A Personal Finance Blog for Malaysian: How to purchase life insurance rationally?

Wednesday, January 12, 2011

How to purchase life insurance rationally?

Compare life insurance to car insurance, for example. If you wreck your car the insurance policy pays you a check, so you get a direct benefit from the policy. The chances of you being in a wreck are pretty good - you see wrecks every day. Finally, if you wreck your car it is not the end of the world. You will simply go buy another one. Car insurance is therefore a commodity item that you purchase without emotion - you have to have it, so you buy it at the cheapest price you can find.

Life insurance - may get emotional because we talk about "death", "dying", "critical illness".... amongst those subjects most people try to avoid like "taboo".

So, how to buy a life insurance "rationally" rather than "emotionally"?

Ask yourself few questions:

  1. Do I need it?
  2. How much do I need it?
  3. How it integrated (work with) other plans in life?
  4. Who to buy from?
Do I have the answer for you? Yes and No.

Yes because I have done lots of study and research on this subject.
No because I don't know YOU yet.

Contact me to help you decide.