When is the last time you did a review for your insurance policies?
If you have been trying to avoid such reviews for your insurance policies, there are actually some benefits (I have 5) you can gain from it.
We are currently living in a time era where policies can be confirmed and bought over the phone and even through leaflets. Plans like Personal Accident Plans are of such.
This is true! There are people who simply just hate insurance (except for car insurance because this is made compulsory). And for these people, no matter how much you persuade, how many articles, how many real life incidents you can share to showcase the importance of getting insurance… they are just not interested!
I have personally came across some of them and through a few series of conversations, I have managed to compile a few suggestions on why they hate insurance… I will also be giving some of my opinions on how to resolve this hatred.
This is one top reason why people just hate insurance, they pay and pay for so many years of premium, and till one fine day that they can make a claim, it’s either that their claim is invalid or being rejected.
This is very typical especially for Investment-Linked Plans and Term Insurance. This is also typical for any early withdrawal/surrender of insurance plans (e.g. whole life insurance, endowment plans).
Because of the high turnover rate in the insurance industry, the chances of people having their insurance plans become “orphaned” literally became higher as well.
That’s why when there’s some form of urgency, they can only depend on themselves and do not know what they can do next. And the two reasons above will apply as well.
*If you have other personal reasons for you to hate insurance, I hope you will share it with me with your comments below.
Read More »Why Some People And Their Family Just Hate Insurance
Most people will say no, that’s no surprise, because to these people, Retirement Planning starts only at the last 5-10 years of their working life. Whatever they have by then will determine the kind of lifestyle they will live during their Retirement. And also a risk factor to consider is that a sudden high expenditure during Retirement will deplete this amount drastically, leaving the future really uncertain…
So should you be noticing this kind of situation, and you do not wish to be in it, then it’s time to take into considerations to a comfortable retirement.
1. Time
2. The Interest Rate
3. The Lump Sum Amount
4. Budgeting
When it comes to Financial Planning, have you asked yourself what is more important – Your Needs or Your Wants?
Not too sure what is the difference between the two?
In a general sense, your Needs can be anything from Goods to Services that are necessary for living, e.g. Food, Clothing and Shelter
In a Financial Planning sense, your Needs can be setting up an Emergency Fund to providing an Income Replacement in the event of Death, Permanent Disability, Critical Illnesses and even have enough coverage for Hospital & Outpatient Expenses.
In a general sense, your Wants can be anything from Goods to Services that may not be necessary for living, e.g. Toys, Cars, Games and Entertainment.
This can be saving enough for a Expensive Car, for a Private Property when you already have a Shelter, and even for a Luxurious Retirement.
Even though the meaning behind a Need and a Want can be quite straightforward like what’s mentioned above, but do you know that when it comes to differentiating and prioritizing one’s needs and wants, many people are still having difficulties?
Read More »Financial Planning Tip #7: Know Your Needs Versus Wants
Do you know the importance of going through a Financial Planning Process with your Financial Planner?
And this process is not just plainly buying insurance plans through your Financial Planner but rather more of understanding of your personal and financial situations, current/future needs and objectives.
If you have not really done so or do not know what is this all about, I will be sharing what are the benefits that you can actually get out from going through one.
To Financial Planners, this is the process known as “Knowing Our Clients” and every insurance companies do have their own means in the form of either a software or booklet, ranging from between 10 to even 20 pages and in which a lot of your personal information and particulars will be recorded.
Certain Important Particulars Like:
1. Occupation (to assess the risks) and Family Dependents
2. Total Savings, Investments and Loans/Debts
3. Current Total Income and Expenditure
4. Your Available Budget
And to your benefits of this, there will also be calculations done and these numbers will be of great importance to you! These numbers, if properly calculated based on your full and truthful declaration, will let you know whether you are:
– Protected Against Any Financial Risks Or Long Term Care
There’s enough means for you carry on your lifestyle in situations like a sudden short-term illness/injury or for your family to continue living in any case of premature death.
What about conditions that are long term or permanent? Knowing your numbers will help you to take care of this situation and also lessen any burdens on your family.
– Protected Against Living Too Long
You have enough money to last through your retirement based on the lifestyle that you want. You will also be able to “really” retire by then and not having to continue to work just to keep the income coming in.
– Able To Pay For The Costs Of Raising Your Children And Their Education
Read More »The Financial Planning Process And Its Importance To You
Have you asked yourself this question before – Are people around you living longer or shorter?
If you do not have an answer or do not wish to answer this, my suggestion is that you flip through the Straits Time and just have a glimpse at the Obituary Page. You do not have to understand in details but just have a rough feel at the age of people passing on…
My personal opinion is that the answers to the above are both a yes! And the point that I want to bring across is – Have You Planned for both situations?
