Life Insurance Policy Hack – Now I am of the opinion that not everyone is ready to invest. I conclude that one must first be financially fit to invest. This means, before we look for the next market or real estate negotiations, we should get our financial house in order. In general, this includes having:
In this article I will focus on life insurance issues. For what? Imagine that we have built a large investment portfolio for ourselves and we are proud of it. If we encounter an unfortunate event such as being hospitalized for medical treatment, without insurance, who do you think will foot the bill? I think it makes sense to have insurance to keep it, and therefore avoid the need to load our pockets to pay for it.
Life Insurance Policy Hack
Most of us use the idea. But many are still very indifferent as I write today. Perhaps it is due to the general misconception that insurance is expensive and impossible, which arises from the lack of financial education among consumers and from agents who are only interested in selling expensive products for commissions.
Mistakes To Avoid When Buying A Life Insurance Policy
So, here are 5 life insurance hacks you need to know before buying your next policy:
Recently I just met with my insurance agent. From you I learned that 30% of your customers have received either rejection or acceptance status on their proposals to purchase new policies from your insurer. Generally, this is due to the current health status of your customers.
Perhaps you might be thinking, ‘Ian, is it because your friend’s clients are old uncles and aunts?’ The answer is no. Your customers are young where their age is under 40. Here I will share 3 things you can do now that can help increase your chances of getting immediate acceptance for your next policy purchase. Guaranteed at no additional cost:
Now, if you are overweight, don’t worry. I’m not here to judge or ask you to go on a crash diet or exercise regimen. Instead, I think it will help you to have a 1 year plan filled with simple activities that will help you lose weight. This includes nice walks in the park and replacing your diet with a very healthy one (not necessarily full green).
Adjustable Life Insurance: Pros & Cons
If a new customer is found to have hypertension, he will pay at least 20% higher insurance premiums than someone who is not. If you find that your blood pressure reading is almost 140/90, then it is time for you to adjust your lifestyle and diet to lower the reading. You can be saved.
You are too healthy. It saves you money. Your profit will be cheaper by 10% – 15%. I will not elaborate further, as this is a widely known fact.
Your insurance premium will be calculated based on your ‘Next Date of Birth’. So, as I write today, which is February 10, 2018, when you were born:
Generally, your premiums will be lower if you purchase your policies at a younger age on your next birthday. Normally, I will review my insurance needs at least three months before my birthday. This allows me the perfect time to get a new policy before my birthday arrives.
How Can Guaranteed Acceptance Life Insurance Help You?
If you are a fresh graduate where your salary is below RM 3, 500 per month and decide to get your first insurance policy, I would suggest you to get the right medical coverage as your top priority. You can get different types of life insurance products as your income increases over time.
This is very affordable. Most college students can afford to get one of these cards as the cost is around RM 50 – 80 per month for basic medical coverage. It’s handy if you’re on a tight budget.
Nowadays, the “best” medical cards are sold in a bundle with an investment-linked policy, where you bundle term insurance, medical cards and a unit trust investment into one policy.
Here’s what I did to get the highest medical insurance from an investment-linked policy. I asked for a low term insurance and trust investment amount for my policy. Your taxes will be much lower because you will not pay term insurance and invest in their mutual funds. Today, I think you can get such a policy for RM200 a month, where the health insurance is almost RM1,000,000 a year, without insurance coverage and life limit. So, if your current medical cover is under RM 1, 000, 000, I think you can shop around and consider an upgrade if the deal is good.
The 5 Types Of No Exam Life Insurance Policies [and Prices]
Last Tuesday I attended the 1-hour live webcast hosted by Peter Lim. I learned a lesson from you and I think it’s worth sharing it with everyone. It is known as Area-to-Premium (CTP) ratio, which measures the amount of your area per RM 1 in premium.
The rule of thumb is to get the highest possible CTP ratio for our insurance products. The optimal CTP ratio varies according to age, gender and health conditions. For example, if you are under 35 years old, you can count on a CTP ratio of 150 and above. Here is the formula:
That means, if you can afford a monthly insurance sum of RM 150, you can aim to buy a life insurance that at least RM 270,000 in case of death, total disability and serious illnesses 36. Of course, that is. if you are under 35 years of age.
Of course it will be small. I don’t expect to pay a lot of money after 20 or 30 years for my insurance policy. For what? Shouldn’t I expect to get a “return on investment”? Never. This is because insurance policies are only protection, not investment. Let me give you a simple analogy:
Insurance Hacks 101
Personally, I prefer an investment linked policy over a whole life policy. This is because I save RM 3,200 a year in insurance premiums, which can be invested for higher returns than a whole life policy. In fact, you can even build an investment portfolio that funds this policy itself.
For example, I make about 6.5% a year in dividends from my stock. Therefore, I need to increase my stock investment by RM27,692 to “self-fund” this policy as often as it costs RM1,800 per year in dividends. That way I could upgrade my insurances without being too burdened by new contracts.
Of course, this method only works if you’re investing for cash flow, not for capital gains. As Robert Kiyosaki advocated, it is better to invest to earn money to pay your expenses.
There you go, 5 insurance hacks that will allow you to reduce your profit, increase your margins and quickly raise capital for investments that put money in your pocket.
Financial Literacy Lesson 14 — What’s Included With A Permanent Life Insurance Policy?
If you have any comments or questions about insurance matters, feel free to leave them in the comment box below:
Ian Tai Financial Content Machine. Dividend expense report to investor. Produced 500+ business articles in Malaysia and The Fifth Person, Asian Investment, and Small Cap Asia in Singapore. Regular host and presenter of a Weekly Money Webinar with. Co-Founded DividendVault.com, a group website that enables retail investors to build a stock portfolio that pays increasing dividends year after year in Malaysia and Singapore.
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Tips To Reduce Car Insurance Premium
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Whether it’s for an emergency, some much-needed repairs, or an investment opportunity that can’t be missed, just about everyone needs a quick infusion of cash now and then. But if you don’t have cash available, it might be time to consider a loan. With all the financial instruments that seem to be floating around today, you may tend to overlook the one that is probably sitting in your desk drawer or safe deposit box – your whole life insurance policy.
This article was co-authored by Michael R. Lewis. Michael R. Lewis is a retired corporate executive, entrepreneur and investment advisor in Texas. He has more than 40 years of experience in business and finance, including as vice president for Blue Cross Blue Shield of Texas. He holds a BBA in Business Administration from the University of Texas at Austin. This article has been viewed 189 times.
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