1-7 yrs, the money to cover the insurance plus investment.

most money got to insurance, so, the money i can get back is very less. After 7 yrs, then u can see the return is more.

i am very lazy to make any comparison liao. So, i think i will take this offer.

Wrong, it is LAZY individual that will act like that.

Cheers

"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.

i already having the plan.

i think, most of the people know, insurance is for protection.

RM200 is about my 7% of nett income. So, i think i am still afford especially when i am single as now.

investment is bomnus for it. Investment link does not gurantee the return, and this is the risk. Yet, it can create more return than Life insurance.

When there is a risk, there is a chance.

With this amount, i can have the protection and may be the return. Why not?

The only risk i forseen is, i lost my return. And just like unit trust. i need force to cancel it. So, i need to take an eye on it always... And, i told my agent to alert me on this.

4. How likely is a person to be unemployed for 3 months in Malaysia? (Not even a cashier / waitress job?)

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 am

I 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".

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?

1. my salary is about 2400 - 2700 (after deduct the epf + part time allowance). Hopefully will be increase after march.

My monthly saving is like +-200 (if i pay RM200 for the insurance)

2. of course, i have parent and they are the only person that need my financial help.

3. i am doing programming and company actually but the term life and group pa for me. But i can depend on this.

4. my worries is, i have no money to buy house.

  haha. ya, i nvr mention how is my saving level. To be honest, last time, when i have no credit card in my hand. i am still able to keep track how much i really save from my income, using simple excel form. Now, i does not able to do so. Yes, i am lazy. I know i am.  But, i believe that, i am able to save 15% from my income.

Since one of my FD is mature and i do not plan to renew it. As, i plan to put the cash in bank -> RM10k to public bank foreign currency FD very soon. And, i have no unit trust and other investment.

I will clear the credit card debt in every statement. i never kena interest before. 

The major expenses is my car, installment RM500 and the petrol. also some dating fee.

When i read thru the post, my concern is that, i buy wrong insurance as investment link is not the one for me.

Sorry, i does not update my income. Well, this yr start, i have my increment. Now, basic is 3k and 4~500 allowance.  And plus the bonus and travel/project allowance when i can travel oversea. But, not every month i can travel. this make me have less money...

oohh. the 10k is not my emergency fund. i have nvr say that. i still have 10k more located in normal FD.
Hi lwb
Foreign FD is very hot recently. It is better than the normal FD. The risk should be lower than the unit trust as the foreign currency like aus and nz is stable compare to malaysia. So you know how this foreign FD working?
Well, i really feel thank you to your bcoz you all give such a lot of experience and opinion to me. Yes, we need to think a lot before do something. Yes, i am lazy, but i too study the plan b4, just may be not to detail.

This is year 2008, the old thing sometime cant work. If you really wan to argue, there will be a lot of things.

Dun make the life suffer. And, most of the people become rich not because how good they save the money but it is how good they use their saving make money for them. How many of you become very rich because just your saving?

build the foundation and then ... fly~~ If you fail, just mean that, you are not good enough.

Based on what, you claim that, after insurance, i still not able to save 10 - 15%? i already mention i have the increment and of course i will have more saving as my increment is over 20-30%.

Yes, i know very little about the personal finance and i never assume anything as what you say.

Earn, save, invest. -> this is everyone know's fact. Like chinese say, "who do not know your mother is a ladies? " Work hard is a must to gain better income. I am talking about the thing over the scope.

Your post is different from what i learn from the personal financial advisor. hey dreamer, why i cant listen to who is professional.

i might be foolish... but thank, i will remember you when i have more money.
the min is guaranteed. However, the max is not. Why? Because it is a livestment link, it can gove you more return compare to Life insurance(fixed 4~5%). U wan more, then u need to take the risk.