Monday, March 30, 2009

Hmmm...

Hmmm...

I cant load the pictures on my site

I cant see the comments link...

Something I did wrongly???

Nin... @

Sunday, March 29, 2009

A piece of knowledge

While clearing out my ever-growing mountain of rubbish in my room, I saw this old insurance catalog in one of the heaps of letters. I pulled it out and began reading it. Ever since I started to earn my own dollars, I have become even more sensitive to the word 'money' than how I had during studies. I still have lots to learn regarding 'money'. **I love cash!!!**

In the catalog, there is a list of financial tools. Personally, I feel tools are useless unless it is used correctly. My first insurance plan was signed in 2001. Then, I had no idea what my signature on the piece of paper meant. My only concern then was that if I jumped from the helicopter and the repelling ropes didn't do its job, at least I know I am insured. Hahaha...

Below are some extractions from the catalog.

"As a rule of thumb, you need at least 10 times your annual salary as basic life coverage. (Subjected to other considerations)"

At 26 yr old (Getting started)
Term insurance - to provide a cost effective plan that provides higher protection coverage
Endowment plans - to save for short term goals
Investment linked plans - to grow wealth, can consider higher risk for higher returns
Whole life plans and health & medical insurance - to protect family from any financial burden in unforeseen situations

At 38 yr old (Starting a family)
Endowment plans - to save for children's education, etc
Term insurance - to ensure not burdened with house mortgage payments should anything unfortunate happen.
Whole life plans - to ensure the family is well protected, need to review the coverage of the existing policies
Health and medical insurance – to protect from rising medical cost, needs to cover the family and self sufficiently
Investment linked plans - to continue growing wealth, to consider a mix of high, medium and low risk investment linked plans as retirement is still far away

At 46 yr old (Building your nest egg)
Endowment plans - to supplement savings to support his children and parents
Annuities - to ensure a regular income stream after retirement
Health and medical insurance - to protect savings from huge medical expenses
Investment linked plans - to consider low risk investments to protect wealth for retirement

At 60 yr old (Retirement)
Whole life plans - to help build cash values and leave a legacy for loved ones
Health and medical insurance - to protect from huge medical bills
Annuities - to enjoy a regular stream of income in retirement age

Labels: finance