Tuesday, November 16, 2010

Insurance. Have you done your homework?

Most people my age would have owned at least one or two insurance policies, whether sold by walk-in agents or their relatives/friends working as agents. Not me. Why? Simply because I never knew the value of insurance prior to this. Too young, too early. And I don't have kids, or never will..LOL

Not that I had never encounter near-death situations in my life before. In fact, there were quite a few. Considering this, I gave insurance a deeper thought recently when my ex-classmate tried to persuade me to buy policy from him...oh well..

As with any other big item purchases or redundant payments eg mortgage/insurance, I think its always good to do some homework before jump into the bandwagon. At least you don't get coaxed into unnecessary expenses or simply get conned by unscrupulous people.

So here im just going to share some information I found off the net regarding insurance. As usual, do your own homework and research. Isn't it ironic that we deal with money matters everyday and yet our education system never teach us about money? :D

Life insurance. The general overview.

Types of insurance benefits

Traditional insurance VS Investment-linked

Term or Whole-life?

More on TERM

After checking out the sites, I guess I roughly know what plan is more suitable for me now. Im sure you would too. There is no such thing as the best policy, only the one that suits you most :)

Btw, women can insure their boobs and legs...

What about men then? LOL..

Happy holiday and Selamat Hari Raya Haji to those not working tomorrow! Cheers!


[SK] said...

i think i've got all sorts of insurance already.. savings, life, medical, investment, PA.. sometimes too much that i'm really confused of..

Koala Express said...

here some things insurance ppl wont tell u. if a person before age 55 (i think), for watever death, esp due to sickness must go thru autopsy n then only insurance maybe will pay. muslims normally dont allow autopsy due to religion.

traditional insurance is also called term insurance. it has higher coverage n cost less premium compared to others like medical and investment.

do not buy everything into single policy. buy all separate. if a person was diagnosed have terminal illness, n dat person buy everything in 1 policy, the whole policy will be ceased after insurance payment. if u buy as separate, n due to illness, only the medical will cease n the rest will still be enforced thus u still have the benefit.

most important is you must get a gud agent. otherwise it is hard to find other agent to service you.

remember that insurance is a long term investment which takes above 20 yrs to say that you profit.

medical n any investment type are not able to claim in income tax.

if u r married n u put ur wife as beneficiary, you cannot change anymore, even to ur parents or siblings. make sure u put some1 as beneficiary otherwise it takes yrs for the beneficiary to claim ur insurance n it may perhaps goes to gov.

for medical, do include riders eg hospital bed, medicines, etc... do check how much hospital charges. a medical card doesnt mean its a credit card. everytime u use dat into hospital with claiming the insurance, there's some form of deduction. eg if ur entitled to 30k n 1st time u use 10k, u will left with 20k. so use wisely. normally u shud use company's insurance. do check with ur company. also check if ur company insurance can claim for emergency in hospital. mostly dont as its more cost for the co. u can only claim 1 side.

ok thats my grandfather story. :P my advice is plan ur financial. no kidding.

SynchingZincInc said...

I once heard my friend told off some insurance salesperson:

'How many years already you in this line? How's your reputation? Who knows later you change job/line? How old are you? Healthy or not? Later you fall sick how? You think money easy to earn? I pay you commission@service fee through the insurance and if one day you gone, who is going to take care of my claims? You think I am going to waste my time to shout/follow-up at the insurance company if that is going to happen? Don't waste my time and your time if you are not good in service and trust-able. Got anything else to say? I want to know what can you offer me.'

I was speechless and the insurance salesperson almost paralyzed, in tears. That crazy friend of mine was from the kiasu-clan. He eventually told me the technique was handed down by his grandfather..LMAO

Insurances are a fact of life and here to stay. My mum's the one who actually made the arrangement and payment. I should start somewhere soon as age is catching up XD


blue said...

@SK: wow...what a precious life you have! I can imagine how many millions your beneficiary can expect to get should something untoward happens to you haha....As a guide, the millionaire Azizi Ali advises not more than 5% of your take home pay for insurance.

@koala: as usual, thanks for sharing the info, mate. Thats putting money in our pocket rather than grandfather story, haha....but are you sure about the autopsy part? I thought as long as the doc certified your cause of death as something claimable should be enough already? Im not sure myself..

@Helix: woah...your friend really like shooting the agent with M16 wor..."永不超生"!! LOL..
well..i guess your friend's grandpa had some bad experience with insurance before. There are some horror stories of people who fail to claim anything when catastrophe occurs, even while having a few policies! Bottomline is do one's homework diligently, read the fine prints before signing on the dotted line and find a good agent!

..and welcome to the club! :P

shane said...

all those comments can become a post ady XD
er..insurance..guess i only have life insurance.not paid by me one ofcos..or can be said nt yet :)

Gratitude said...

Wow, you prolly have more knowledge than the half-baked insurance agents. Remembered how an ex-schoolmate tried to pressure me into buying a policy too. He basically tried to sell insurance as a forced savings. Failed miserably!

Thanks for this great share. ^_^

blue said...

@shane: hey how are you? surely more handsome already after the haircut! LOL. Yeah should share knowledge among friends mah..thats how people grow right? :D

Oh you have the best insurance policy of all-FAMA insurance (FAther & MAther)..coverage without paying from your own pocket! :P

blue said...

@anton: This is the age of internet mah..click click click can find information you want already. Not just for surfing pron ya ;P

I think alot of policies nowadays have the savings component, those so-called whole-life and endowment plans. They are good to force you to save some amount of money every month, ASSUMING you do not have the discipline to do so on your own effort.

byronmc said...

Hey.. I've just stumbled upon your blog.. and I've got interested on this post of yours as I am thinking of getting an insurance as well.. I have just started working and now I am indeed having a hard time to decide.. I guess by reading your post and others' comments do give me some more insights..

Thanks..! ^^

blue said...

@byronmc: hi byron! Cant seem to find ur site haha..anyway you're welcomed. Just plain sharing only :)

Chris said...

i also have 3 insurance oredi. hehe..

byronmc said...

Hi blue.. you mean my blog? I know.. the link is bogus.. I am blogging in tumblr.. if you're interested you can visit.. nothing much really.. mc2roog.tumblr.com

blue said...

@chris: i guess u should, considering the nature of your work..u know being in the middle of sky most of your working time.. :P

@byronmc: i cant seem to leave comment there. Saw your macbook battery problem. I just hope my current generation macbook doesnt end up the same..

Ultraman Jino said...

yes do homework before you buy it. at least dont look so noob when talking to them lol ^^

[Jino] - A man's not a man unless he knows how to shoot

blue said...

@jino: haha...i agree..