Life and disability insurance is logic. It's about common sense for people who have the right mind.
Like I said before, not everyone need insurance but everyone can benefit from insurance.
If you still thinking if you need it or not, here are the rule of thumbs:
1. If you know you have a debt (house loan, car loan, education loan, credit card loan, etc) that YOU CANNOT pay if you suddenly cannot work, then you MUST have insurance.
This is common sense right? Do you agree? It's because no matter what happen to you, the debt still have to be paid. It's not going to disappear suddenly. If you CANNOT pay because you cannot work, your family have to pay for it. If you passed away, your family still have to pay for it.
That's why it is a MUST for insurance if you are in the above scenario. There is no other way around it.
If you still don't want to get it, sooner or later if something happen, your family will be the one left with the debt. If you are happy with this kind of situation, there is something wrong with you.
2. If you know that you and your family will struggle to pay for the daily living expenses if you suddenly cannot work or passed away, then you MUST have insurance.
You as the breadwinner is important. Not just to your family but to your self as well. You are working and earning an income to pay for the expenses and also to save. Can you imagine if you suddenly cannot work or passed away, how long the savings going to last you and your family? A few weeks? A few months? A few years maybe if your savings are good.
Now, as a responsible family man, isn't it good if you can provide more for your self and your family if something happens to you? To make sure that the living expenses are met. That would be wonderful right?
I think these 2 are the most important check list for you if you are still thinking about getting that life and disability insurance.
It's really about common sense. Nothing else. If you have the right mind, you should know what to do.
You can give any reasons in the world not to buy that insurance, but if you know that you fall under the 2 categories above, you are just plan foolish.
Cheers! Have a great day.
Labels:
Miscellaneous
Have a merry Christmas and a good new year
Hi folks,
It's almost at the end of the year. How was your past 1 year? Have you achieve what you want to achieve?
To those who procrastinate and never plan, do you realize you have just lost 1 year of potentially getting good return? Now you are late by 1 more year....again.....
Procrastination will kill your dreams and goals.
That's why start the new year with a new mind set so that you can be closer to your goal.
Start a solid and good saving plan and I can guarantee you that end of 2013 will be much better than your 2012.
I also know that most of you may get your bonuses at the end of the year, that's why it is a good time to set aside some of that and put it in a saving plan.
A good saving plan will ensure you that your money will grow faster and you can enjoy the return year after year for whatever you want. Whether it's holiday, gadget, dining, etc.
So do it right, don't procrastinate again. Putting all your money in a bank is one of the worst way to save. Diversify and ensure that your money is not eaten by inflation year after year.
Cheers! Have a good holiday and be happy. See you guys in January 2013.
It's almost at the end of the year. How was your past 1 year? Have you achieve what you want to achieve?
To those who procrastinate and never plan, do you realize you have just lost 1 year of potentially getting good return? Now you are late by 1 more year....again.....
Procrastination will kill your dreams and goals.
That's why start the new year with a new mind set so that you can be closer to your goal.
Start a solid and good saving plan and I can guarantee you that end of 2013 will be much better than your 2012.
I also know that most of you may get your bonuses at the end of the year, that's why it is a good time to set aside some of that and put it in a saving plan.
A good saving plan will ensure you that your money will grow faster and you can enjoy the return year after year for whatever you want. Whether it's holiday, gadget, dining, etc.
So do it right, don't procrastinate again. Putting all your money in a bank is one of the worst way to save. Diversify and ensure that your money is not eaten by inflation year after year.
Cheers! Have a good holiday and be happy. See you guys in January 2013.
Labels:
Insurance Talk
Money making machine
Hello people, long time no see. I hope you are well and have become more aware and better in doing your financial planning.
Now, my work involves in seeing a lot of people, to advise them so that they are in a better place financially. But every now and then, I get to see people who cannot see or cannot accept that insurance planning is one of the most important tool in financial planning.
Risk management to me is the most fundamental in everyone's planning. But sadly, not many people can see that.
Everyone actually knows how important insurance is, but because they think all the unfortunate events will not happen to them, they put insurance as the least importance in their priorities.
Funny thing is if I give them this question, everyone's answer is the same.
From nostradamus2012.com
"If you have a money making machine at home that will give you money everyday and will keep increasing in value year after year and give you and your family more money, will you insure/protect it as best as you can?"
EVERYBODY answer YES! It's because they want to make sure that the machine can keep working and give them money everyday. They do not want the machine to stop working and if it brake downs, they want to make sure that the insurance will continue give them money while the machine is being fixed.
Now many of these people forget that the machine is actually themselves. They are the one that make money everyday and keep increasing in value everyday. But the difference is, they forget or they do not want to insure themselves because they think nothing bad can happen to them. Sorry to say, the facts are different than what you think.
It does not matter what you think, bad things happen everyday. Just open the news and you can see it.
So be true to yourselves. You know that many of you need it. When I ask you if you want to insure the machine, you said yes. Then why don't you insure yourselves? I think you are worth far more than that machine.
Cheers! Have a great day.
Now, my work involves in seeing a lot of people, to advise them so that they are in a better place financially. But every now and then, I get to see people who cannot see or cannot accept that insurance planning is one of the most important tool in financial planning.
Risk management to me is the most fundamental in everyone's planning. But sadly, not many people can see that.
Everyone actually knows how important insurance is, but because they think all the unfortunate events will not happen to them, they put insurance as the least importance in their priorities.
Funny thing is if I give them this question, everyone's answer is the same.
"If you have a money making machine at home that will give you money everyday and will keep increasing in value year after year and give you and your family more money, will you insure/protect it as best as you can?"
EVERYBODY answer YES! It's because they want to make sure that the machine can keep working and give them money everyday. They do not want the machine to stop working and if it brake downs, they want to make sure that the insurance will continue give them money while the machine is being fixed.
Now many of these people forget that the machine is actually themselves. They are the one that make money everyday and keep increasing in value everyday. But the difference is, they forget or they do not want to insure themselves because they think nothing bad can happen to them. Sorry to say, the facts are different than what you think.
It does not matter what you think, bad things happen everyday. Just open the news and you can see it.
So be true to yourselves. You know that many of you need it. When I ask you if you want to insure the machine, you said yes. Then why don't you insure yourselves? I think you are worth far more than that machine.
Cheers! Have a great day.
Labels:
Insurance Talk
Types of insurance plans
As you know, there are many insurance plans out there in the market. Sometimes, it make people confuse. Here I will explain to you in brief many of the insurance plans that you need to know. I will not explain all, because there are too many. So we will just stick with the core plans that you should know and may consider. There are only 5 plans that I think are important.
Remember! Even if the type of insurance plan is the same, each company have their own definitions and their own terms and conditions. So even if you are looking at the same insurance plan, the way the plan work and the way you can claim will be different for each insurance company.
So let's start.
1. Life insurance.
This insurance mainly will be divided into 2 categories, which are TERM plans and WHOLE life plans.
-Term plans are insurance that provide protections with NO cash value. This will be the cheapest life insurance that you can get in the market. You have to pay the premium as long as you want to get covered.
-Whole life plans are insurance that provide protections and at the same time giving you cash value (savings), so that you can accumulate for the long term. Which means, in the future if you think that you don't need the coverage anymore, you can surrender the plan and get the cash value that have been accumulated. The premium for whole life plan are more expensive than term plan. But now there are many whole life plans which you can choose the premium terms, example you can choose to pay just 10 years and cover for whole life.
Life insurance mainly will cover: death, terminal illness, major critical illnesses and total permanent disability.
2. Health insurance.
This insurance will take care mainly your medical expenses if you are sick. There are a lot of health insurance in the market and they varies a lot in terms of benefits and premiums.
The most basic health insurance is the plan where it covers you when you are hospitalised (to me, this is most important because when you are hospitalised, it can cost you a big hole in your pocket). But there are health insurance which are very comprehensive where it even covers outpatient benefit, e.g. to see a GP or a specialists (you don't need to be hospitalised to claim), covers pregnancy, covers dental/optical, annual check up, etc.
This insurance is payable as long as you want to be covered. There are no cash value.
3. Accident insurance.
This insurance is like a combination of health and life insurance, BUT you can only claim if it is due to accident. This plan is good to complement your life and health insurance, because this plan will boost your overall coverage and the premium is very affordable and remain the same throughout your life, unlike life and health insurance whereby the premium increases as you get older.
So accident insurance mainly will cover death, total permanent disability and also give medical reimbursement.
This plan is also popular to those people whose health is not good anymore and they cannot buy life and health insurance. But since this is an accident plan, they still can buy and at least have some coverage.
This insurance is payable as long as you want to be covered. There are no cash value.
4. Comprehensive critical illness insurance.
This insurance will give you a lump sum payout in case you are diagnosed with one of the critical illness listed. Usually the plan will cover about 30 or more critical illnesses. The most common critical illnesses are cancer, stroke and heart attack.
Now, maybe you are a bit confused. Because if you have been reading carefully, a life insurance plan can also cover critical illness. So why should I get this plan?
It is because in life insurance plan, the critical illness coverage only pays when the insured is diagnosed with major stages of the illness. For example, cancer stage 3 or 4.
But in this comprehensive critical illness insurance, it will cover every stage. So for example, it will even pay for cancer stage 1.
This insurance is payable as long as you want to be covered. There are no cash value.
5. Disability income insurance.
This insurance will give you a monthly payout, usually up to 75% of your monthly income, if you cannot work due to disability or illness. Monthly payout will be payable until you are age 65, which is the retirement age.
I believe your income is important and if it is important, I believe it is worth protecting. This plan will ensure that you can meet your monthly expenses even if you cannot work.
A lump sum cash from your life insurance is a good payout if you are disabled. But many people tend to underestimate their worth when they buy life insurance. For example, people in their 30s who are earning $4500 a month usually only have life insurance maybe $500,000. They think it is already a lot coverage. But if you calculate it, by the time you are 65 years old, you will accumulate about $4 million. So there is a gap of $3.5 million there that you would have earn if you can work.
So this plan will definitely complement your life insurance as the monthly payout will make sure that you get your true net worth.
This insurance is payable as long as you want to be covered. There are no cash value.
So there you are, the top 5 insurance plans that everyone should know about and consider in their insurance planning. I can guarantee you that the above plans will help you in your financial planning.
Again, remember! Even if the type of insurance plan is the same, each company have their own definitions and their own terms and conditions. So even if you are looking at the same insurance plan, the way the plan work and the way you can claim will be different for each insurance company.
Read and understand the above 5 plans. See what you have and see if you have any gaps in your planning. Because all the 5 plans really complement and help each other. If you see any gaps, make sure you cover it. You will not want to fall into the gap and suddenly you cannot claim from your existing insurance plans.
Image from: trackmeback.com
Cheers! Have a great day.
Remember! Even if the type of insurance plan is the same, each company have their own definitions and their own terms and conditions. So even if you are looking at the same insurance plan, the way the plan work and the way you can claim will be different for each insurance company.
So let's start.
1. Life insurance.
This insurance mainly will be divided into 2 categories, which are TERM plans and WHOLE life plans.
-Term plans are insurance that provide protections with NO cash value. This will be the cheapest life insurance that you can get in the market. You have to pay the premium as long as you want to get covered.
-Whole life plans are insurance that provide protections and at the same time giving you cash value (savings), so that you can accumulate for the long term. Which means, in the future if you think that you don't need the coverage anymore, you can surrender the plan and get the cash value that have been accumulated. The premium for whole life plan are more expensive than term plan. But now there are many whole life plans which you can choose the premium terms, example you can choose to pay just 10 years and cover for whole life.
Life insurance mainly will cover: death, terminal illness, major critical illnesses and total permanent disability.
2. Health insurance.
This insurance will take care mainly your medical expenses if you are sick. There are a lot of health insurance in the market and they varies a lot in terms of benefits and premiums.
The most basic health insurance is the plan where it covers you when you are hospitalised (to me, this is most important because when you are hospitalised, it can cost you a big hole in your pocket). But there are health insurance which are very comprehensive where it even covers outpatient benefit, e.g. to see a GP or a specialists (you don't need to be hospitalised to claim), covers pregnancy, covers dental/optical, annual check up, etc.
This insurance is payable as long as you want to be covered. There are no cash value.
3. Accident insurance.
This insurance is like a combination of health and life insurance, BUT you can only claim if it is due to accident. This plan is good to complement your life and health insurance, because this plan will boost your overall coverage and the premium is very affordable and remain the same throughout your life, unlike life and health insurance whereby the premium increases as you get older.
So accident insurance mainly will cover death, total permanent disability and also give medical reimbursement.
This plan is also popular to those people whose health is not good anymore and they cannot buy life and health insurance. But since this is an accident plan, they still can buy and at least have some coverage.
This insurance is payable as long as you want to be covered. There are no cash value.
4. Comprehensive critical illness insurance.
This insurance will give you a lump sum payout in case you are diagnosed with one of the critical illness listed. Usually the plan will cover about 30 or more critical illnesses. The most common critical illnesses are cancer, stroke and heart attack.
Now, maybe you are a bit confused. Because if you have been reading carefully, a life insurance plan can also cover critical illness. So why should I get this plan?
It is because in life insurance plan, the critical illness coverage only pays when the insured is diagnosed with major stages of the illness. For example, cancer stage 3 or 4.
But in this comprehensive critical illness insurance, it will cover every stage. So for example, it will even pay for cancer stage 1.
This insurance is payable as long as you want to be covered. There are no cash value.
5. Disability income insurance.
This insurance will give you a monthly payout, usually up to 75% of your monthly income, if you cannot work due to disability or illness. Monthly payout will be payable until you are age 65, which is the retirement age.
I believe your income is important and if it is important, I believe it is worth protecting. This plan will ensure that you can meet your monthly expenses even if you cannot work.
A lump sum cash from your life insurance is a good payout if you are disabled. But many people tend to underestimate their worth when they buy life insurance. For example, people in their 30s who are earning $4500 a month usually only have life insurance maybe $500,000. They think it is already a lot coverage. But if you calculate it, by the time you are 65 years old, you will accumulate about $4 million. So there is a gap of $3.5 million there that you would have earn if you can work.
So this plan will definitely complement your life insurance as the monthly payout will make sure that you get your true net worth.
This insurance is payable as long as you want to be covered. There are no cash value.
So there you are, the top 5 insurance plans that everyone should know about and consider in their insurance planning. I can guarantee you that the above plans will help you in your financial planning.
Again, remember! Even if the type of insurance plan is the same, each company have their own definitions and their own terms and conditions. So even if you are looking at the same insurance plan, the way the plan work and the way you can claim will be different for each insurance company.
Read and understand the above 5 plans. See what you have and see if you have any gaps in your planning. Because all the 5 plans really complement and help each other. If you see any gaps, make sure you cover it. You will not want to fall into the gap and suddenly you cannot claim from your existing insurance plans.
Cheers! Have a great day.
Labels:
Insurance Talk
The consequences
Hi everyone, it's been about 2 weeks from my last post. I have been busy. But I'm happy that I managed to help more people do their insurance planning and they are now in a better financial situation and most importantly, they have peace of mind.
I felt very grateful that I met people who really do love and care for their families. Not like some people who just talk but never plan. These people that I met, they DO IT, they PLAN, they don't just talk. They show their love to their families through action.
In life, things can happen unexpectedly. A lot of things is out of your control. An illness can strike anyone, whether you are healthy or not, young or old. An accident as well, it can strike anyone. If you don't believe me, just open the newspaper. Everyday I guarantee you will see news that you won't expect. For example, people walking on the pedestrian got hit by a car that is out of control, passenger in a taxi on the way to her home suddenly got hit by a Ferrari and died, a man died during soccer match, a young male athlete died after a marathon and so on and on and on.
That is why, never take your life for granted. By the grace of God, you are still here now in this world, alive.
My motto in life is "Always dream, expect and strive for the best BUT always prepare for the worst."
I can tell you that if people never prepare for the worst, the world is doomed.
Examples:
- People said they will never get sick. So we don't need to build hospital and train people to be a doctor. Can you imagine if suddenly you got sick or got accident and there is no hospital or doctor to help you?
- People said their home is safe, there is no robber or murderer. So we don't need police station and policemen. Can you imagine if suddenly you encounter a threat and no policeman to help you?
- People said there will be no fire striking homes or factories. So we don't need fire station and firemen. Can you imagine if your house suddenly got fire and there is no firemen to help you?
To me, people who don't prepare for the worst are just plain foolish and being ignorant.
It is the same for insurance, it's a tool to transfer your risks and prepare for the worst (especially for people who are low to middle income earners).
Can you imagine if you get sick and have no health insurance?
-You may be postponing going to the doctor.
-You may delay the treatment because you don't have enough money.
-Statistics have shown that people with no health insurance will die younger, simply because they cannot afford the treatment that they should get.
-Of course you may sell the house, sell the car, borrow from people, etc to raise money for treatment.
-Then you will become bankrupt.
Can you imagine what happen to your family if you are the breadwinner of the family and you passed away early and you have no life insurance?
-Your spouse will have to find work.
-Continue to pay all the existing debt (such as the house loan, car loan, etc).
-Your kids may have to be taken care by someone else, maybe the grandparents.
-Your spouse will lose the quality time with the kids.
-If your parents are also dependent on you, that means your spouse also have to keep providing for your parents.
Can you imagine if suddenly you cannot work due to disability or illness and you have no disability income insurance?
-You will lose your income.
-Your expenses will go up because you are disabled and you need a care taker to help you get around the house.
-Your spouse will have to find work.
-Your kids will need to be taken care of by the maids maybe.
Just imagine it. Feel it. What will your family think about you if you as the head of the family never plan? You will leave them with a lot of debts, hardships and financial troubles because you are suddenly not around to provide for them.
Be the person that you should be, a responsible person who truly care for your families. I know most of you have some sort of insurance, but come on, a $100k or $200k life insurance policy is not enough. You think that amount of money enough to provide for your family, enough to pay all the existing debt, enough to send your 2 kids to good universities, etc?
You should know that an average person who earn let say just $3500 a month will accumulate at least $3 million by the time he is age 65. That is your real worth! Your financial worth is not $100k or $200k, it's that $3 million! So plan properly!
I tend to ask my client, which one is easier, to pay a premium of let say $2,000 to get a $3 million life insurance or to find $3 million when something unexpected happen to you? To me, it's definitely easier to pay $2,000 now rather than finding $3 million when I or my family need it. What about you? Which one is easier for you at this time?
Many times you will think paying $2,000 is hard, am I right? But if you think that is hard, try imagine how can you get $3 million when you really need it. I can guarantee you that it's damn sure harder than paying $2,000.
Cheers! Have a great day.
I felt very grateful that I met people who really do love and care for their families. Not like some people who just talk but never plan. These people that I met, they DO IT, they PLAN, they don't just talk. They show their love to their families through action.
In life, things can happen unexpectedly. A lot of things is out of your control. An illness can strike anyone, whether you are healthy or not, young or old. An accident as well, it can strike anyone. If you don't believe me, just open the newspaper. Everyday I guarantee you will see news that you won't expect. For example, people walking on the pedestrian got hit by a car that is out of control, passenger in a taxi on the way to her home suddenly got hit by a Ferrari and died, a man died during soccer match, a young male athlete died after a marathon and so on and on and on.
That is why, never take your life for granted. By the grace of God, you are still here now in this world, alive.
My motto in life is "Always dream, expect and strive for the best BUT always prepare for the worst."
I can tell you that if people never prepare for the worst, the world is doomed.
Examples:
- People said they will never get sick. So we don't need to build hospital and train people to be a doctor. Can you imagine if suddenly you got sick or got accident and there is no hospital or doctor to help you?
- People said their home is safe, there is no robber or murderer. So we don't need police station and policemen. Can you imagine if suddenly you encounter a threat and no policeman to help you?
- People said there will be no fire striking homes or factories. So we don't need fire station and firemen. Can you imagine if your house suddenly got fire and there is no firemen to help you?
To me, people who don't prepare for the worst are just plain foolish and being ignorant.
It is the same for insurance, it's a tool to transfer your risks and prepare for the worst (especially for people who are low to middle income earners).
Can you imagine if you get sick and have no health insurance?
-You may be postponing going to the doctor.
-You may delay the treatment because you don't have enough money.
-Statistics have shown that people with no health insurance will die younger, simply because they cannot afford the treatment that they should get.
-Of course you may sell the house, sell the car, borrow from people, etc to raise money for treatment.
-Then you will become bankrupt.
Can you imagine what happen to your family if you are the breadwinner of the family and you passed away early and you have no life insurance?
-Your spouse will have to find work.
-Continue to pay all the existing debt (such as the house loan, car loan, etc).
-Your kids may have to be taken care by someone else, maybe the grandparents.
-Your spouse will lose the quality time with the kids.
-If your parents are also dependent on you, that means your spouse also have to keep providing for your parents.
Can you imagine if suddenly you cannot work due to disability or illness and you have no disability income insurance?
-You will lose your income.
-Your expenses will go up because you are disabled and you need a care taker to help you get around the house.
-Your spouse will have to find work.
-Your kids will need to be taken care of by the maids maybe.
Just imagine it. Feel it. What will your family think about you if you as the head of the family never plan? You will leave them with a lot of debts, hardships and financial troubles because you are suddenly not around to provide for them.
Be the person that you should be, a responsible person who truly care for your families. I know most of you have some sort of insurance, but come on, a $100k or $200k life insurance policy is not enough. You think that amount of money enough to provide for your family, enough to pay all the existing debt, enough to send your 2 kids to good universities, etc?
You should know that an average person who earn let say just $3500 a month will accumulate at least $3 million by the time he is age 65. That is your real worth! Your financial worth is not $100k or $200k, it's that $3 million! So plan properly!
I tend to ask my client, which one is easier, to pay a premium of let say $2,000 to get a $3 million life insurance or to find $3 million when something unexpected happen to you? To me, it's definitely easier to pay $2,000 now rather than finding $3 million when I or my family need it. What about you? Which one is easier for you at this time?
Many times you will think paying $2,000 is hard, am I right? But if you think that is hard, try imagine how can you get $3 million when you really need it. I can guarantee you that it's damn sure harder than paying $2,000.
Cheers! Have a great day.
Labels:
Insurance Talk
Win if I die
That is one of the objections why people don't buy LIFE insurance. They said that "I only win if I die, because when I die then the policy will pay out the money."
That's funny to me. Are you saying that you are not going to die? We all going to die, sooner or later.
Whether you have life insurance or not, we are going to die. But if you have life insurance, you know that your loved ones will be provided for. You know with insurance that you instantly prepared enough amount of money so that they can continue living.
It does not matter how much you have in the bank as of now, maybe you don't have much because you just started working. But insurance will immediately give your loved ones the pay out that they need if something happens to you.
More over, there are a lot of insurance plans now that comes with cash value, just like savings. So that when you die, there will be a payout. But if you still living, you can choose to surrender the plan and enjoy the cash value that have been accumulated over the years.
Life insurance payout is a matter of "when", not "if". You cannot say "if" I die, because it's just a matter of "when" we die.
Besides, if you are blessed with a long life until you are old age, are you going to complain that you haven't got the chance to use your life insurance yet? I hope not. I hope you be grateful.
To me, life insurance is a win-win tool to help people to be in a better financial position and to have a peace of mind.
Cheers! Have a great day.
That's funny to me. Are you saying that you are not going to die? We all going to die, sooner or later.
Whether you have life insurance or not, we are going to die. But if you have life insurance, you know that your loved ones will be provided for. You know with insurance that you instantly prepared enough amount of money so that they can continue living.
It does not matter how much you have in the bank as of now, maybe you don't have much because you just started working. But insurance will immediately give your loved ones the pay out that they need if something happens to you.
More over, there are a lot of insurance plans now that comes with cash value, just like savings. So that when you die, there will be a payout. But if you still living, you can choose to surrender the plan and enjoy the cash value that have been accumulated over the years.
Life insurance payout is a matter of "when", not "if". You cannot say "if" I die, because it's just a matter of "when" we die.
Besides, if you are blessed with a long life until you are old age, are you going to complain that you haven't got the chance to use your life insurance yet? I hope not. I hope you be grateful.
To me, life insurance is a win-win tool to help people to be in a better financial position and to have a peace of mind.
Cheers! Have a great day.
Labels:
Education
Funding your child's education
I just read this article in Sunday Times recently. It talked about the different ways of savings toward our children's education fund. I think this is a very important subject. Because many people do not seriously plan for their children, they think it still a very long time until their kids enter university.
Education is expensive! It's true. Even now, it's expensive already. Many students have to take up a student loan because the parents are not able to pay for the university's tuition fee.
If you are a parent your self, I'm sure you want to be able to give your kids the best education right?
If you can, you do not want to burden your kids with debt for their study right?
Then start planning now! Give the best future for your kids if you really love them.
20 years from now, just a local university education which is non-medical course will be about $60,000. If you have 3 kids, you would have to save at least $180,000. I think that is not a small amount of money for many people.
Let me share some quotes from the article which I believe are very important
1. "The key is to plan early and start saving as soon as the child is born".
2. "...when parents start saving earlier, the outlay can be smaller".
3."...with a longer time horizon, there are wider choices of funding vehicles to consider".
As for some of the key instruments for savings are:
1. Fixed deposits in the bank.
2. Endowment plans.
3. Investments : whether it's shares, unit trusts or investment link plan.
Take note that there are pros and cons for each instrument.
E.g. Deposits have limited return due to very low interest rate. Endowment has better return but there are penalty if you surrender before the maturity period. Investments have much more potential for superior return but can fluctuate greatly due to market volatility.
So go and discuss with your financial planner and see what's best for you.
Taken from Sunday Times
Remember this, the longer you wait to save, the less time you will have to save toward your child's education fund and the more money you have to put in. In other words, do not wait! It will be much harder on you and you are risking your child's education.
Cheers! Have a great day.
Education is expensive! It's true. Even now, it's expensive already. Many students have to take up a student loan because the parents are not able to pay for the university's tuition fee.
If you are a parent your self, I'm sure you want to be able to give your kids the best education right?
If you can, you do not want to burden your kids with debt for their study right?
Then start planning now! Give the best future for your kids if you really love them.
20 years from now, just a local university education which is non-medical course will be about $60,000. If you have 3 kids, you would have to save at least $180,000. I think that is not a small amount of money for many people.
Let me share some quotes from the article which I believe are very important
1. "The key is to plan early and start saving as soon as the child is born".
2. "...when parents start saving earlier, the outlay can be smaller".
3."...with a longer time horizon, there are wider choices of funding vehicles to consider".
As for some of the key instruments for savings are:
1. Fixed deposits in the bank.
2. Endowment plans.
3. Investments : whether it's shares, unit trusts or investment link plan.
Take note that there are pros and cons for each instrument.
E.g. Deposits have limited return due to very low interest rate. Endowment has better return but there are penalty if you surrender before the maturity period. Investments have much more potential for superior return but can fluctuate greatly due to market volatility.
So go and discuss with your financial planner and see what's best for you.
Remember this, the longer you wait to save, the less time you will have to save toward your child's education fund and the more money you have to put in. In other words, do not wait! It will be much harder on you and you are risking your child's education.
Cheers! Have a great day.
Labels:
Insurance Talk
Ironic
When people are young and healthy, many do not want to try understand about insurance and they try to be ignorant. Those who understand do not want to buy because they think it is a waste of money. Many of them think that they do not need it since they feel that they are somewhat invincible. So when we try to advise and help them, they scold us.
On the other hand, many people want to get insurance but they cannot because they are not young anymore and they are not that healthy anymore. Ironically, these people are those people who are when they are young, they do not believe in insurance and they hate insurance agent for trying to advise them.
So we got people who are healthy BUT do not want to buy insurance.
Then we got people who are not healthy anymore BUT desperately want to buy insurance.
When we want to help, you refuse our help.
But now that it is too late and you cannot be help already, you ask for our help.
That is why I keep reminding people, insurance is just like a life boat. You get it when you don't need it. You buy your life boat before the ship goes out to the sea. So that when you are in the middle of the ocean and your ship start to sink, the life boat can instantly help you.
Many of you knows the importance of the life boat, but do not want to buy because you think the ship is unsinkable. But sorry to say, a ship can sink and that is a fact.
If you want to buy the life boat only when your ship is starting to sink, I know for sure that you cannot get it because you cannot buy a boat in the middle of the ocean. So you will just have to wait to drown yourself.
It's the same with insurance. Go and get it before you need it. Because when you need it, you may not be able to get it anymore.
If you understand this simple common sense, you know what to do.
God bless.
Cheers! Have a great day.
On the other hand, many people want to get insurance but they cannot because they are not young anymore and they are not that healthy anymore. Ironically, these people are those people who are when they are young, they do not believe in insurance and they hate insurance agent for trying to advise them.
So we got people who are healthy BUT do not want to buy insurance.
Then we got people who are not healthy anymore BUT desperately want to buy insurance.
When we want to help, you refuse our help.
But now that it is too late and you cannot be help already, you ask for our help.
That is why I keep reminding people, insurance is just like a life boat. You get it when you don't need it. You buy your life boat before the ship goes out to the sea. So that when you are in the middle of the ocean and your ship start to sink, the life boat can instantly help you.
Many of you knows the importance of the life boat, but do not want to buy because you think the ship is unsinkable. But sorry to say, a ship can sink and that is a fact.
If you want to buy the life boat only when your ship is starting to sink, I know for sure that you cannot get it because you cannot buy a boat in the middle of the ocean. So you will just have to wait to drown yourself.
It's the same with insurance. Go and get it before you need it. Because when you need it, you may not be able to get it anymore.
If you understand this simple common sense, you know what to do.
God bless.
Cheers! Have a great day.
Labels:
Insurance Talk
Who needs it?
Many people are resistant to insurance planning. Many people think it's evil. Many people think if they buy insurance, they will lose money and some even think if they buy, bad things will start to happen to them.
Of course those of you who are smart knows that all the above statements are FALSE. Insurance is always about facts and figures. Whether you buy insurance or not, bad things still can happen. Insurance is not created because of fear, but it is created because many people need it and it is based on the facts of life.
In life people can get sick, get critically ill, get disability and die. Unfortunately when one of these happens, many people are in financial trouble, thus insurance are born so that people can have financial safety net. People will be in a better financial situation if they do a proper insurance planning.
So who do you think needs insurance? Let's take a look at the checklist below.
1. If you have debts and liabilities, such as home loan, student loan, car loan, credit card debt, etc.
2. If you are dependant on your income, which means you need your salary to survive and pay your expenses.
3. If you have dependants such as your spouse and children and even parents who rely on you, which means if you are not around or unable to work, they will be in a financial distress.
4. If you do not have sufficient savings, which means an illness or disability can get you bankrupt in no time.
Just take a look at the 4 simple questions above. Ask your self. Really ask your self and answer it truthfully. If you are in 1 of those categories, that means you definitely need insurance. If you don't get the insurance now, you may be screwed if something unexpected happens. It's a fact.
If you are the lucky few who are not in any of the categories above, congratulations! That means you have no debt whatsoever, you are not dependant on your income, your dependants are not relying on you and you already have sufficient savings. You may not need insurance! Yup, you may not need it. But I still can tell you that you can even be better off if you have insurance.
Take me for example. I got sufficient savings if I got sick and need to be hospitalised. But it doesn't mean that I want my money to reduce if I get sick. I rather have my health insurance to pay for all my bills. This way, I still retain all my savings and I just need to pay my small insurance premium.
So take control of your finances now, be better in managing it. Build your savings, grow your investment and transfer your risks. Then you will be on your way to financial freedom.
Cheers! Have a great day.
Labels:
Insurance Talk
Why pay more?
Insurance is about transfering your risks. You will only need to pay a small premium to get a relatively huge coverage. Then we will take your financial burden if something unexpected happens.
For example, a 25 years old in Singapore only need to pay about $350 a year to get a $500,000 medical coverage. No matter what, you will never pay premiums more than the coverage. Even as you get older and your premium increases, you will still pay less than the coverage that you get.
To me, that is a good damn bargain! Where in the world can I get $500,000 for $350?
To those who hate insurance, try saving $350 a year and see how long can you save till you accumulate $500,000. That's about 1428 years to save, considering the bank only gives 0.125% interest per year.
So why do you want to save that money your self and take on the risks? Why do you want to pay more when something happens? Isn't that considered foolish?
Take advantage of insurance to make your finances better. Why pay more when you can pay a little and we take on your risk and we cover you at all times?
You never know when you will get sick, no one knows. If you do know, please let me know, I want to ask you to predict the future of everyone.
With insurance, just $350 will give you $500,000 from the first day onward. If you save that money yourself, $350 will still stay at $350 on the first day.
Of course, if you still wish to accumulate $500,000 by saving your self, just remember that it will take 1428 years! Enjoy the journey.
I am happy because I know my money works hard for me. I got peace of mind knowing that I got $500,000 protection.
Are you happy seeing that $350 in the bank? Do you have peace of mind knowing that you only have $350 in the bank? I'm very sure you can imagine what is going to happen to your finances if something unexpected happens.
Cheers! Have a great day.
For example, a 25 years old in Singapore only need to pay about $350 a year to get a $500,000 medical coverage. No matter what, you will never pay premiums more than the coverage. Even as you get older and your premium increases, you will still pay less than the coverage that you get.
To me, that is a good damn bargain! Where in the world can I get $500,000 for $350?
To those who hate insurance, try saving $350 a year and see how long can you save till you accumulate $500,000. That's about 1428 years to save, considering the bank only gives 0.125% interest per year.
So why do you want to save that money your self and take on the risks? Why do you want to pay more when something happens? Isn't that considered foolish?
Take advantage of insurance to make your finances better. Why pay more when you can pay a little and we take on your risk and we cover you at all times?
You never know when you will get sick, no one knows. If you do know, please let me know, I want to ask you to predict the future of everyone.
With insurance, just $350 will give you $500,000 from the first day onward. If you save that money yourself, $350 will still stay at $350 on the first day.
Of course, if you still wish to accumulate $500,000 by saving your self, just remember that it will take 1428 years! Enjoy the journey.
I am happy because I know my money works hard for me. I got peace of mind knowing that I got $500,000 protection.
Are you happy seeing that $350 in the bank? Do you have peace of mind knowing that you only have $350 in the bank? I'm very sure you can imagine what is going to happen to your finances if something unexpected happens.
Cheers! Have a great day.
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