Sunday, August 23, 2009

My View On Ideal Insurance Package

Risk management is the first thing human would have to plan especially in this modern world. Even newly born babies have s couple policies bought by their lovely parents. In my point of view, I would need these coverage on my life
1. Medical
A medical card can be your life-saving tool during emergency event. For the lower class family, their usually living without credit card or having excessive cash in bank. A medical card can ensure me eligible for immediate treatment.
2. Mortal
My family deserve the coverage of losing me. When i am no longer able to provide financial security to my family, the life insurance coverage help to provide food and shelter to my love ones. Well, the coverage on my life should increase in tandem with income. If i afford the premium, i would at least have RM500,000 coverage on my life. (haha...only if)
3. Permanent Disability
Usually permanent disability regard as TPD. Well, it comes in a package with death. Which mean that when i acquire RM500,000 coverage in mortal, i'd also entitle to RM500,000 of TPD coverage. Whichever come first, me family would at least pass through the hard time.
4. Critical Illness
When i am sick, my family suffer as well. 36 dread diseases coverage seem to be obsolete. Since the insurance companies earn so much, i think they should increase the coverage to at least 48 or more number of diseases at the same premium.
5. Personal Accident (PA)
This is what i fear the most. Whatever activities we engage in carrying risk. For example, slipped on the floor during bath, injury in workplace, fell into the drain, and etc. So, personal accident enable us to get compensation for unfortunate event. One most vital point to buy personal accident is in the word "accident", the terms and condition for entitlement on compensation between PA and PDA is alot different. I will discuss it next time why it is different. (Cpmparison between PA and TPD)
6. Endowment (Savings for retirement)
Retirement fund from insurance is perhaps the smallest portion of retirement income for my portfolio. Since the cash value exist for some insurance policies, i will get back those monies plus some return if nothing happen to me.

If i am rich enough, then i am able to pay for anything in times of difficulties. The most important thing is to make everything appear affordable to me rather than scaring of uncertainty. However, personal risk management have to be handle properly before reaching the rich status (sorry, is true rich status) =).
All these is what i think, feel free to drop comment to me on your insurance planning. We can share opinion together.

+ I am also an AIA authorized agent, kindly leave me a comment if you have any question regarding insurance.


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