how u all see about insurance?is it important?

Nope, if you have large amount of money set aside for emergencies.

There're many types of insurance in the market, which one are you referring to?

medical card....accident d?

SCENARIO A (ACCIDENTS/ permanent disability INSURANCE)
imagine like this, u got an accident... touchwood.
u not dead ... phew. BUT you are paralysed from waist to leg. Doctors have classified u having permanent disability. u are not eligible to work anymore.

1) what going to happen to ur earning ability ?
U earn RM 2 K a month. RM 24 K a year. who going to pay u for the next ten years ? thats a total of RM 24 K x 10 years = RM 240 K. Dun forget the inflation.
2) if u dun have more income coming, who going to pay for ur expenses ?

SCENARIO B (MEDICAL INSURANCE)
U were involved in accidents or u need to do operations. to reconnect ur hand or ur legs. who going to pay for the hospital bills (RM 10000) ?

If it happen in the midnight around 2am. Where you going to get that much of money ? Bank ?

Think man.

This post has been edited by wingcross: Apr 4 2008, 04:28 PM

so...it is very important lo?then...u think d money will waste ma?
is it expensive?

theres quite a lot of this insurance discussion here, u could try searching for it.

whre discuss about insuran,i cant find anything?

I differ here.

SCENARIO A (ACCIDENTS/ permanent disability INSURANCE)
imagine like this, u got an accident... touchwood.
u not dead ... phew. BUT you are paralysed from waist to leg. Doctors have classified u having permanent disability. u are not eligible to work anymore.

1) what going to happen to ur earning ability ?
U earn RM 2 K a month. RM 24 K a year. who going to pay u for the next ten years ? thats a total of RM 24 K x 10 years = RM 240 K. Dun forget the inflation.
2) if u dun have more income coming, who going to pay for ur expenses ?

IF you have interest/ investment income of 24K per year, you do not need to worry for this.

SCENARIO B (MEDICAL INSURANCE)
U were involved in accidents or u need to do operations. to reconnect ur hand or ur legs. who going to pay for the hospital bills (RM 10000) ?

Yes, if you have 100-200k standby funds, you do not need to worry for this.

If it happen in the midnight around 2am. Where you going to get that much of money ? Bank ?

Yes, credit card cash advance/ ATM and you can withdraw the day after.

Another penny for your thoughts?

You answer is the typical solicitating that normally insurance agent use to sell their products.
What they fail to see is that as your net worth increase, with a substantial amount of liquid cash, one do not need much insurance.

The whole idea of insurance planning is just a subset of your overall financial planning, not everything.

This post has been edited by Dyong: Apr 4 2008, 04:56 PM

OK. It depends on what type of insurance & your individual case. No right or wrong here but depends on your individual needs.

To me, insurance is for protection and talking about life insurance, I don't like plans like those investment-link plan. It just makes newbie confused with the whole issue. Insurnce companies package it this way so most people gets confused!! Buy insurance for protection (whether u need or not only u yourself can tell) and invest the money yourself in whatever instrument u feel comfortable with.

If u refer car insurance, of course u need minimum 3rd party; othwerwise cannot renew road tax. Of course most people buy comprehensive insurance in view of the high stolen car rates.

Then there is professional indemnity insurance, MRTA, house insurance, etc......

Cheers...

I have life insurance (investment type) + Medical card.
RM200/month.

Cant do much with just RM200/month if i'd wan to keep it useless in bank.

I think it is important to have an insurance with medical coverage.

I totally agree with Dyong's words.

Insurance is damned important. I have 4 life policies which cover medical and PA. You must have at least one. My wife and daughter are also insured as well. We never now what would happen in future.

I personally think that medical card is. The medical fees of these days are so expensive. I was admitted for few days and that cost me more than 5K. Lucky I have my medical card to cover that or else

insurance is important only if u got wife and kids

WaCKy-Angel,

<<Cant do much with just RM200/month if i'd wan to keep it useless in bank.>>

This is BS statement. If you do not want RM200/month in the bank, everyone is willing to take it from you. If you loose your for a period of time, you will appreciate the RM200 per month.

Dreamer

u can try prudential prulink with the minimum rm150 per month and add up prusaver to make the bigger surrender value at the end...im doing this type of investment...

if can try to buy investment link types rather than traditional types...there may have major different btw those..so beware before taking any decision...

u need insurance in your finance portfolio if u have some responsibilities for urself or someone else.

u do not need insurance if u r a junky, has no responsibility whatsoever and can die without any effect to anyone and society.

many ppl said if you have a large sum of money set aside then u don't need insurance, this is another BIG MYTH !! Which is very wrong in a good financial planning attitude.

if u have a large money set aside, then u must be someone who do not manage ur money very well.

if u have a large money set aside, then you should use a small portion of it to buy insurance of equal amount, then the rest can be used for other purpose. that way, you have exactly the same amount of money set aside while having all the extra cash immediately.

if u worry the premium you paid and at the end nothing happen so you may lost all of it, then you should go for whole life insurance plan, because you are guaranteed to die one day, and that day someone you appointed WILL get the insurance money, both guarantee.

if u care about how much u urself get back, then get an endowment to force yourself saving.

hope this helps ...

---

Added on April 4, 2008, 11:13 pminsurance can also be used for yourself, ie. medical card, retirement plan or just force saving for ppl who has low self discipline.

if parents are still alive, one should start as early as possible for their parents health and medical fee. by statistic, more than 60% of 35-45 years old men got into financial problems because spending too much money on their parent's medical fee. the rest of the 40% .. their parent die almost instantly with just burial cost ...

insurance is extremely important in a good business and especially if the biz rely on a few key personels.

there are endless application for this little finance tool - insurance. so if one has the misconception it is only needed when u have a family, then all I can say, beware and prepare to pay more because the longer you start a plan, the more costly it gets and the less power of compounding will work for you ...

This post has been edited by mtsen: Apr 4 2008, 11:13 PM

u are not getting the whole pic.

kthxbye. go figure out

I just undergo an endoscopy surgery at assunta hospital.
Cost me around rm1.1k just for checking purpose.
Lucky my insurance covered.
Using GEL medical card here.

Well, different ppl have different thinking. If you think your financial status is way high safe and have a lot to spare if emergency happened, you may not buy.
If you think you are at moderate state and can't afford emergency payroll, why not pay few hundred bucks for an emergency fund (insurance).

Bare in mind also, there is some limit that you can claim from the insurance, particularly medical side. So better check it out before buying it. Yup, medical insurance somehow is quite essential nowadays due to sprilling up of medical cost. But buy appropriate insurance until you can afford, don't overbought insurance until you are not aware of especially for those with tight budget every month one.

Billionaires like Warrent Buffet and Bill Gates probably don't need insurance.
So may be that's true, insurance is not essential and necessary for those really really rich one. One month interest in the bank already worth millions, still want insurance to cover it?