Hello,
Not very experience, still learning. I would like to hear what others have to say too but here's my .2c:

Since you're travelling with bike, i guess PA is good to keep. But for Hospital Income, the insurance company will pay allowance when one is admitted right? If yes i probably won't bundle it with my PA. You can get a normal PA policy for as low as RM1xx p.a.

If your company provide you with medical card, you can opt not to buy at the moment BUT i would strongly advice you to get at least a basic term medical card; dont take up bundle of investment + protection + saving. Get pure protection for insurance, FD for short-term savings and since you're bumi, you can always opt for ASB for investment fund. If you're looking for EPF alternative for retirement, check out Private Retirement Scheme (PRS), you can get more info in the forum or fundsupermart.com

Consider life insurance only if you have dependent. And again only buy pure protection, try not to bundle up with savings and investment.

If you plan to buy a car, can you afford a housing loan? With your combined income, you'll probably eligible for somewhere between RM500k-600k housing loan; just a rough estimation; no experience here. And you need to put some effort if you're serious about 2nd hand car; common issues with 2nd car is the maintenance fee which will cost you in long run.

So basically here's a summary of my view:
- Get only pure insurance for protection; you can cut down on insurance expenses. Forget about fancy perks and bundle!
- Short term savings, FD; Minimum to no-effort Investment, ASB; Retirement Fund, EPF and PRS
- If car is not a necessary, den that is your answer ;otherwise
- In your case, since you're getting married i think getting a home first is a better choice

And this is my view
Btw you have good savings!

This post has been edited by morning06: Mar 25 2014, 04:28 AM

There you said it yourself, you will be paid RM400 if you're warded means the rider pay you when you're admitted

So the hospital income, it depends on your need. If you want to cut down the premium expenses i would recommend switching to a basic medical card which will cover your medical fee and get a PA without the hospital income rider.

As of the ASB financing, i have 0 experience so can't comment.

Your current insurance
PA+Income Rider = RM768/year; cover accident and pay you income when you're admitted
TOTAL = RM768 ; RM64/month

Here is a estimated insurance charges (not agent so just an estimation)
Basic Standalone Medical Card: RM800/yr ,available from as low as RM400/year at your current age (premium increases on age category, nrmally every 5 years); cover your medical expenses
Basic PA = RM150/yr
TOTAL = RM950/yr ; RM80/mo
*If there is a need of Life Insurance, get a quote for term life from agent.

OR If you wanna follow the norm, you can always get investment linked bundle insurance (not recommended as of my self preferences)
Investment-linked bundle est. premium (common quote) = RM2400/yr ;and you get a bundle of medical, life, PA, investment/savings
TOTAl = RM2,400/yr ; RM200/month

Since you need a car den try to get one within your mean for now. Second hand car is good if you can get a good deal. Try don't spend so much for a car (liabilities), a local car is not that bad for starting

So you are planning to buy a house at Tmn Melati, at the same time rent a house near your working place? If you can get a good house deal den should be no problem but your savings will take a big hit if any left.

Your current saving/month
RM1200
+ RM140 (RM7/day at 20 working days est.) Motor fuel since you're using car now
+ RM64 ;your old insurance
TOTAL = ~RM1404

Est. new expenses
Personal
(A) Basic Insurance OR (B) Investment Linked Bundle
TOTAL = (A)RM80/mo (B)RM200/mo
* you can always get a lower quote on (B) from agent, if you insist to bundle

Personal/Share; halve the amount if share
Housing loan repayment for a RM300k property = RM1200/mo
Car installment = RM500/mo
Car fuel = RM250/mo ;lower since you renting near your workplace i assume
Rental = RM500/mo < can rent a house/unit within your working area at this price?
TOTAL = RM2600/mo ; halved at RM1300/mo

A basic calculation, might have missed out some of the detail or over est. some of the cost. Base on this est., you're going to be tight if you plan on getting a car, rent a house and buy a house at the same time now. Wait for the more experienced sifus to reply coz i have no experience



This post has been edited by morning06: Mar 25 2014, 03:50 PM

If you're worry about your dependent in cases where you can no longer work (Total and Permanent Disability,TPD) den a life insurance (health) and PA (accident) is more appropriate to pay for you and their expenses for 'n'-years/months depending on your plan. Rider is just a luxury that you pay more for EXTRA insurance benefit, of course like i said if you find it useful den it's for you. If your goal is to cover you and your family expenses in cases of TPD; being not able to work anymore, Life insurance is better than the hospital income rider.

Yes, medical card is the minimum in insurance.

For house, it's better to decide with your family; coz it's a big commitment. Different people different view on this, there are people who prefer renting a room instead and buy property to generate rental income. There are also people who will get a home first; which for your case since you'll be living with your new family. No right or wrong, so you'll have to discuss with your family and make the call yourself.

The calculation is base on property @RM300k, can you find any at that price range? If not den you'll have to review. Calculation haven't include any Life insurance (to meet your basic need which you said you do not wish to burden your family in cases where you can't work anymore) And if you still can save 46% from your combined income that will be a good figure. But you'll have to take note of some not-so-frequent expenses like emergency, car maintenance, repair etc. etc. and more importantly, you have to plan for your child since you'll be having one soon. Can the remaining amount pay for your child expenses ? If not den you're in big trouble...



This post has been edited by morning06: Mar 26 2014, 01:12 PM

Sometimes its the parents that's demanding on the wedding lol

Housing 10% dp for new property, prepare an additional 10% for legal and stamping fees for existing ready to move in property. Additional/luxury renovation and furniture can always sort out later if tight on budget, get the basic ;bed, shower etc.

And yeah, plan ahead of your commitment so your loan application doesn't get stuck. Get a banker to help you out with a exact calculation

Notice the BIG IF that sir wong highlighted

And just to be fair everyone have their own choice, so don't jump the gun and say that someone else solution is crazy. It's crazy to you but that doesn't mean the same for others.

Assuming the medical fee is way above stated RM10k - RM50k, IF that person have wallet so deep that even few millions is nothing to them, I don't see a problem there. It's their own money and they have the right to do that, and did you personally interview all the rich man and come to that conclusion that they wouldn't do that?

I fully understand that you're doing your part and job in educating people on insurance knowledge, but please also understand that some people just know more in handling their own money and finance better

Cheers.

That would be a great effort but the problem is most of the consumers just don't bother
I've tried to explain several times to my circle and even my family, but they ended up trusting the agent pitch rather than the facts that i lay out to them. But I might have did a bad job at explaining

Haiz I have some friends who even asked me to explain how insurance works before they purchase them. I even suggest them for some of the companies and told them roughly what to look for but in the end they still buy whole life/ILP. When i asked them why, they just tell me it's too troublesome dealing with the agent, got return also not bad mar

Maybe people who are not sensitive with numbers prefer fancy presentation(videos and infographics) than excel But i doubt thats the case

Previously have this idea of providing insurance info but after running some test on friends and family, it seems a lot of people still don't care much about proper insurance planning. They will just buy what the common buy and what their agent suggest even after explaining to them But again it might be my bad explanation

So decided to put this mission on hold and focus on my own stuff since they don't even bother to take control after getting such info