I honestly don't see the point of argument about COI when insurance company are here to make money.

Here are pointers:

1# Insurance company are here to make money

2# Insurance is a long term commitment especially medical insurance, therefore you can't simply just pick another insurance in the near future if you have any pre-existing illness

3# COI (Cost of insurance) will essentially go up, no company in this world would FIXED their price/charges on you without consideration of profit, cost, shareholder, competition, etc, Again refer to point 1#

4# Take insurance because you need a coverage and specially the ones that fits your need for planning

5# Don't buy because you get confused by agents showing high returns or tells you that you can get high returns from insurance

6# AGAIN and AGAIN, Insurance is for protection on your personal risk and not to make profit out of it

When it comes to CI, it’s suppose to be an income replacement so you can say you don’t need to have a CI insurance once you’re financially independent.

Best,
Jiansheng

Insurance was created by the rich people to protect themselves from hazard, why use own money if can use from the pool of money.

it's easier to use from a pool of money created by 100,000 ppl than you yourself creating that pool of money yourself (unless you're a billionaire then instead of you buying insurance, you should open an insurance company lol)

whichever floats your boat. I leave behind 10% for the 300k and use the remaining 270k without much worries because I know that I have another 300k on standby if anything happens to me.

Hence I created 570k instead of just 300k. Which is a smarter choice ?  I don't mind the extra money, I rather have more than less/just enough

When you talk about CI, if you have planned for the money after your retirement after 55 and expected to live up to 75 to 80 years old. Then you would have already prepared for that fund.

Then you may not necessary need a CI coverage by then, as I've said earlier that CI is a tool for income replacement.

If you're a single, then pray hard you have made enough money when you're old and grey for any major illnesses because no one is going to take care of you (unless you have rich friends to pay ur hospital and living expenses bill)

if you're married with kids, then hope your kids take care of your expenses if you're not rich, if you're a good father/mother, and don't want to burden your children cash flow, make sure you have enough money to take care urself if you're sick.

Like every resources, it will be depleted, your scenario has no example of starting point, we just assume "Yeah he is Financial Independent", how much is there in his bank account then ? what is his lifestyle ? What is his commitments ?

If your scenario is, oh he has no commitments, RM10,000,000 in his retirement account, passive income from just getting the interest every year, by all means sir, don't get the CI insurance.

Assuming 10,000,000 x 6% interest, that's RM600,000 yearly, you can't take care yourself with that money?

Again your scenario has no base or starting point and based on assumption, it's like chasing a rainbow wild goose if you want to hold this discussion. Because once I've given the above example, you would again come up with another different scenario that alters the position of this imaginary figure of "financial independent" with no exact base figures. My advise is, use real/constant figures to establish the base point instead of constantly moving the goal post. Then discussing will be much easier.

lets use your assumption that RM3,000 passive income per month is enough for someone, which means we are assuming this person doesn't work anymore (since he's retired and no longer employed). Which means he livelihood depends on this RM3,000 monthly, no more, no less.

If he were to be critically ill, assuming he has a medical card to pay for it. But instead of just RM3,000 monthly expenses now, he needs to fork out extra RM2,000 on top of it to buy medication and change of diet, maybe instead of walking up and down, he has to hire a caretaker to do the chores, hence the 2,000 extra.

How is he able to survive then ? He only gets 3k monthly, he needs 5k monthly now. The only way is to take from his capital which provides his passive income (this is assuming he doesn't have cash savings/FD/etc liquid).

Wouldn't this ruin his long term passive income then ?

How would you propose to solve this gentleman's problem ??

Changing the goal post again when I've set the base standard clearly for assumption purposes
Like I said, assumptions which may incur extra usage of funds needed, now you're adding in on top of my constant assumptions, for what?
Quite clearly I've set the assumptions and constants for the purpose of discussion and you haven't seem to come up with any proposal or proper answer but name calling instead, and on what ground do you have the right to say it's unethical ?

My summary is, you're a Troll.

Chill bruh, I think he meant well.
Yes, there are a lot of "What ifs", that's why people buy insurance (or Kuda, Toto, Magnum or make trips to Genting).

Changing lifestyle is always good, just like how we review and readjust ourselves from time to time.
It's not about balance, but we do it because it is always a balancing process. We're always balancing, always readjusting.

In fact, the person want to buy or not, the person already bought.
It is only the difference between
1. buying from an insurance company (so premiums are paid to the insurance company)
or
2. buying from oneself (so the premiums are paid to his/her own banking account)

At the end of the day, we choose the route with less pain.
Regret due to paying premiums "for nothing";
or
Regret didn't buy or didn't buy enough.

Insurance is like that, betting also the same, play share market also the same.

Don't angry ah, he meant well.
Always good to have good reminders around mah.
Like having a mom around.
I really really miss my mom bruh...

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

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!