Who needs Life Insurance?
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Originally posted by skythewood:
know how insurance works?
they calculate the risk of you getting hurt, which means you claim money.
let's say super high risk job, rope tester for bungee jumping, 1% chance of death per day.
the insurance company will than be williing to pay out up to 90 times the amount you are insured just for 1 day.
let's say got 100 guys buy the plan. and very true to statistics, 1 of the guy die. the insurance pay out 90% of money.
at the end of the day, the insurance company ends the 10%.
now scale up everything, from the time invested, lower the payout rates, and lower the percentage of dying. that is life insurance.
thanks for the info
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Originally posted by Evangel:
parn, besides those compulsory insurance like house or car insurance, your family really never buy any insurance at all?
If you say insurance is for the poor, you are so wrong! Let me name you a few examples.
Rich models are insured for their face, legs etc.
Oil rigs, shipping companies insure their properties from any major damage.
Companies buy huge insurance for their key personals.
Heard of reinsurance companies? They insure insurance companies.
I don't think you need me to tell you the reasons why they buy insurance. I guess you are smart enough to know it.
I don't buy insurance.
Of course there are many people who buys them and that's their own choice. Nobody can stop anyone from buying insurance.
I merely expressed my own opinions about insurance, that's all.
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Originally posted by Evangel:
thanks for the info
well, my post just illustrated that when you buy insurance, chances are, you will not claim your money. sort of like betting in soccer. the bookie always wins.
that's why i don't buy insurance too
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If you don't make a claim, then you could get all your premiums refunded. Doesn't that sounds good to you?
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nope. i can buy condo, rent it out, and get back all the money for the condo, while some other guys premium get stuck with the insurance company. the insurance company than will buy a condo, rent it out, and get all the money back to return to you, while they get to keep the condo. win win!
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That's right, don't spend money on things that depreciate, property is a good form of investments as they have a high possibility of appreciating than insurance.
Once you buy insurance, you already signed off your own death note.
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Originally posted by parn:
That's right, don't spend money on things that depreciate, property is a good form of investments as they have a high possibility of appreciating than insurance.
Once you buy insurance, you already signed off your own death note.
actualy, some people are better off buying insurance. true, money will depreciate, but if they have high risk, and the odds of returns is good, go for it.
there is no one size financial advice. applies to you, may not applies to others...
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true enough. then you just have to earn enough and make sure you can afford the condo. =P
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Originally posted by skythewood:
actualy, some people are better off buying insurance. true, money will depreciate, but if they have high risk, and the odds of returns is good, go for it.
there is no one size financial advice. applies to you, may not applies to others...
Explain why you think some people are better off buying insurance. Which group of people are you referring to? -
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Originally posted by parn:
Explain why you think some people are better off buying insurance. Which group of people are you referring to?i don't have any example at all.
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Originally posted by Kheetat 86:
true enough. then you just have to earn enough and make sure you can afford the condo. =P
be creative.... there are other ways to invest money other than condo...
i can help you, but than i will have to charge you. -
Well, you said that buying condo is a win win situation. whats next?
I can name you a few groups of people, but that will sound too chessy. =-)
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Originally posted by Evangel:
parn, besides those compulsory insurance like house or car insurance, your family really never buy any insurance at all?
If you say insurance is for the poor, you are so wrong! Let me name you a few examples.
Rich models are insured for their face, legs etc.
Oil rigs, shipping companies insure their properties from any major damage.
Companies buy huge insurance for their key personals.
Heard of reinsurance companies? They insure insurance companies.
I don't think you need me to tell you the reasons why they buy insurance. I guess you are smart enough to know it.
Are you sure parn is smart enough to know all these things??? I will be surprised she has any knowledge of all these things.
haha... this is really Joke of the Month!
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Originally posted by skythewood:
nope. i can buy condo, rent it out, and get back all the money for the condo, while some other guys premium get stuck with the insurance company. the insurance company than will buy a condo, rent it out, and get all the money back to return to you, while they get to keep the condo. win win!
Good way of investing. But then you will have to insure your condo too. Though this falls under General Insurance and not Life Insurance, it still follows the simple reason why people need Insurance. -
Originally posted by parn:
Well, if insurance isn't a scam, then could you tell me how many times does a person actually need to make a genuine claim in their lifetime?"Insurance is there to provide an income for your daily expenses when you are unable to earn an income due to illness or disability. Its main purpose is not there to provide you with your dental and optometrist." -------> Unfortunately, this is the fear factor that insurance companies used to exploit common people to sign up for their policies. And how much INCOME will actually be covered/payout by the insurance companies? And how will the payout actually helps the claimant? I would like to see real living stories of claimant coming out in the public and promoting the real benefits of insurance cos it is really beneficial to them.
"You mean you can claim $100 000 because you are short-sighted? or pay for your spectacles and lasik?" ----> Once again, this is an entirely wrong concept that insurance companies are trying to project themselves to the public. Tell me it isn't true that people buy insurance because of the promised high payout in any case of an unfortunate event in their lives? If exploiting on people's fear and greed isn't strong enough to justify insurance as a scam, then do you even understand the meaning of scam?
People should be smart enough to know they were being exploited upon their fear and greed.
Moreover, if insurance were that good, you wouldn't need to come here and try to find out the mindset of people who aren't getting scammed so that their premiums could supplement your salary for the next 2 years?
The fact that insurance has already projected the wrong image from the very beginning and it's too bad that some people DO possess a mind of their own and realise that insurance were a scam to begin with.
Ohh...one last thing, insurance are bought and sold mostly to people who are POOR.
a person with a normal life insurance without any riders will be able to make at least 1 claim during the life time. apparently u oso do not know that not only is ins for the poor to create instant asset upon inception of policy, but also act as leverage dollars for big companies.
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Originally posted by skythewood:
nope. i can buy condo, rent it out, and get back all the money for the condo, while some other guys premium get stuck with the insurance company. the insurance company than will buy a condo, rent it out, and get all the money back to return to you, while they get to keep the condo. win win!
prob is..condo requires a much bigger start up sum of money den ins...
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Originally posted by domonkassyu:
prob is..condo requires a much bigger start up sum of money den ins...
i agree. go invest something else. -
Insurance is good for a start. Everyone needs a basic coverage. Even your condo needs one. Does it mean that your life has a lower value compared to the condo?
It is not expensive to have a insurance at a young age. Is just how different people look at it. Only when they need it, then they will buy.
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Hospital Insurance (The importance of it)
If you’ve ever been sick or injured, you know how important it is to have health insurance coverage. Health insurance pays for things big and small, from a lab test that might cost $75 to a hospital stay for major surgery that could cost thousands of dollars. It gives you peace of mind of knowing that no matter what kind of care or procedure you or a family member might require, you won’t have to worry about shouldering the cost on your own.
Hospital insurance is one type of insurance you're pretty much guaranteed to use. We all need medical attention from time to time, and some of us need it quite frequently. When care is needed, you want to focus on getting better not on how you're going to come up with the money to pay your medical bills. A good hospital insurance plan allows you to focus on what's most important, your physical well being.
Is there anyone who doesn't need hospital insurance? Not really. Even if you're young, healthy and haven't had to see a doctor in years, you never know when you might be involved in an accident or be diagnosed with a serious medical condition. While your health insurance coverage will pay for things that aren't too costly like routine doctor's visits or lab tests, the main reason to have coverage is to have protection against the potentially catastrophic expenses of serious illness or injury.Therefore, it is very important to get a very comprehensive hospital plan. Go and get a hospital plan if you have not. It is very important.
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my daddy oladi got for me.
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I hope you guys do understand that insurance is literally everywhere... the flat/house that you stay, you need to buy fire insurance (compulsory for HDB or if you have a mortgage loan), the car that you drive, also requires insurance, even Medishield that is paid by your CPF, is also a form of insurance.
Insurance are not for poor people but for people with specific needs and different people have different needs. In reality, extremely wealthy people buy quite a lot of insurance (for tax purposes). Some people buy life insurance in case something happened to them, their parents/kids have money to spend. Some people buy medical insurance because its cheaper to die than to be ill.
Financial planning involves planning your finances (or your money). So insurance is just a very small part of it. The depth of financial planning, also depends how much money you have, how much you earn (or can potentially earn). If you earn $2000 a month, then seriously, there is not a lot to plan right? But if you earn $20,000 a month, then you will be worried about taxes you have to pay, if you should buy a condo or invest, and how to maintain your lifestyle when you retired, etc.
There is no necessity to argue if its the right thing or wrong thing to do... because different people have different needs.
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BTW, I am not an insurance agent/financial planner. I just understand the concept of insurance. I am not a supportor for whole life insurance / endowment because I know how it works. Will consider term insurance if I really have a need (but I dont have one, so too bad).
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I know of people who will be more than happy to explain insurance to you.
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haha. Who?