Insurance

I had always wanted to write something about this topic but my recent schedule has not been cooperative.

And it should be worse now that I just failed my IPPT. Now I have to go for Remedial Training twice a week for a full 4 weeks before my next attempt. And I failed by 6 secs for my 2.4km run. :(

Anyway the topic is insurance, not my fitness level.

Having read Mr Wang's dissection of a typical pitch, it sure makes one think again about forking out money after money is getting higher and higher coverage.

For my current portfolio, I'm already paying about $650 per month of premiums. And somehow it never seemed enough. One of my agent recently reviewd my policy and if I were to have myself "fully covered", I need to spend another $600 per month on new policies.

I was like "Wow". And my intial $650 was only achieved not so long ago. It was only $150 per month previously.

$1200 per month!. That is like someone else's salary. This is financial planning?

Even if I'm earning $10k a month, spending 10% of it on insurance seems ridiculously high. My savings may not even be at 10%, though I must admit that all my policies are ILP, which carries a return and thus a higher premium.

Yes, the probability of you dying may add a heavy boulder over your family's shoulder. But all of us only have finite amount of money. Would you prefer to throw all $$ into insurance and let your family become overnight millionaires, or should you use that money to better the quality of everday life with your family.

Quantity versus quality.

Post Note: Many of us should be familiar with this.