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It has been said that insurance is like a form of gambling – that if nothing happens to you, you will get back little or nothing. This I disagree because gambling creates risk that was not there in the first place. On the other hand, insurance transfer financial risks that is already there from the onset. Ironically, not being insured is gambling. … [Read more...]

Possible financial lost that will cause hardship to a single person (assuming no dependents and no liabilities) are: Lost of income due to disability; High medical bill due to hospitalization; High expenses due to critical illnesses … [Read more...]

Possible financial lost that will cause hardship to parents will be: High medical bill due to hospitalization of the juvenile; and High expenses due to critical illnesses of the juvenile. For juvenile, it is important to note that many insurers exclude the whole life critical illness that originates from congenital diseases. Some have a waiting period of the first 7 years of the child’s … [Read more...]

Investment linked policies (ILPs) provides you with life insurance coverage which depends on the investment performance of the funds chosen. At older age, the cost of insurance can easily exceed the premium. If this happens, the insurer will sell the investment to pay for the cost of insurance. Such regular withdrawal of the investment will deplete the cash value. The depletion is further … [Read more...]

You should spend as little as possible of your salary in insurance. Get sufficient coverage at the lowest cost is my advice. Therefore it is important to source for the most cost competitive cover. … [Read more...]

Most people spent huge amount of money paying insurance premium but actually they are underinsured because they bought "junk" policies. You should examine your needs and source for the solutions. In most cases, people look at the "solutions" and try to fit their needs. This is the wrong way and almost guarantees huge premium into junk policies. You may like to know that the pricing of insurance … [Read more...]

Many employees are covered under their employer's group insurance. If that is the case, many employees do not feel the need to get additional insurance for themselves. The policyowner of the group insurance is the employer. The employee is  merely the life assured with no legal rights to the contract. The master contract can be terminated either by the employer or by the insurer. Moreover, the … [Read more...]

Endowment policy is suitable for the individual who is conservative in risk appetite and cannot take risk. In addition, if there is a purpose which imposes on the requirement that no risk can be made, than an endowment policy is recommended. For example, tertiary education can be expensive and yet cannot be delayed once the child reaches certain age regardless of whether does the parents have the … [Read more...]

An insurance product is considered unsuitable if it meets one of the two criterions: The products does not meet one’s needs OR The product meets one’s needs but there is an alternative product that is significantly superior in terms of cost or benefits or both. The keyword is “significantly superior.” Marginally superior is not counted. … [Read more...]