The biggest threat to the value of a endowment insurance policy is hyperinflation. A million dollar policy may look big, but a sudden hyperinflationary event may turn it into a piece of worthless paper. I have posed the question of hyperinflation to many insurance agents, but no one can give me any answer.

Many people just cannot understand that it is possible that a cup of coffee may cost RM1,000,000 one day.

That's because many people just can't imagine how such an event can ever happen. Many countries around the world have experienced hyperinflation before, including us. Once a government can't control its deficit and start printing more money, a runaway inflation can start and basically nothing can stop it until the currency is totally replaced.

Only physical wealth such as land, buildings, businesses and jewellery can prevent the erosion of wealth by hyperinflation.