Assuming fixed premium for annual coverage of RM1m-2m RM3k-3900/year (depending on company).

True. Cause standalone card cost like RM1k/year for people in 30 yo Vs upfront RM3k-3.9k for ILP.

If want the cheapest, gathercare. RM500+/year.

This post has been edited by Ramjade: Dec 30 2022, 10:57 AM

So when deciding between ilp and standalone, cannot solely be based on just this...
"You want to pay RM20k+/year in premium Vs RM3k in premium at age of 70+?"

There are other factors too I guess.

Can. Why not? Cause you want to pay more when you are old or pay more or less fixed old premium that you pay when you are young? When you are old, how sure are you that you are able to fork out RM20k/+year? Unless you are super sure by all means get standalone card.

Another stuff is look at coverage limit and guaranteed renewal. As mentioned got standalone medical card with RM1.3m coverage but premium you pay when 70+years old is RM20k/year.

For me ILP more worth it as Rm3k+/year is likely going to be worth only RM1500/year in future.

This post has been edited by Ramjade: Dec 30 2022, 11:10 AM

Anyone here done FIRE?

FI yes. no need to worry if jobless for 10 years.
RE not so fast

definition of FI varies for every individual. one can achieve light FI like me, where owning an 500k apartment house, normal 2 numbers of toyota car and have 800k in reits and stocks, with 200k emergency cash to spare

current liabilities: apartment loan, 8 credit cards loans amounting to rm130k taken at 2.9 - 3.5% loan decided to take because interest rate is going to increase anyway

managed to sell off my wife condo 3 months ago (net gain 50k after minus fees etc) and pour back to malaysian reits. namely igbreit & sunreit

some others is icemanfx, she may probably need rm50 mil to achieve FI to sustain her lifestyle

This post has been edited by square2: Dec 30 2022, 11:28 AM

40k a month doesn't need 50m.

Nice to hear, mate! That's a nice lot of investment 🙂

How do you cope with those credit card debts if you were to be jobless for 10 years?

If I reach FI, I'd probably be debt free first

Iceman, what's your lifestyle like?

Even 10k sounds a lot to me for retirement. Put aside emergency or health care fund. Unlese you're a keen traveler,

Quality lifestyle is not cheap.

thought about that. probably going to re-finance my housing loan.

some loans like car loans and credit card cash advance loans are dirt cheap. take it and throw inside during FD promotional rate could yield you additional 0.5-1% after contra.

the real deal comes when financial crisis strikes again. you can easily forgo the interest and get good blue chip stocks at 30-50% off

This post has been edited by square2: Dec 30 2022, 11:44 AM

I agree. But spending 1k a day is.. 😅

True. If you can manage debt well. The good debt, you're playing the system well

Not really, only when traveling once every few months.

Dont mix up fixed rate with effective rate. Creditcard rate at 2.9-3.5% is effectively 6 to 7%.

This post has been edited by MGM: Dec 30 2022, 11:53 AM

40k/mth is close to 500k a year

Even travel 4 times a year doesn't cost that much?

Depending on what class of air ticket, where and how long you stay, what and where you eat and how often.

That's real quality lifestyle

Contented is happiness.

DIY investors like you surely can beat these ILP fund managers return right?

The accumulation of amount of variance between ilp and standalone, if used to invest over the span of 30 yrs, will be large ..later at age 60 can use it to subsidise the higher standalone premium.
The premium of ilp may not be fixed as if the returns from investment of ilp is not enough to cover the rises of medical inflation, then I believes the premium of ilp will rise to enable continuous os its sustainability.

IMHO, dont need to be debt-free to be FI/REd as long as:
a. cash flow in generated by investments > (cash flow out +reinvestments for beating the kaka out of inflation),
AND
b. net worth +ve with 80%+ in investment assets and not lived-in property & other "fake assets" eg. cars and other stuff that depreciates+need $ to "feed".

i've >MYR250K short term debts & >MYR600K in mortgage debts

$40kpm *12 / 4%pa = $12M cukup la OR if inventive with cash flow, even less, kan?

This post has been edited by wongmunkeong: Dec 30 2022, 01:14 PM