"Savings is needed in case of emergency". Now... think, what is emergency?

- Is going to Karaoke emergency?
- Buying handphone?
- Buying gift for gf/bf?
or...
- Had an accident warded to hospital require surgery?
- Diagnosed with cancer, requires treatment?
- Husband passed away (bread winner of family), how much can you survive with the saving in the bank?

RM150 / month, you get RM100k death benefit, how many months do you need to save to reach RM100k if you save RM150 per month?

Majority traditional Life Insurance plan will break even about 15 - 20 years, which means Surrender Value is more than total premium you paid.
So if you bought an Insurance plan at the age of 22, and when you reach say.... age 65 you feel that you are old enough... die die la, don't need the insurance anymore, no more dependent... etc. You can surrender the policy and a very high chances are the cash you got back is more than the premiums you paid.

Yes. I'm an Insurance Agent (GE). What I'm trained in giving a quotation to client is...
1. Annual premium should be around monthly salary to maintain affordability. You're only putting about 8% of your monthly salary into insurance.
- Salary RM2400/monthly, pay about RM200 per month for your insurance lor.

2. Sum assured should be around 3 times your yearly expenses. So that your dependent can survive on your insurance for at least 3 years or more.
- Monthly expenses about RM2000, 3 years is RM72000. Sum assured is RM72000.


**Don't treat Insurance as the only form of saving or investment. As we all know, higher risk, higher return. Insurance product is considered risk free, so the return.... . BUT Insurance policy is a saving account you must have, and discipline yourself to save into it. Can understand ah? **

This post has been edited by bbjslee: May 9 2008, 10:09 PM

I understand your point of view, and I agree to a certain extend.

1. Maybe you replied before I added the footnote.

2. Does your saving in bank account provides any coverage?
3. How many people are disciplined enough to save into bank (saving/FD) monthly/yearly? If most of us are financially disciplined enough, there won't be so many credit card slaves in Malaysia.
4. How likely is a person to be unemployed for 3 months in Malaysia? (Not even a cashier / waitress job?)
5. Do you know you can apply for loan on your whole life plan? I know some business man applied for the loan before without much hassle when their business are in dire need of some cash.

It seems that you're more towards Term Insurance instead of whole life / ILP.
That's your personal view, but do you know what are the disadvantages of it?
- There is no return when the policy expires
- Premium starts off low when you're young and increases as you get older
- Limited riders/supp. benefit

Sorry maybe have misinterpreted your POV. I sincerely apologize for it.

1. We do agree on certain things.
- SAVING IS A MUST.
- Certain protection should be in place. (Dreamer seems to be more supportive of term insurance than whole life)

2. What we couldn't really agree on is what is EMERGENCY.
- We have different personal definition on it.
- For me, any events regarding health or accident is more emergency because we could never foresee it coming.
- Besides, when you are unemployed, the last thing you want is being involved in an accident or have some serious health problem.

3. I'm a strong believer in forced saving. I set my saving account (salary) into Scheduled Inter Giro into my another bank account which I do not have ATM card or CC. And I do set aside about 20% of my salary for saving. Anyway just in case some of you got confused, I'm a part time insurance agent working towards fulltime now.

Anyway, the thread is about "Over-insured". That could never be a clear guideline on that. There are people who buy insurance policy with premium 20% of their income. It has to be reviewed case by case basis.

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Added on May 10, 2008, 12:07 amI grad in 2002 almost into 30s now. I've never been out of job for a week. Perhaps I was lucky

Anyway, the way you put it, is almost like personal attack.

We're here to share our POV on the subject "over-insured".

This post has been edited by bbjslee: May 10 2008, 12:07 AM

1. I couldn't tell you step 1 - step 100 how I sell insurance. This is not "how to sell insurance" thread. The 1 golden rule that I uphold is Be HONEST to your client. That's how I would get return clients and more referrals. Besides, I wouldn't want my client to stop his Insurance policy due to financial problem. Having less commission is better than stop of commission.

2. I agree with you. That is why I already stressed in my post. DO NOT treat insurance as your only saving. Besides the recession/employment you've been stressing all the time, you still need saving to buy cars, houses.

3. Back to my point 1.

- Have you made any insurance claim or anyone close to you made a claim before?

Gosh... you never sleep?

How did I claim that is not true? Did I mention it from one of my sentence or you summarised it from my various post?

Why not you share with us what kind of insurance policy you have and why you chose it? (If you do not have any, then why?)
- I could learn some new points of selling insurance, and product idea to sell to people who have same mindset as you.
- People who are reading the thread could benefit from your sharing, since you been through recession soooo many times.

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Added on May 10, 2008, 8:18 amHave your insurance agent told you
- What are the pros and cons of the product?
- What would happen if company's investment is not performing at all?
- What is the GUARANTEED coverage? is "Coverage" NOT "Return"

If missing any of the above, go back to your agent and ask him/her to explain again.


This post has been edited by bbjslee: May 10 2008, 08:18 AM

If AIA Malaysia try to disassociate itself from AIG, meaning to say AIA Malaysia can no longer be proud of itself as one of the largest Insurance Company in the world.
And furthermore why put Manchester United team on the front page of AIA.com.my? It is AIG that sponsor it, not AIAG or AIA Group. Unless meaning to say, AIA Malaysia has not been 100% separated from AIG. Unless of course, "Separation" still in process.

OT: Please complain to your AIA IT department, www.aia.com.my MUST use IE to load.... @#$%^&