Why buy Life Insurance, Prospect Distantly Avoid Plague
Why buy Life Insurance, Prospect Distantly Avoid Plague at all cost. Regrettably, the Malaysian life insurance penetration is merely 56% of the total population in 2016. It implied that the balance 44% of the citizen is uninsured or not qualified to have life insurance due to inborn defect. Why we have such a pathetic scenario? Is the agent or assured to blame? Briefly, to say, it applies to both in our shore here.
Not only, no insurance also that the sum insured inadequate. The average is about RM100, 000.00 to RM150, 000.00, can it feed your beloved one or dependent for 5 or 10 years if one day you forget to return home. Moreover, an amount varied between the urban or rural living plus also the working spouse or children. Nevertheless, the meagre sum insured is hardly enough to last for a year living in the city with 2 or 3 kids in toll for a single parent.
Why Buy Life Insurance.
Is it the responses of the parent to take care of the children welfare when one demise? Very often, cool-blooded landlord eradicated single parent out from their rental home. Subsequently, like adding fuel to fire, the bank publicly auctions off the house for 6 months default in repayment without any insurance to cover the loan tenure.
The innocent child is also the victim when one parent remarried. Stepparent often abused the defenceless kid. Recently, a newspaper reported rape, physically tortured with multiple cut and bruise and old wound over the emaciated body. The police rescued a retarded boy from the evil mother. The reason given, chained the boy like a dog in a small cage preventing he strolled out. Can you soul be rest in peace if someone does to your child? Unless you are heartless, no human-bear to see the suffering of abusive and inhumane tortured.
In the ever-burgeoning budget of a newly married couple with a kid, car loan, parking petrol and upkeep of the vehicle eat up a chunk of their salary each month. Moreover, there is the student loan, housing repayment, utility bill, an emergency fund like a kid doctor bill and love gift to aged parent. Luckily, a break even or a blessing to have a tiny disposal income left for saving. With a tight budget, any extra is beyond their mean and classified as a “luxurious” item like buying life insurance.
Needless to say, it is advisable for such a young family to have affordable term life insurance that cost merely a daily high tea at a local café. What is your opinion you prefer pricey life insurance compared with a bedridden spouse or kid at home to maintain? Death is an instant relief, but the loved have undergone lifelong grief. So why be an irresponsible parent that might curse subsequently by those still alive struggling to meet day end need?
I lead a healthy lifestyle.
Nowadays, insurance agent always complaint is difficult to close a sale with the young and active people. The yuppie leads a healthy lifestyle to visit gym 5 days a week after work. Likewise, for the diet too, eats moderately due to health and utmost important tight budget. How far is that truth? We puzzle? Eat junk food like instantly noodle with enhanced favour, fry egg and soft drink instead of mineral water or fruit juice? Surprisingly, the diabetics and hypertension suffer gradually knocking at their door. Closely examined, the Malaysian demographic depicted young suffer from 30+, which was unknown in the last century. Honestly speaking, how many Malaysians have their yearly toughly medical checkup? Toast off to you, if you have a clean report, otherwise, you are an insurable or substandard risk with premium loading.
Cover for Money Printing Machine
Unpredictable human being, in order to understand insurance, might take ages. Insured their movable assets like automobile, exclusive motorcycle, extensive renovation home, camera and household contents even pet for fury animal including the kernel, but no insurance for themselves that. Rampantly road accidents and armed robbery pray hard nothing would befall on them. Moreover, no one can predict when you are imminently sick or bedridden or walk on the clutches. Yet, there is no insurance to cover for the machine that prints money for you, that is your body. Gradually, overuse due to wear and tear a machinery breakdown, likewise, it is the same for your body. Consequently, a fatality occurs or lying motionlessly on the hospital bed.
Why buy Life Insurance, Prospect Distantly Avoid Plague
Crowded coffee kiosk, two middle-aged customers sat in between a young man, an insurance agent.
“I lament you not buy any insurance as my neighbour’s son hospitalization for a week in a private hospital, the insurer denied his claim”
“Why” another probed further.
“I do not know the reason for the rejection, initially the agent helped to claim, eventually the agent also unreachable “
“Yes, truly say, the agent and the insurer are the legal lesson conmen, promise you the sky, finally you get a barren hope.”
“Sorry, young man, I need to consult my spouse before making the decision from buying your investment linked proposal” Another elderly prospect consoled the dynamic agent.
“Yes, it is alright to reconsider about it, please don’t hesitate to call me for any doubt clarifications” the agent replies politely.
Thus one rejected claim would eventually rumour spreading fast like wildfire.
The truth reveals
Occasionally, the half-baked agent would request the assured to sign on the dotted line without filling the medical history. In order to get prompt approval, agent ticked all NO in the column even though assured mentioned has hypertension and on long-term medication. Whose fault? It is the Assured himself as he does not know anything when he blindly signed the dotted line on the proposal form. The former kleptocrat prime minister Najib Razak is a shining example.
Assured’s moral hazard
I did help to claim a case rejected by the insurer. Finally, to my dismay, I obtained a hospital report that assured did a kidney stone removal in a government hospital. When asked by the agent any operation done in the past. He negatively answered NO. Consequently, the insurer denied its liability for his claim on kidney dialysis.
Another case on hypertension question, nevertheless, assured answered negatively despite the fact of having daily oral medication. Eventually, the claim often denied by the insurer when claim stroke or kidney failure on the later stage.
Utmost good faith
Utmost good faith is one of 4 principles governed by the rule of the insurance law. Legal binding between the assured and insurer when entered into an insurance contract, the assured disclose all the relevant material fact to the prudent underwriter in determining to reject or accept the offer. Whether the assured know or unaware of the health condition, disclose to the insurer. So, sincere advice bares all the fact to the insurer to avoid the future burning issue on claim matter.
Generally, couldn’t care less is the altitude of most of the y generation. Chase after latest trendy iPhone gadget every six months. Moreover, priority on holiday, pay later for the credit card payment. Buy Life insurance? Why need it, I have no dependent is an impulsive reply? Single with no string attached, without any family commitment, no parent, no sibling, living on own world, why care! Having said that, what about your final funeral expense, consequently let the government take care of burial, or leave the corpse to decay on the road or hospital? Perhaps, perform a unique Tibetan “sky burial” let the eagle devour on your corpse.
Notwithstanding, if you have a grey hair retired government servant parent, isn’t a double pain for them. Losing one child, and the final expenses, ritual prayer and burial ground to pay for? Unfortunately, you confirmed total permanent disability, aren’t a pain in the neck hiring a nurse or long-term nursing for you. Conversely, put you in the nursing home, who pay for maintained expenses?
No money is a just a lame excuse to put off for the newbie’s advisor. Regardless single or a young married couple is a norm form of getting rid of intermediary. Or postponed, the chance is they procrastinate for a few more years. Luckily, the body has no red alerts for silence sickness. Meet a car accident, then you want to cover your car for a comprehensive term, do you think insurance company run on charity and accept your offer. Blatantly, you turn down. But the truth is, the majority of the insured have this kind weird idea. I have stumbled across few incidents like this before during my 25 years in the insurance industry. Does insurer run on charity?
Time waits for no man
Gradually, we aged with the erosion of time, coupling with consumption of highly toxin junk food daily intakes. No wonder primary school going kid had undergone kidney dialysis at the public hospital. A normal phenomenon is our today society with a stressful lifestyle chasing after material gains. The insurance premium gradually rises accordingly to you age. Not only the higher premium pay but also lower the sum insured if we compared a lad aged 20 and another 30 years old adult. As we age, we are prone to illness due to the sluggish immune system. Even applies to term insurance for a 10 years gap band.
In brief, please buy insurance when you are in your youthful vigorous year to save cheaper premium with higher sum insured.
Jargon wording with length sentence
How many lawyers and insurance can consult and understand and interpreting sentence by sentence in the insurance policy? Nobody trained in all fields; therefore no one is an all-rounder in this world. Diligently consultant your agent or even bring the policy to the insurer for a full explanation. Closely examined the following point, you would face difficulty in handle a claim in the near future.
In this column all the sickness or any circumstances relevant contradicted to the policy, the insurer would deny its liability. For instances, commit suicide within certain years or claim on pre-existing illness know to the insured. Please highlight to the assured when delivery the policy for acknowledgement of the receiving the policy. Do not conceal the fact, it is better to avoid short-term pain rather finger pointed how irresponsibility of the consultant.
The policy enforced with the date clearly printed out and the expired date of the policy. Commencing date is utmost important in the case of medical or 36 critical dreaded disease claims. Never overlook it. Frequently, assured would hospitalize for an illness, and bravely ignorance the waiting period. Subsequently, no entertainment of the claim, the assured would spread the rumour that insurer selling a scam policy, even though the default lies with assured. Sabotage the agent, branded you feckless advisor, and tarnished your name.
In this schedule, your name and identity card number should spell accordingly to your national identity card. Correct the error immediately should you spot a mistake. Thereby, the insurer has leeway to deny your future claim. Do not give the underwriter a chance for your consumer rightfulness claim.
Highlight the type of coverage, whole life, endowment, term or investment link or purely medical card policy. Total permanent disability, 36 critical illness, waiver of premium due to dreaded disease or the payor. Any hospitalization benefit per day, woman disease and pregnancy admission specified according to your signed proposal form. Scan any deviation, informed the agent in a written form and ensure the insurer to pass endorsement accordingly. Finally, made a note of the sum insured in the schedule.
Stated the policy number in the policy for convenient correspondence with the insurer claim, when ledge a claim in the future or an endorsement. How much premium you have to pay? Assured need to warn adjusted premium during duration the whole validity of the cover, not to forget if the medical card guarantee renewal clearly stated.
Buy a peace of mind coverage
Splurge an exotic meal under the candlelight dinner or exorbitant family oversea excursion or perhaps the endless chasing the ever change the latest gadget every six months. Why not paused and think for your loved one when one day you lose your way home, getting a policy coverage that ensures all the financial constraint would not befall the ongoing family.
As usual, I would love to hear any thoughts or questions that you have in the comments section below.
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