10tips on investment link life insurance

Many of my friends is going to graduate soon and start pursuing their future career, and I am sure you all know the necessity and important of life insurance. While there are many types and range of life insurance available in the market. Here are 10tips I will like to share when anyone is choosing life insurance

1. Pick the right agent or consultant

Your insurance agent or consultant is very important because life insurance is a complicated longterm plan. Therefore, you need to find a person that is trustworthy, honest and offering good service. The meaning of good service is he/she is the kind of person that will offer help when you need him. I've seen many agent that didn't bother about their client at all once their client bought policy from them. You need a person that trustworthy and honest to handle your policy. Therefore, the best way is to find a person you know well. However, insurance is a complicated product and even the most experience agent may can't answer some of your question. This is alright, as long as the agent know where to find the answer.

2. Knowing your priority and needs

You need to know your main goal of buying this policy, is it on saving and investment? or insured? or medical card? or all together. This is because most policy may claim that they have 3in1 or 2in1 package. This may look nice and valuable. But the truth is many people will ended up buying a wrong policy or paying extra charges that they don't need. Financial wise, this will be bad. So understand what you need, and ask your agent to design or recommend a plan that suits you.

3. Start early

Once again, TIME is again the main factor in savings and investment. So do life insurance. Many people only want to buy life insurance once they have problems or realize they need it. But that time is to late as most insurance company will reject you if you starting to have bad health records. Plus, the earlier you start the cheaper your premium will be. And the most important thing is the saving and investment part. In most policy, you will receive a lump sum or return of investment from life insurance once reach the maturity period of 20years. Lets say, you're 23 now. Which mean you will get the money at 43. Thats is when your children going into college and you need large sum of money. So in conclusion, start saving as early as possible...

4. Life insurance is a blessing, not a burden

Life insurance is mean to help us financially, and prevent the loss from risk. Many people doesn't see the value of life insurance thus claim that insurance is burdening and cheating your money. These will be back to tips 1 & 2. If you pick the right agent and knowing your target. Then it wont be a problem. But if you unable to see the value and important of life insurance, then don't buy it. As it will only burden you.

5. How much is enough?

Once again, life insurance is not mean to burden you. If you buy a policy that exceeds your monthly budget, then it will be a disaster. The recommended premium should be 10% of your monthly salary. For example, if your salary is rm2000/month then you should pay the most is rm200/month for your life insurance. You may increase your premium in the future as On how to distribute your monthly salary, I had explain in another article, kindly click this link 

http://bryan-trinity.blogspot.com/2011/01/financial-planing-basic-formula.html

6. Choose a financially strong company

Choosing the right agent is important, but choosing the right company is also crucial. You will saving your money in this company for as long as 20years. Therefore you need to know how good is the company investment performance so that you can maximize your profit at the end of maturity period

7. Do your homework

Besides just listening to your agent or consultant, you should also do your own research and studies on the company you are going to invest in. Ask friends around for recommendation and advices. But remember, don't just listen to a party. Ask more people, and do the comparison yourself

8. Stay healthy

Having healthy lifestyle and keeping yourself in shape will greatly benefit not only in terms of our well being but even also in the benefit of life insurance. By improving your risk class, you can get more benefit and better offer from your life insurance. So, quit smoking, maintain a healthy weight, blood pressure and also cholesterol level.

9. Insurance is not a tool for investment

Insurance may be an asset, and have a high interest. But always remember do not use insurance as your only vehicle for saving and investment. Always try to diversify your investment portfolio, as there are many vehicles around. For example, mutual fund, uni trust, properties and so on. Using 10% of your salary for your life insurance is enough.

10. Always keep yourself updated

Once you buy a life insurance, always meet your agent/consultant at least twice a year. So that you can keep updated to the company performance and how your insurance going on. Besides that, you also can make adjustment when you needed as we will have different needs in the future.

For more information on advice and policy needs analysis. Kindly contact me as below. Thanks

Life is complicated enough, financial security shouldn't be

BRYAN KHOO

0167688136

bryanksk2003@yahoo.co.uk

WealthMap(M) Sdn. Bhd.

Suite 19-02, 19th Floor,

Wisma Zelan, Jalan Tasik Permaisuri 2,

Bandar Tun Razak, Cheras,

56000 Kuala Lumpur