Quote:
Originally Posted by Unregistered
Would like to ask people here regarding health insurance. I earn 5k a month, take home around 4k. I spend around 900 dollars on all my health insurance (including hospitalization, term and whole life plans). I have a whole life policy, the Aviva mindef term plan, a hospitalization plan (covers up to private hospital), as well as 2 different critical illness coverage plans.
I would like to ask if that is about right, or am I spending too much? (As at the end of the day, other than my whole life plan, there is no cash value to all my other policies..) |
A wise man once told me insurance is a man made concept that defies the law of nature. If God mandates its your time to go, its time.
But really insurance is just a transfer of risk. You pay money to transfer the risk of getting accident to an insurance company, so in the 3nd of an accident you're covered.
In another word, insurance is not an investment. You're not supposed to make back what you put in.
Life insurance you only buy during 2 major events in your life. You have people depending on you. So it's when you're married and when you have kids. You don't need to buy life insurance for your children. Just as you would not buy insurance for your cousins or nieces. Nobody life is dependent on them.
Tdlr. Buy just enough insurance to cover accident. Spend the rest in investment.
Why? If you're a billionaires, do you need to be insured? No.
Why? Cause you have the money to cover.
Same logic. Buy insurance to cover hospitalisation etc bills. The rest from passive investment can cover things like income if can't work etc.