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Who needs Life insurance?
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If someone will suffer financially when you die, chances are you need life insurance. Life insurance provides cash to your family after your death. This cash (known as the death benefit) replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding. What's more, there is no federal income tax on life insurance benefits
Most of us need life insurance. To figure out if you need life insurance, you need to think through the worst-case scenario. If you died tomorrow, how would your loved ones fare financially?
Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyers' fees, etc.)? Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc? What about long-range financial goals? Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably?
The truth is, it's always a struggle when you lose someone you love. But your emotional struggles don't need to be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you're not there to care for them yourself.
To help you understand how life insurance might apply to your particular situation, i have outlined a number of different scenarios which will be posted the next time round. So whether you're young or old, married or single, have children or don't, take a moment to consider how life insurance might fit into your financial plans.
<!-- / message -->Edited by FireIce 25 Jul `08, 4:32PM
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Originally posted by Ah^-^Boi:Who needs Life insurance?
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If someone will suffer financially when you die, chances are you need life insurance. Life insurance provides cash to your family after your death. This cash (known as the death benefit) replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding. What's more, there is no federal income tax on life insurance benefits
Most of us need life insurance. To figure out if you need life insurance, you need to think through the worst-case scenario. If you died tomorrow, how would your loved ones fare financially?
Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyers' fees, etc.)? Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc? What about long-range financial goals? Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably?
The truth is, it's always a struggle when you lose someone you love. But your emotional struggles don't need to be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you're not there to care for them yourself.
To help you understand how life insurance might apply to your particular situation, i have outlined a number of different scenarios which will be posted the next time round. So whether you're young or old, married or single, have children or don't, take a moment to consider how life insurance might fit into your financial plans.
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So if I saved more than what those insurance companies might be paying when I die, then I no need to have life insurance right?I thought so, life insurance are meant for POOR people only.
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Originally posted by youyayu:
cool. parn.. if u are richer.. means u pay more means benefit will be more too
Why would I need more money when I already had enough?
Anyway, no amount of money would ever be enough to replace me when I'm gone.
I don't need money when I'm dead, and neither does my family.
So, there's no reason for me to get insurance, it's only death and everyone dies.
However, there is a high risks for insurance companies to collapse before I'm dead.
Remember....insurance does not covers terrorism even you pay them the premiums every month, so why are we feeding them when you have to obey their company policies even when you're dead.
My own money covers everything, including terrorism, moon crashed onto earth, end of the world...etc.
I hope insurance business will be so popular that they are able to rival the bubble tea craze in Singapore. Maybe then Singaporeans will see how silly it is to buy insurance and how super lucrative it is to own an insurance business.
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My dear friend. Insurance is a product after all. It is all depends on how you utlizise it for different purposes. It is not for the poor only. Many rich people buy insurance for their business, estate, taxes and asset allocation planning. For example: U can choose to give the insurance proceeds from your death to your children instead of using your own asset money. Think about it... r u sure ur family and children don't need money if you r gone now?
Dear Parn Sir, i understand that you mention death happens to everyone. I totally agree with you. But tink about it, how many of us has actually planned death already since it is part and parcel of life? Most of us has taken death for granted and thinking that it is not going to happen to me anytime now. Tinking that i can still live out the rest of my life few years down the road and more. But the truth is, do you noe when death is coming? By the time u realise it, it's too late.
True.. your own money covers everything. But having an insurance policy to cover is certainly a better alternative for you as you need not use so much of your own money to cover everything. Use insurance as a product to meet your needs. It's a product. The differences lies with how r u going to utilize it.
Lastly, it does not covers terrorism but it did covers death and total permanent disability that occurs from the attacks of the terrorists. Hw r you going to explain that?
i am just highlighting the importance and many uses of life insurance to people. Wanting them to know that this product can have many uses. Thanxs Parn for ur feedback
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In s'pore, its cheap to die but expensive to get sick especially if u kena chronic illness....all ur savings gone.....everytime need to go check up here and there.....
but then again, depends on how u look at life insurance.....
some need it some don't....
part of what PArn say its true and i dont deny some true facts about what Ah boi said also....
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Thank you guys for the feedback.... I will do my best to highlight the importance the importance of insurance and share my insights of insurance.
Alot of people have shunned away from insurance, because of some of the unethical things insurance agents do and has created a very bad impression of it. I do hope more people will understand the importance of it and spend a second thought on it and won't miss out this good product.
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Originally posted by Ah^-^Boi:
Alot of people have shunned away from insurance, because of some of the unethical things insurance agents do and has created a very bad impression of it. I do hope more people will understand the importance of it and spend a second thought on it and won't miss out this good product.
I couldn't agree more. Unfortunately, first impressions last.
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Dear Fireice, please be informed that i am not trying to pretend a good guy. It's true i did leave down my email. But that is, if the person is willing to contact me and want to know more.
it's true that nobody would do anything for free in this world but my passion for this job is great and I would love to share my views and opinions on it and it is really a pity that i seen many people shunned away not because of the product but rather the insurance agents who are unprofessional.
From today onwards, i will not leave my contact nor anything anymore. I will continue posting my insights and thoughts to share with the people around. I hereby just wish that the people who has visited my topic will just read through it and understand more. Tat's all. Simple and sweet
Maybe one day, you may what i had shared is useful, and you may thank me in the forum.. Thanxs
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Originally posted by annoy-you-must:
Then it's funny...I'm currently serving NS now, so obviously, my family members are not dependent upon me for money. In fact, if I die, they can save a lot of money since they don't have to feed me anymore...so why do I still need to buy Life Insurance?
when u complete NS, you will be working, and your parents retired. unless you dare say your parents have saved enough retirement fund and will not need a cent from you after you go to work, then Yes you dont need any insurance. but if your parents are depending on you for money when they retire, then you will need insurance. which is normally the case for sgreans since we have the culture of feeding our parents.
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ok come on. i mean this finance industry in singapore is still young, not because of the time it has been introduced, but rather the mindset of the locals. personally, i have a little knowledge on this topic, so if you guys have any doubts, i can try to clarify to my best extent. post the questions here. give me some food for thought, cause i intend to be a financial adivsor/planner in the future. thanks
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let me advise you guys what type of polices you will need.
1) Life insurance if someone is depending on you for food. note there are 2 types, 1 is the endowment type which you get money back after you have paid for a long time. the other is really just paying for the coverage.
for the endowment type, it is recommended if you have spare cash to invest and are not interested in investing them yourself in the stock, bond, or FD, basically, you just want to leave your money somewhere for someone to do it for you.
the 2nd type which is just for the coverage, meaning no money will be returned to you after the policy ends. suggested for people who are active investors, and are capable of getting returns better than the rate provided by the endowment plans.
2) Accident in case you get knocked by a vehicle or slip off a 10 floor building.
3) Hospitalization and Chronic illness, well someone said it is cheaper to die but expensive to fall sick in singapore. which is very true given high medical cost.
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4) Inability to work, like IF you lost both hands due to accident and cant find work anymore, there is a type of insurance to cover your daily expenses, and this term is normally included in 2) or 3) or you might just want to get it separately.
on a separate note, insurance do not pay out to mass casaulty incidents, like war, or SARS if i am not wrong. but you can read the terms and clauses before signing. for my own , i signed SAF insurance, the max they can give for the longest period of time. cause my includes coverage in war, overseas and during training.
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