Investment looks for return or yield,or grow money faster.
But insurance is totally different aim.Let this ex-insurance agent
tell u somethings.Its aim is to use small money to freeze your
earning power.In the furture,if something happen,you or
your loved ones can get the benefits or compensations.
Do not looking for higher return from insurance.
In ins,u need protection.Think what will happen if u
can not work three month ago or not around.
It is very simple to protect u and ur family
from illness and accidents.
Why now
1.Your health,employment status,financial status(bankruptcy
hard to buy insurance),decide if u can buy.
Read newspaper than u know many pass away much
younger then u.
2.Try to avoid regret.
If u just gone fast ,u are lucky.If u get a serious illness or
get a serious accident,looking your family suffering
emtionally and financially.Buy then u know u
could avoid the fanancial burden if u had bought insurance.
This would be the greatest pain in your life.
Just a decision can save a lot of pains u leave to
your family.
Are u still around next week ,next month?Can u tell me?
How much insurance I have to buy
3.Twenty years of your salary.No kidding.240 months x
say 3% pa return=7.2months pa.Thats is only 0.6 month per month of
your income if your spouse can earn 3 % return pa from
your 20 years salary compensation.
Wife do not need compensations,only widow needs.
If u ask your wife should u buy insurance,she will say no.
Make up your mind.
What to buy
4.I always suggest buy life plan plus the maximum
5 year convertiable and renewable term rider.
The premium is affordable.
For young guy,price term rider is only about
one fifth to one eighth of life plan.
So,if u buy life plan $20,000 sum insured,
for the same cost u can buy life $10,000 and
term plan $80,000,total $90,000.
Trust me,when ur wife need to collect benefits,
if u leave her some,she would be happier
to receive 90k than 20k.
Renewable mean when the term expire,the premium
will increase but u are still protected.
Convertiable means it can be convertered to life
plan .
Life plan and accidents
6.Do not think every plan cover everything.
Ask ur agent carefully and ask for second opion.
Look for the benefits,not the amount u put in
7.a lot people mix up the CPF they put in is the
benefits.Suppose u put $50,000 into a
investment cum insurance plan,the sum insured may be
only half,say 25,000.u are insured only 25,000.
The 50,000 is already there.
Last question
8.Think what will happen if u
can not work three month ago or not around.
A smart insurance can save your family from
a lot of pains,emotionally and financially.
A rich widow can choose her choice to remarry.
A poor widow is become the choice.
This is your choice,man.