People always misunderstood between investment and also insurance. The existence of investment-linked policy made the situation more confusing. Here are some guides for you, that you should not buy an insurance policy if …
1. You’re forced by an agent / salesperson
The salesperson or the insurance agent could be your friend. Don’t buy a policy for the sake to please him. Or you don’t want to be disturbed everyday. Remember, all salesperson have their sales quota to be fulfilled. Most of the time they are not giving a professional advice, but they are only preaching their sales pitch and take an advantages upon you. Sad but true.
2. You think insurance is an investment
Don’t buy an insurance as a mean of investment. In other words, you want a return / profits from the policy you have bought. The objective of an insurance is for protection. If you want profits, learn stock market investing or real estate investing.
3. You’re safe forever
Insurance company is not protected by the government. They are doing business. They are making profits and losses. You should always look for a good insurance company that having a good records for a long time.
4. You can’t afford to pay insurance premium
The higher protection you want from the insurance company, the higher premium you have to pay every year. Find a policy that is affordable to you. You should be noted that you may lose your savings forever if you stop pay the premiums to the insurace company. Read the term carefully.
5. You already have enough protection
There are people who are over insured. Don’t get conned by the agent that always make you scared for the worst situation. If the agent is sincere enough, he won’t ask you to buy more policy if he has profesionally analysed your situation. You must be able to say no.
My advice, protect your hard-earned money. You should always be an informed individuals. Control your own financial destiny.
7 Comments
Do not consider insurance as an investment. Im totally against it. Kalau nak invest, masuklah investment vehicle yang lain.
So, for my insurance, saya gabungkan medical benefit di dalam Takaful Link Prudential + Life Insurance. Life Insurance cover RM 1,000,000 for death and RM 500,000 for accident. Tapi still ada hospital benefit RM 150,000 di dalam Takaful Link. Saya minimize investment link dalam takaful walaupun tak ada cara untuk menghilangkannya. Life Insurance tak ada medical benefit, so kena balanced. Bayar RM 300 sebulan tapi dah cover macam2…
Untuk cover life insurance is : Annual income x 10. So, itu adalah kiraan pampasan untuk family untuk cover pendapatan saya selama sekurang2nya 10-13 tahun kalau saya mati. RM 1,000,000 kira ok lah tuh.
Pening Ejen saya, 4-5x jumpa saya dan multiple proposal baru saya agreed … well, Im a fussy guy myself when it comes about money. If you know some knowledge about investment, you are ought to be fussy!
I think it a good info Pak Di and Azwan. Well I always got phone especially from credit card provider said im the luky because i can get the best insurance covarage. Just imagine how much insurance covarge that u need to have if all the insured company blame thier product is good. Hoo ho so this info is good like azwan do calculate and choose the good one. Not only just agree by the phone and you know nothing.. thanks and selamat berpuasa.
taza, we should become fussy like azwan
Pakdi, masalahnya kalau insurance agentnya itu saudara sendiri. It is difficult to say no even if i have insurance already
kalau sedara pun tak bole pakai..baik jgn jd sedara
wow azwan! 1 M coverage! Congrats2
kalau mati… tapi kalau sakit teruk dan tak mati lak…. kena pikir-pikir jugak…. lain ler macam doktor tu… dia boleh rawat diri sendiri….