<<If every month you put rm 100 / rm 150 into a savings plan, you get more than putting rm 100 / rm 150 into the bank>>

How do you know that is true?? Do you know how to calculate and do a proper comparison?? I doubt that very much. And, you assume that insurance agent will give you a proper comparison. How smart is that??

Dreamer

Zarth,

Let's breakdown the scenerio one by one.

1: There is more than one way for people to be disabled than it is cover by TPD insurance. If you got in an accident, you are cover by personal accident insurance which can perform the same function as TPD by accident and it is a lot cheaper.

2: Which is probably not cover by TPD insurance. And, if you have critical illness insurance and it only pays to the hospital.

3: In a serious recession which typically happen in Malaysia every 10 years, you cannot find job and have NO INCOME for a few months and up to a year.

4: Which the person should not buy insurance and waste money on insurance commission to begin with.

It is safer to save that RM100 in bank versus insurance. And, roll the money into FD whenever it reaches RM1,000. A person should not talk about savings via insurance or investment until they have 3 to 6 months of expense in bank as emergency fund.

Dreamer



This post has been edited by dreamer101: Oct 4 2007, 08:56 PM

xcutelilgal,

Pardon me. I do not think you know the savings scheme in insurance. In a lot of cases, the return is worse than FD with a lot less flexibility. You NEVER really calculate and do a full comparison. Or else, you will not makes this statement.

<<it gives you better benefits than putting in a bank of which money value drops and interest rate is super low, >>

Which applies to saving scheme in insurance too. In fact, the return rate in insurance is fixed while FD can be renewed annually. on the situation where interest is going up, FD will return more than the saving scheme.

Dreamer

clsiluf,

1) Do you know that in most cases, they are probably correct?? It is a waste of money for most of them.

<<they keep thinking insurance is mlm ... con people's stuff ...>>

2) That is true in a lot of cases too when people buy insurance that they do not need.

<<which is very wrong mindset ..>>

3) It is ONLY a wrong mindset if you are an insurance agent trying to sell to them.

Dreamer

yewkhuay,

<< commision is paid by the company to the agent not by clients>>

This is a very NAIVE statement. There is a Chinese saying : Wool always came from sheep.

<<be fair with insurance agents, they r just making a living . >>

They could make a living by selling the RIGHT and CORRECT amount of insurance to people. It is selling the WRONG insurance and convincing people to buy TOO MUCH insurance that I am against.

If someone buy an expensive car, the person at least enjoy an expensive car. If a person buy TOO MUCH insurance, besides wasting money, the person get NOTHING.

Dreamer

clsiluf,

What kind of medical insurance?? How much is the coverage?? How much is the deductable? How much is the premium??

Insurance make sense when you pay a little to cover a huge financial risk. So, how much is the financial risk of a young people getting sick?? How much is the risk of young people getting sick need a huge medical expense?? Is that the greatest financial risk for young people? Hint: it is not.

How many insurance agent actually went through all those stuff with a client?? Or, they just say buy as much insurance as you can pay?

Don't play FUD with me.

Medical insurance is about the lowest priority kind of insurance for most young people.

Dreamer

P.S. We had went through this and more on the insurance thread until no insurance agent dare to post there anymore.

This post has been edited by dreamer101: Oct 6 2007, 01:22 AM

Zarth,

Can you guarantee what would happen to a person is precisely the same event that protected by the insurance that you buy?? No too.

If you buy life insurance, you only protect against life.

If you buy medical insurance, you are only protect medical condition.

And, so on.........

You can use the money in the bank for any kind of emergency. For insurance, it only works if that particular kind of event happen to you and you buy that kind of insurance.

So, a person should only buy insurance if

A) That event is very likely to happen.

B) That event cause a significant financial impact that cannot cover by emergency fund.

C) That cost of that insurance is low enough.

Dreamer

This post has been edited by dreamer101: Oct 6 2007, 04:03 AM

Zarh,


<<A) The problem is Accidents/Deaths/TPDs/Critical Illness/Hospitalization can come at any one time in our lives, be it young/old/boy/girl/rich/poor.

There is no way to show the exact future predictability table that it is more likely to happen to someone compared to the other.

Hence, the only thing you can rely on is past history, statistics, which is exactly what actuarist used to determine the premiums.

But as we all know past history does not always indicate the future. Therefore, premiums are constantly revised based on the latest statistics & trends.>>

Bingo. So, tell me in order of likelihood of destroying a person's financial future, which are the following are more likely to happen for a male person between 25 to 30 years old?

A) TPD
B) Life
C) Medical
D) Critical illness
E) Accident

Insurance is used for risk management. To manage risk, you need to know

A) The likelihood that it can happen
B) In the event that happen, what is the usual financial cost?? What is the worst case financial cost?

How many insurance agent selling insurance without telling the customer about (A) and (B)??

I am NOT against people buying insurance for risk management. I am AGAINST people buying insurance without knowing what is the level of the risk that they are managing. For example, young people that spend a lot of money on life insurance when TPD protection is more important for them. They are more likely to be disabled than die in young age. And, financially, to be disable is worst than dying for young people.

What is the most common event that kill young people?? Accident?? Medical?? And, etc?? Which one is the highest risk??

Insurance is about RISK management. How can we talk about RISK management when we are NOT given information about what is the level of RISK that we are facing at each stage of life??

I have great respect for you. You are one of few insurance agent that post at LYN who try to give CORRECT information and actually service the customer. You actually give service to the customer and think about what kind of protection that a customer need. The problem we have at LYN is we have too MANY insurance agents posting at LYN that does not do that.

If a person buy a car, he at least know how many wheels is in that car. If a person buy an insurance, he does not know how much risk that he is protect against and how much the risk cost. Does this make any sense to people?

Dreamer

nissin,

<<insurance is to protect against the loss of ability to earn income leh>>

You know that such an insurance does not exist in Malaysia. So, don't "bait and switch". Telling people something but selling people something else.

Don't tell me that you are another unqualified insurance agent.

Dreamer

---

Added on October 7, 2007, 10:41 pmp4n6,

<<Imagine if you have millions in the bank, stocks and mutual funds ... those money can't be touched unless you are awake and walk to the bank to withdraw it. No one else can do that for you! >>

This is so STUPID. If you have millions in bank, you should be smart enough to have

A) Joint account so that your wife can withdraw money for you

B) Living will so that someone else or a lawyer can withdraw money for you.

Do you really know anyone that has millions in the bank??

BTW, people at that level has at least 10K to 30K sitting at home in cash for their usual expenses.

P.S.: Anyone that is rich enough will not put millions in a bank. They know that only up to 90K is insured per account.

Dreamer

This post has been edited by dreamer101: Oct 7 2007, 10:41 PM

[quote=nissin,Oct 8 2007, 12:19 AM]
[quote=dreamer101,Oct 7 2007, 10:34 PM]
nissin,

<<insurance is to protect against the loss of ability to earn income leh>>

You know that such an insurance does not exist in Malaysia. So, don't "bait and switch". Telling people something but selling people something else.

Don't tell me that you are another unqualified insurance agent.

Dreamer

---

Added on October 7, 2007, 10:41 pm

hi dreamer!

why i said that insurance is to protect against the loss of ability to earn income is... because, there are few reasons why i wont be able to work.. which is accident, critical illness, retrenchment, masuk hospital and so on.. retrenchment i tak boleh control la k.. and also the rest . But, coming from not so rich family hor, i am responsible to put food on table one.. if i kena accident or masuk hospital or critical illness, i know guaranteed my family no money to eat, no money to pay bills and treat my sickness. that is when insurance comes in to compoensate me for these things, since i paid so much $$ for it liao. the $$ i get from my policy wil then help with my modest lifestyle and my medical bills lor. This is what i meant by protect against the loss of ability to earn income. Imagine if i got no insurance at all, at times like this it is even more worse.





[/quote]

nissin,

Let me repeat one more time,

WHICH INSURANCE PROTECT against the loss of ability to earn income?

It does not exist in Malaysia.

There are insurance that protect you against death, accident, critical illness and so on. They DO NOT PROTECT against loss of income. If they do, when you get retrenched, that insurance will pay you something.

The only kind of protection against loss of income under ALL circumstances are savings aka money in the bank. And, the more insurance that you buy, the less money that you can save.

If you really worry about loss of income, you should save a lot of money in the bank. Insurance only pay if you lose your income under SOME but not ALL circumstances. Since we are likely to get into a recession soon, buying MORE insurance that does not protect against job loss may not be a good idea.

Dreamer

This post has been edited by dreamer101: Oct 8 2007, 12:53 AM