Dreamer,
Emergency fund = Save & Create
Insurance = Create & Save

What will happen if something goes wrong along the way before he can saves up his/her emergency fund. eg: accident

I would suggest that emergency fund is put aside for other purpose, for example, you mentioned unemployed. He/she can use the emergency fund at that time.

However, for all other possible such as hospitalization,retirement,death etc you can save it in insurance. Let the insurance manage your risk.


I never recall, telling any of the forumers/my client to save money only in insurance. I always advice to diversify your saving.,not putting all in one basket. Insurance is only one part in financial planning !

This post has been edited by Civil: Jan 2 2007, 06:08 PM

Let me list down the PA Benefits here for you to understand more about the policy. Most of the company offer almost the same benefits, but the premium might be differ.

Accidental Death Benefit
Pays the capital sum in the event of accidental death

Partial and Permanent Disability
Pays up to the capital sum as per schedule

Medical Reimbursement
Reimburse medical expenses up to the sum insured inclusive of hospital room and board,clinical,outpatient andsurgical treatment

Weekly Indemnity
Pays up to 104 weeks if the insured is totally unable to attend to his work as certifiedby a registered medical practitioner

Broken bones/Burns
Pays up to RM20k as per schedule

Physician Benefit
An additional medical benefit up to RM500 to cover treatments by acupuncturist, bonesetter,chiropractor, osteopath & pysiotherapist. ( Provided the first consultation is by registered medical practitioner).

Daily Hospital Income'
A daily hospital income up to RM130 per accident ( max.180 days)

Renewal Bonus
10% renewal bonus on accidental sum asured a year up to 50% maximum

Ambulance Fees

Pays ambulance fees incurred consequent upon accident up to rm200 per accident

Death Benefit ( Any Cause )
Death benefit up to RM60k is payable in the event of death

EXCLUSIONS
War, civil war, terrorism, AIDS and diseases including dengue fever, Japanese Encephalitis, childbirth, miscarriage, provoke murder or assault, travelling as an aircratf crew, aerial activities, martial arts, racing, radiation, nuclear weapons material and intoxication by alcohol and drugs

This post has been edited by Civil: Jan 7 2007, 12:23 PM

I also have few question for dreamer

1. Have you bought any life insurance in Malaysia?

2. If yes, what type of policy you have?
If no, why?

This post has been edited by Civil: Jan 8 2007, 11:24 PM

Dreamer,

How many people can actually do like what you did.
Lets assume average income is RM2K. I doubt that he will survive by practicising your method.

Let say one's family household income is 3K with 2 childrens. To save 50% of their income is not easy as someone might think.

In basic financial planning, 5% goes to insurance and another 5-10% goes into savings. I think this formula is suitable for most of the people.But of course, if you can save more than that,its better.