After reading this have to think twice.
He basically told me that if I am a financially sound person, I am throwing my money away on life insurance unless I meet a few strict criteria (young, a relatively low net worth, and young children). This kind of blew me away considering he’s in the life insurance business, but when he broke it down for me, it made a lot of sense. Note that the advice that follows is based on a conversation between friends and shouldn’t be viewed as professional advice and you shouldn’t just follow it blindly without doing your own research, but it is quite interesting and worth sharing.
- unless you are a financial train wreck, you should never buy anything but term life insurance
- if you have no dependents and no spouse, don’t buy life insurance
- the more net worth you have, the less insurance you need
- think about your family’s needs carefully
- when your policy expires, don’t renew it immediately – recalculate
http://www.thesimpledollar.com/2007/06/07/interesting-insights-into-life-insurance-from-an-actuary-how-he-would-buy-life-insurance/
4 comments
Hi, I'm looking for a suitable insurance for my daughter too. Since you've done lots of research, may I know at the end which insurance co/policy did you buy?
Hi Jih Chiun,
If your company have health coverage for your daughter no need to buy.
But if don't have, must but a health card.
The rest is optional.
For education, I go for Skim simpanan ptptn. Now, you can have 6k income tax relief.
If you are not good in investment, investment link insurance is suitable for your daughter.
SO everything depends on how good is your financial literacy.
Life insurance provides for the payment of the sum assured only if the life assured dies within a specified period. If the life assured does not die, the policy ceases and the premiums paid are retained by the Life Insurance In Malaysia.