You should really read this if you are still not insured (means you still haven’t owned any life insurance). There are probably many reasons why as a working adult, generating income every month but still fears to pay insurance premium. Let me help you to make the excuses:
My income is not stable.
I have to pay car installment and house mortgage. Too much commitment lar..
There is no money left every month. I]ve got no saving at all.
$150/month premium? I can’t afford that
I still have a few thousand credit card debt
I am single; I don’t see any necessity to get insured
Aiyahhh, just enjoy first. Don’t worry, be happy!
My family can take care of me.
Insurance company always find loophole not to pay claims
My insurance agent ran away with my money last time
I will lose money if I never make a claim
Despite all these reasons not to buy a life insurance plan, I was shocked by a prospect decision a few days ago. I don’t even know her name before she approach me for advice. She works in a restaurant that I frequently bring clients to dine and discuss about personal finance matter. So she knows what I am dealing with. One day she just asked me to meet her when I am free because she needs some advice on insurance. I allocated the time and met her in a sunny afternoon. After going through all the insurance concept and benefit explanation, I asked her how much her budget for insurance premium is. She answered, “RM150 per month”. Surprisingly the case is closed on the same day, at the first time we talked about insurance! But what really shocked me is when she disclosed her income.
As I said before, a person should allocate about 10% of her income for wealth protection planning. In her case, to be able to afford RM150/month, she probably earns RM1500/month. In fact, her monthly income is only RM850/month! After knowing the facts, I told her she is over insured. I had to salute her for the answer —- She said, “I can’t do much if I have additional RM150/month. But the RM150,000 medical limit and thousands ringgit death benefit should be able to ease my mind when I ride to work.”
If you earn more than RM1500/month but still can’t afford to have an insurance plan, you should be ashamed of yourself.
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