30% guaranteed income per year, premium pay for 6 yrs plan......as per image in post 17

Wealth Booster Plan, Investment Scheme
https://forum.lowyat.net/topic/4977858/all

your scenario mentioned are all risk taking.

Insurance is about managing the risk.

if the person decides to go YOLO and go 100% either you lose it all or win it all. By all means go ahead, maybe insurance isn't even part of that person's vocabulary.

For a person who can achieve FI as you've said isn't someone who simply got there coincidently, unless you've inherited from your parents or you strike Lottery or you got darn lucky at Genting. Even then a person who has FI will be prudent and smart enough to ensure the wealth is maintained to bring continuous growth.

Not squander at the next Ferrari just because he became rich overnight.

That being said how is all these related to even buying CI I wonder. LOL

As I've already replied in that topic itself, it is important to understand whether 30% is based on account value or based on the sum assured.

In this case, it's clearly showing 30% of the sum assured 200,000. As the guaranteed yearly payout is RM60,000 consistently.

IRR on the low assuming RM1,332,768 = 0.638%

IRR on the high assuming RM3,032,586 = 5.750%

IRR on the mid assuming RM2,182,677 = 3.680%

if you're buying the plan for the purpose of capital / wealth preservation, yes it seems okay but won't do well against inflation.

if you're looking for higher returns and not lock in for the next 20 years, this is not the plan for you.

if you hold it less than 20 years, you will definitely lose money.

Yes, all those are examples of risk taking...they are not needed to maintain FI...they might be needed to achieve FI...there’s a difference ya...and do not equate buying 4D with buying props ya....

Huh? Since when I say I go YOLO? Don’t simply say ah... I clearly said sometimes insurance needed, sometimes not needed... only hardcore salesman like u keep selling insurance using fear...never buy insurance means YOLO? Lol

Of course, prudence is needed to achieve FI.... how else do you think it is achieved? Buying Ferrari? Lol

well, that is provided you know how to calculate and what to look for to calcul;ates...
a layman on the street will only be captivated by the 20 or 30% returns....not know what actually happens between the lines....
thus for an agent that start with "buy now as this plan will gives you 20% return of your annual premium and just pay 6 yrs only then no need to pay more" was yklooi's worst encounter

I don't think he is gambling lah. After all, it is using $6 to buy $10. The only real cost to the person is opportunity cost.

Then again, I feel is a bit unfair to say "CI insurance is not needed after achieving FI".
Maybe this works for you, but for the rest of us still swimming in the ocean, or those of us "almost-there", a CI event can really impact our lives, our family, etc.
So we buy and keep our CI policies la, "what if" mah.

I'm in no way encouraging gambling, I was just elaborating on the many "What ifs" that could happen due to the choices we make.

And we're not living in an either-or scenario between paying premiums and everything else we need to live (ie: roof over our heads, car, investments, occasional luxuries, etc).

But yes, I do regret didn't put more into technology and glove makers.
But ship already sailed. So what to do? Readjust portfolio, read read and read, and reinvest into other counters / channels.
XOX let's go!

This post has been edited by JIUHWEI: Aug 10 2020, 11:46 PM

Hello ? can you please quote a text that says I am selling insurance using fear ? if you're going to quote me on using assumptions earlier.

Did I say you? I was referring to "the person", if that "person" you think refers to "You" then I guess siapa makan chilly, dia rasa pedas lo. I didn't point anyone in my previous post on who is that person btw.

Assumptions are necessary What-If especially it happen in real life, just because a situation doesn't happen to you doesn't mean it doesn't happen to someone else out there. If you think you are in luck and God given, you live till 80 without getting sick, accident, died of old age. All is well for you. Good job saving those years of premium, too bad for insurance company ay? I don't think the insurance company cried about it though IMO.

I am still waiting for you to provide me with the answer on my earlier question on the 3k passive income guy, hopefully you don't change anything in the question and answer accordingly without adding on any other factors.

I dunno what is this $6 and $10 leh... forgive me.. I just jumped into this thread randomly posting as nothing to do... lol

Ya... I was just “agreeing” with another poster (I think he sells insurance too - Holocene?) that CI not needed when one has achieved FI .... just a simple statement and I agreed and someone else got triggered ...... the lifebalance guy

Hence my advise is, seek a good agent to do all the necessary reviews before they proceed to take any action or risk losing money / opportunities.

Not every human has next 20 years ahead of them.

alamak, pose you a question then you think I got triggered.

You mean you think you're allowed to ask questions and advisors can't ask questions ?

Fair abit la, I ask you a question you clown about saying unethical to ask

Mind you, I was asking the question properly instead of trolling and asking you nonsense, but seems to me that you either don't want to answer or just ignorant to only want to listen to what you want to listen.

Is a rough estimate of total premiums paid vs the sum insured over the duration of the policy lah.

Aiseh, people can have different game plan and different priorities mah.

I prefer to goreng in share market, some others prefer to jump on funds. No right no wrong wan mah.

But I can see where he is coming from lah. He meant well lah.

Come down to it, fact finding most important.

If it is not suitable, then it is not suitable. The plan how good also no use.

i guess that is why yklooi asked about it earlier so as to try to pass some knowledge to his sons

yea hopefully they can pick up some financial knowledge, though it can be dry and boring sometimes. But it's quite interesting once you get a hang of it.

K lets end this meaningless back and forth.

Informative. That means purchase at younger age will not save you on premium cost but provide wider coverage for illness yet to happen?

straight direct answer to your question......yes seems like so, for as mentioned above postings, the premium WILL rise later too. YES, if you buy, it will provide coverage for things that could happens.
but
i guess that depends on from which angle you looked at?
as mentioned earlier, TS has already got company medical insurance.....
thus does he/she needed another medical insurance?

some would deem that is not necessary but others would say it is.
some would put in "What IF",
if that is to be taken into considerations, then the possibility are just endless.

some would argue that there are financial opportunity cost to bear in mind if one is getting a wider coverage just for the "What IF".
thus there are also some basic rules to consider the "What IF" scenario abit more holistically
example, do you have dependents?
do you have members of direct family members (brothers/sisters/parents) having history of medical problems (like, high cholesterol, high blood pressure, etc, etc)?
is your BMI number above average?
is your lifestyle sedated?
is your worklife exposed to 2nd hand smoke? or do you smoke?
do you have consume alcohol most of the days in a week of at least 2 glasses each out thing, or something like that....
etc, etc

well that is just my layman on the street take,...not sure of what those real insurance sifus think.

This post has been edited by yklooi: Aug 11 2020, 08:36 AM

Thanks bro, this is a good exposure for the agents out there that there are more perspective look into than just looking at one angle which is just selling insurance blindly.

There are countless “what if” situation. If I may add, sometimes people buy into additional coverage or insurance rider which may not be necessary. It’s like that extra bling you can get in a new car if you pay slightly a little more for the higher model in the variant.

Or should I use the word /k, top up a it more get “something better”.

Again, spending for insurance is an opportunity cost, there must be a a balance to it so that you have the money to do other things I.e spend on yourself, invest, do something you want with the money for lifestyle, food, entertainment, self studies. Life is all about living it.

A proper agent should be able to advise the balance, if they can’t then they are probably just selling for the sake of selling.

However, if a person decides he wants to cover more of his personal risk by having more insurance, who are we to tell whether he is right or wrong with his decision ? Similar to the existing case where you mentioned he had group insurance, does he need a personal insurance ? Is akin to a parachute who has a main parachute, should he have a back up parachute as well ?

This post has been edited by lifebalance: Aug 11 2020, 09:10 AM

For people that already have a company medical card and would still like to get a personal one, they can consider a medical card with high deductible and retirement option or without.

At the end of the day it all comes down to the individual’s personal financial plan.

It is all about managing downside risk.

Best,
Jiansheng

Myself also have medical coverage from company. For now not considering any additional insurance. I think the worst fear is the fund pool depletes and premium increase

Ok noted Yr choice..
Just suggestion only.... That money saved from not buying additional insurance should be used for investment or saving and not for other good to have or just a feel good moment uses