your statement 1 is assume something must happen,then even you buy 10 million coverage will still not be too much.

your statement 3,not just dreamer can,by carefully planning and implementing earning,i and a lot lyn members also can do that.

'

QUOTE(dreamer101 @ Dec 26 2008, 11:54 PM)
lin00b,

I disagreed with that. You are missing ONE important parameter in the consideration.

1) How much coverage do you NEED??

It is a WASTE of money to buy more insurance coverage than you need. You are throwing money away.

The coverage need to be

A) High enough so that it actually helps when the incident happen.

B) Low enough so that the premium is affordable.

In general, 10 x Annual earning is the MAX life insurance that you should buy. Because life insurance's premium above 200K is so high, you may need to lower that too.

2 X Annual earning is the minimum life insurance that you should look at.

So, the RIGHT coverage is usually between 2 X Annual earning to 10 X annual earning and 200K or below.

Most people buy TOO MUCH life insurance in Malaysia.

<< "perhaps a better way of looking at it is how much %age of your total wealth it is paying out vs how much %age of your cashflow it is consuming?">>

Using that kind of formula for typical people in Malaysia will ended up buying TOO MUCH life insurance.

Dreamer

when dreamer suggest max insured for life insurance is 10x yearly salery,Here is what you say in post 190:


'1. why not have more than what you need so your dependent can have more buffer/freedom to do what they would like to do? like start a business perhaps.'

this is assuming something must happen,make your family become rich if getting insurance pay is like gambling,so i say,if you know something bad must happen,even buy a 10 million coverage are not too much.but if nothing happen,you are burden your current living.

you want higher coverage than dreamer suggest,however,how could you use 5% salery to buy that coverage?just a term life equilvalent to your 10 years salery may cost more than 5% of your total yearly salery.

This post has been edited by athlon 11: Dec 31 2008, 11:33 PM

senior dreamer,i will not suggest to buy a pure critical ill insurance in Malaysia,this kind of 1d insurance only pay if get CI,and they are not cheaper than 3d(death,tpd and Dread desease)insurance in Malaysia.

This post has been edited by athlon 11: Dec 31 2008, 11:47 PM

this should not be an accuse,if a sales person have good moral value,he will tell his custumer the weakness of his product too,he can say in a proper way like engineering is a good choice for student who like maths,instead of straight saying 'your maths is too sucks,engineering is not for you.'

i agree now a lot custumer are smart,however,we as sales person can not assume all our custumer are smart so no need to teach them ,as insurance planning are part of financial planning too,we do need to make sure the insurance premium are not burden our custumer too.anyway,i think you will help your custumer to plan this too.

1)there is different between tell them all ,and tell them what they should know.

2)tell them all maybe makes people sleep,but basic things like what is coverad,what no covered,how much is coverage,and help them calculate is this plan affordable...this basic things is a must do for a good moral insurance agent.

3)for those want to buy insurance,you may use statement 2 as a check list to ask your insurance agent too.