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Whole Life Insurance

Your Comments – My Replies #3

I would like to thank Marc for visiting my blog and posting his comment after his read on my posts on the importance of having Mortgage Insurance to protect a Mortgage Bank Loan. If you are interested in reading what I have written on this particular topic, these are the links:

– Mortgage Insurance For Your Mortgage Loan – Part 1 of 3

– Mortgage Insurance For Your Mortgage Loan – Part 2 of 3

– Mortgage Insurance For Your Mortgage Loan – Part 3 of 3

And this is the comment by Marc:

“Hi, it seems from your article that one can purchase a mortgage insurance with a sum assured higher than the loan amount; coverage longer than the loan tenure.

Please elaborate how this insurance can help one in time of need after the loan has been paid up completely.  Doesn’t the insurance lapsed automatically once the loan had been paid up?”

This Is My Reply:

– With Regards To Higher Sum Assured and Longer Coverage Period

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The Importance Of Having A Personal Accident Plan In Your Insurance Portfolio

Do you have a Personal Accident Plan included in your insurance portfolio? If not, do you know that you may not be adequately covered in certain aspects of your Financial Planning?

Recently I had two prospects coming to me, asking me if I could help them with their recent medical bills resulting from an accident. After looking through their portfolios, one of them have a simple Term Insurance that cover against Death, Total & Permanent Disability and the 30 Critical Illnesses. The other party has a lot of those fixed deposit plans with the banks and certain insurance companies, insurance coverage wise is just on death and total & permanent disability.

The only advice is that I can give is that they will not be able to claim from any of their current insurance plans, neither could they claim from their medishields because they were not warded and most of their treatments came from the clinical sides.

They were disappointed but they were not angry because they told me that they have never thought that they will meet with an accident and have always ditched the idea of getting a Personal Accident Plan because they feel that it’s a waste of money (no benefits until there’s a claim else money spent is down the drain)! They can only live with bearing the full medical costs on their own now!

The Importance Of Having A Personal Accident Plan

So what are the main benefits of getting a Personal Accident Plan? Let’s look at a few:

1. You Can Claim Reimbursements For Your Medical Bills For Conditions Resulted From Accidents

As long as you have suffered some form of injury because of an accident (there’s a proper definition to this so please do check against your product summary) and you have incurred a bill either from a hospital or from a clinic (yes, this is covered and it also include those TCM). You can actually claim from your Personal Accident Plan up to a certain limit depending on your plan type.

If the limits are high enough, you may be entitled to claim for future medical bills (especially follow-ups) for the current injury.

2. You Can Claim Compensation For Some Permanent Injury Suffered Due To Accidents

If, you do suffer from a permanent injury, e.g loss of an arm or an eye, you can also claim some form of compensations from your Personal Accident Plan.

3. You Can Get Some Cash Benefits Because Of Your Temporary Disablement

You may suffer from a broken arm that will result in you having to have a long medical leave and thus you are unable to go back to work. Your income may suffer as a result. Having a Personal Accident Plan may help to lessen the financial impact because most plans out there offer Cash Benefits (will never be high enough to cover your full month’s pay) to help you tide over the situations.

Why A Personal Accident Plan Is A Must-Have In Your Insurance Portfolio

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Why Some People And Their Family Just Hate Insurance

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.

Reason #1: I Can’t Claim Anything From The Insurance Plans That I Have Bought

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.

Reason #2: I Lost Money Because Of My Insurance Plans

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).

Reason #3: I Buy So Much Insurance Plans Yet Nobody Is There To Take Care Of Them

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.

Personal Opinion To Reason #1


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Questions To Discuss For Your Survivor’s Needs Planning

Nobody likes to talk about Death or the idea of being Permanent Disabled. But Death will eventually come knocking on your door when you are the least prepared. So are the chances of being Disabled.

You can be single at this moment of reading this post but you may have your dependents like your Parents.

Or you can be just starting your family or you can be already having your two little “monsters” (children) tearing you upside down but nonetheless, seeing them growing up is always a joyous moment.

While so… how prepared are you in terms of your Survivor’s Needs Planning? And what we mean by Survivor’s Needs Planning are as such, when you suddenly forgot to breathe tomorrow but still being able to:

  • (if you are single) Take care of your Parents financially for the rest of their lives
  • (if you just start a family) Take care of your Spouse or the mortgage loans for your new house
  • (if you have children) Take care of your Spouse, your children till they are independent and their university education

all this and even more without affecting their current lifestyle with you still around!

Therefore you need to ask yourself the following questions and see how prepared you are in terms of your Survivor’s Needs Planning.

Read More »Questions To Discuss For Your Survivor’s Needs Planning