Apr 4 2008, 05:34 PM
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...
QUOTE(Dyong @ Apr 4 2008, 04:55 PM)
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.
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.
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