Yesterday i hear that one of my hubby's friend admitted to hospital for a Kidney operation.
Today, i hear that he will be a kidney dialysis patient for the rest of his life.
Life is very unpredictable and he is still very young (38 years old), he is the breadwinner of the house, have wife and child to depends on him... how is he going to do?
How is he going to pay for his hospitalisation bills?
How is he pay for his kidney dialysis session( 3 session per week)?
will he be able to continue working as hard as he is before to earn more money?
Life is fun and great now but will you carry an umbrella when it is not raining?
Those carry an umbrella with them is looking at "Just in case" it is raining, they are protected from rain. They can take their time continue walking without any worries.
Those who are not using an umbrella are totally unprotected from rain. They keep running running no where looking a shelther. Got drenched and upset...
Which kind of person are you?
Dont wait until last minutes, start planning ahead!!!
April 26, 2010
November 9, 2009
What homework you need to do?
When we choose insurance, we want it to be cost-effective, and we should select the coverage that helps to protect our family in long term financial interests.
Determining which insurance coverage would be most beneficial to you requires:
1) knowledge of your needs
2)An appreciation for uncertainty
3)An inderstanding of the best product alternatives, and
4)Complete objectivity in the decision-making process.
These are very important when you considering buying insurance, if you don't do your homework, finding the right insurance won't be difficult.
Determining which insurance coverage would be most beneficial to you requires:
1) knowledge of your needs
2)An appreciation for uncertainty
3)An inderstanding of the best product alternatives, and
4)Complete objectivity in the decision-making process.
These are very important when you considering buying insurance, if you don't do your homework, finding the right insurance won't be difficult.
How do you know you have enough?
How do a person know he or she have enough coverage?
Let assume a person earning a avearge og $50,000 per annum. In 10 years time, he will be earning half a million $500,000.
Essentially, he is protecting only 10 years of future income that would otherwise vanish if premature death occurs...
Think of long term..
Let assume a person earning a avearge og $50,000 per annum. In 10 years time, he will be earning half a million $500,000.
Essentially, he is protecting only 10 years of future income that would otherwise vanish if premature death occurs...
Think of long term..
What underwriter will look at on your insurance proposal?
When an underwriter looks at your insurance proposal, they will look into several factos:
1) your health problem..
my experience tells me that by the time you reach 45, or now may even earilier some health symptoms may apprear and will hinder your insurance application.
For example, commom health problems such as hypertension.diabetes and high cholesterol levels may cause the insurer to request a higher premium.
For some one who may think he is healthy now, he may not know what will happen to him if he wait for another year..
2) your age
As we grow older, insurance premium will maturally become very expensive. Based on the calculation, a premium will cost $3,000 at age 47 now, if wait until age 50, it will be 45% higher. This is why it is inportant to increase your coverage when you are younger.
1) your health problem..
my experience tells me that by the time you reach 45, or now may even earilier some health symptoms may apprear and will hinder your insurance application.
For example, commom health problems such as hypertension.diabetes and high cholesterol levels may cause the insurer to request a higher premium.
For some one who may think he is healthy now, he may not know what will happen to him if he wait for another year..
2) your age
As we grow older, insurance premium will maturally become very expensive. Based on the calculation, a premium will cost $3,000 at age 47 now, if wait until age 50, it will be 45% higher. This is why it is inportant to increase your coverage when you are younger.
Rather take the premium for something else
Some of my friend would say that they would rather spend the insurance premium into something else.
I will have a different point of view..
For eg. if $3,000 is invested every year for 15 years, at tn annual growth rate of 7%,, i could accumulated approxiamately $75,000.
By paying $3,000 a year in surance premium, should premature death occur in those 15 years, my family will be better off, with the guarantee death benefit frim the insurance. So there is a trade-off between putting off insurance than investing in something else.
But let it be very clear about the role of insurance in personal financial planning.
Insurance serves purely as a protection tools.
I will have a different point of view..
For eg. if $3,000 is invested every year for 15 years, at tn annual growth rate of 7%,, i could accumulated approxiamately $75,000.
By paying $3,000 a year in surance premium, should premature death occur in those 15 years, my family will be better off, with the guarantee death benefit frim the insurance. So there is a trade-off between putting off insurance than investing in something else.
But let it be very clear about the role of insurance in personal financial planning.
Insurance serves purely as a protection tools.
Insurance in a time of uncertainty
I read a article on the Sunday Times (Page 33) on Nov 8, 2009 and would like to share this to whom who cares about their family.
A person at the age of 47 pump in a $1m coverage after review his financial plan.
He realize that in today's environment is highly unpredictable as compared to that 10 years ago. he have 2 teenage girls which are still in school and both will go into tertiaty education in the few years time. Eventhought, he have educationa plan for them, a catastrophic event or another financial crisis could drain my assets ans destroy the best of my invesment plan.
Hence, he decide to pump in $1m of Term coverage on top of his another $1m whole life policy. His annual premium amount to $10,000 per year cover $2m coverage.
By paying the premium, he get to enjoy the coverage as it will step in to meet its obligations should anything untoward happen to him. Most importantly, he know that all the family's financial needs are well taken care of.
Of course, everyone have his/her own budget.. Get yourself cover step by step.. if you care for your family...
A person at the age of 47 pump in a $1m coverage after review his financial plan.
He realize that in today's environment is highly unpredictable as compared to that 10 years ago. he have 2 teenage girls which are still in school and both will go into tertiaty education in the few years time. Eventhought, he have educationa plan for them, a catastrophic event or another financial crisis could drain my assets ans destroy the best of my invesment plan.
Hence, he decide to pump in $1m of Term coverage on top of his another $1m whole life policy. His annual premium amount to $10,000 per year cover $2m coverage.
By paying the premium, he get to enjoy the coverage as it will step in to meet its obligations should anything untoward happen to him. Most importantly, he know that all the family's financial needs are well taken care of.
Of course, everyone have his/her own budget.. Get yourself cover step by step.. if you care for your family...
October 17, 2009
What excuse do you have?
Many of the times, i meet clients with different age band to discuss about how to use life insurance for your financial protection, savings and investment. Many of them will have the same excuses..
1) I already have a lot.
Think about it!!
How much coverage is enough?
Have You set aside cash savings equivalent to 6 months of your income for rainy days!!
You need to ensure that there is enough money to cover the family future expenses (including living expenses, child's education expenses) in case the sole breadwinner is not around anymore!!
2) Another exceses.. This happens for all age group..
I have no money..
Age 25
I am young and just starting my carrer. We dont make much money yet.
Age 35
Our Mortgage and family bills take all of our paychecks. We cant afford to save anything.
Age 45
We cant save now, the kids are in colleage.
Age 55
It is not easy to start at our age.
Age 65
We should have started long ago.
But it's too late now.
All this never come to a conclusion... But have you ever think...
what if the clock inside you stop clicking one day?
Are you responsibilty to your loved ones?
1) I already have a lot.
Think about it!!
How much coverage is enough?
Have You set aside cash savings equivalent to 6 months of your income for rainy days!!
You need to ensure that there is enough money to cover the family future expenses (including living expenses, child's education expenses) in case the sole breadwinner is not around anymore!!
2) Another exceses.. This happens for all age group..
I have no money..
Age 25
I am young and just starting my carrer. We dont make much money yet.
Age 35
Our Mortgage and family bills take all of our paychecks. We cant afford to save anything.
Age 45
We cant save now, the kids are in colleage.
Age 55
It is not easy to start at our age.
Age 65
We should have started long ago.
But it's too late now.
All this never come to a conclusion... But have you ever think...
what if the clock inside you stop clicking one day?
Are you responsibilty to your loved ones?
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