Life Insurance To Buy
From my previous post, you know why we need insurance. Basically, you will need two types life insurance so that any undesired health problems would not affect your family financial, especially if you are bread wider. These two are medical insurance and life insurance.
P/S: In this post, I separate the medical insurance from life insurance to ease my explanation. Actually, medical insurance is under life insurance. Hope it do not confuse you.
Medical Insurance
Medical insurance is so important that it help cover the expenses of hospitalization and surgical due to illnesses or accidents. A critical illness such as kidney failure might wipe out your entire life savings. Imagine the sum consume if you have accident and need to stay in ICU for a month. How much can you afford? Buy it before too late.
Life Insurance
We buy life insurance as a protection against our family. Family living might become a problem if the family breadwinner unable to provide source of income due to disability or critical illness. Life insurance will compensate you a sum if you are unfortunate due to critical illness or disability. You can use this lung sum either on your illness or as to survive your family. There are many life insurance in the market, whole life, term life, endowment, investment-linked and others which I might not know as well.
My 2 Cents
Personally, I think these two insurances are essential in our life and is important part in our financial planning. Any unwanted incident not only cost you extra money yet mess up your financial planning. I had bought my medical insurance, which protect me up to RM 1,000,000. Yes, RM1,000,000. In future, medical fee will be expensive, therefore this sum is just enough. I have not buy life insurance yet. Seeking for one that fit me. I prefer whole life instead of others because what I need is just a basic protection to me and my family. If only I have extra money, I might consider endowment or investment-linked.
Here is a few tips
- Choose the one that guarantee renewable
- Buy a bigger protection as medical fee is expensive in the future
- Look for cashless card that need not you pay any sum first
- Find a responsible agent that really can help you when you are in trouble.
- Pay attention to any limitation of the product, such as age
- For life insurance, you need to know that how much money one family need for the rest of the living if the breadwinner unable to provide any source of income. That is the sum of protection.
It is just some of the things that you need to look for when buy a life insurance. You need do research and compare policy of different company. It is worth to do so as you pay the premium for decades once your decision is made. What insurance have you bought? Do drop by and share yours. 
For life insurance, you may opt for investment-linked policy. This is because it is the policy that allow you to maximize your protection with minimum cost.
I did study the difference between whole-life, term and investment-linked in terms of their protection and return. Due to low premium requirement of investment-linked for good protection, I will be able to have more money for other investment that will generate better return.
What I do is I maximize my protection portion and minimize my investment portion. Therefore, I do not expect to get back anything from investment-linked. To me, it is an insurance expenses (to buy protection) rather than investment. Next, invest your premium savings to get better return. The overall gain will be much better than whole-life.
Go and check it out.
[Reply]
Mrcoolku Reply:
November 30th, 2009 at 10:30 pm
Hi, thanks for your fruitful advices. I will do some research on it and discuss with my insurance agent.
Btw, I have one question here. Since you do not expect any return from investment in investment-linked, then why you bought it? Because of low premium?
[Reply]
LAI SENG CHOY Reply:
December 2nd, 2009 at 8:12 am
Exactly. I bought it due to its feature of low premium with huge protection.
[Reply]
Kong Hui Reply:
April 28th, 2010 at 11:41 pm
Then you should aim for Term Life, not investment link.
Ops! How old are you?
premium for protection in Investment Link in “Natural”, not “level”. The older you gets, the higher the insurance charges. Please check with your insurance agent. I am agent for HLA.
[Reply]