what we seek from insurance is a peace of mind…. but does it really gives it? maybe it does?
The 4 Main Types of insurance
- Term Life
- “Term” states that it is for a period normally 5 – 30 years coverage
- It allows you to choose what is to be protected and hence allowing you to pay a lesser premium (Cover only what is needed to be covered)
- Pure insurance benefit (Very little to no cash benefit )
- Endowment (Part of a Term Life Policy)
- All you need to know it acts something like a Fixed Deposit
- It’s commision rates varies on the type of endowment plan you’ve purchased (look at how much premium is going into fund house and to your agent)
- Whole Life
- “Whole” states that it can cover your entire life (Health and Wealth)
- Due to the double coverage, you pay a higher premium (It can be more than double coverage)
- This means higher commissions are given to the agent that sells you this policy
- Investment Linked Product
- It acts something like the Whole Life Policy but it has greater flexibility (Choosing of mutual funds and allocation of money to either more wealth or health)
- High commissions and annual maintenance fee (Mutual fund) means a high premium.
As insurance has been the “now” taboo subject that is highly avoided, due to the strong perception that our money is what they(agents) are after, there is no doubt that we eventually have to get one (family/yourself). What I would recommend is to get your insurance online.
There will be a 30% rebate of the premium that you will be paying when you purchase from this website 🙂 Which means you’re only paying 70%?!?!?! 🙂
“Knowledge sets everyone free”