 years u can get back around RM200K

If u save on this plan u also will get a free life. the value of Life is depen on how much u save...

Let say if economy getting worse after 10years, u no need sked about pay more on the saving plan, bcoz at the beginning of saving, we will ask u to sign a policy state tat even economy have any change in tis 10years, v also won charge u more or less, tat means u save RM50k then jus pay RM50K even economy getting worse...is slidely difference with other company saving plan.

and the interest on this saving plan is currently higher then FD,bank saving plan, insurance saving plan and many more...
even some insurance n bank employer(v cant state which company izit) also saving thier money on this plan... so u can c how worth izit tis plan...

sometimes ppl will care after 10years will the company still b ther...
i cant guarantee, but wat is can says is tis plan is organise by Bank Negara n Allianz company, Allianz is the Top 10 insurance company around the world and Bank Negara, every1 also know tat bank negara is an important bank in malaysia, so v no need to sked cant get back our money...


and the best thing of this plan is u can use this saving plan resit to put on ur account tat will submit to goverment.

Mostly v will recommand for ppl who wan to invest/ who wan to save money for ur future/ who wan to save money for thier children future/
Many investers also transfer some of thier money into this plan

A brief summaries
-guarantee get back 2x money after 10years
-No need pay more or less even economy getting worse
-Free Life ( i forget free which 1 dy)
-Strong company background(Bank Negara/Allianz)
-High interest
-No need to face any loss
-a better thing than invest

if u guys interested or wan to know more detials,pls call my boss at
Century Pioneer Company - MDRT
012-9876860

This post has been edited by kevinchlee: Sep 19 2006, 04:02 PM