An expert’s advice: He is a coach and consultant, Steve Tan has been coaching insurance planning and agency management for over 3 decades. We are blessed to have him on a special interview series to share on proper insurance planning.

He’ll cover these questions in Part 2 of this series

  • Who should buy insurance first? Child or Parents?
  • Savings plan and education fee.
  • Save, invest and buy insurance. Which should I do first?
  • Pure Insurance or Insurance with savings.
  • Medical Insurance’s importance.

For those who love reading, here’s subtitles for you to read through if you don’t want to go through the whole video.

Who should buy insurance first? Child or Parents?

Q: Welcome back to Moving onto another topic, most people face this one same problem. When there’s children involved. Should we insure our children first or insure ourselves first?

A: Children cannot earn money and that’s a fact. In my opinion, parents should have sufficient coverage first. Insuring the child is as important but parents must be prioritized first. From my point of view, parents must be sufficiently insured first. then only move on to your child’s insurance. Parents will always want to give the best for their children, and the most expensive but it’s a misconception

Savings plan and education fee.

A: So what’s the best for your child? It’s the education fees. Education always comes first. In fact, some insurance policies provide both protection and savings. Parents should have sufficient insurance to cover their lives first. As for savings, it will continue to accrue until a claim is made. At about 20 years later, when it’s time for University. The savings in the policy can then be used for the child’s education. When the parents have extra budget, they should get medical insurance for the child. Medical bills are really costly.

Save, invest and buy insurance. Which should I do first?

Q: Generally, youngsters and investment companies believe that it is better to invest first or save first. Actually, based on proper financial planning, should we save first, invest first or buy insurance first?

A: Let’s put it this way. Mostly, when people are asked what professional career are you in? Most of the insurance agents will answer “I am a Financial Planner”. One cannot simply claim the title “Financial Planner”. He or she must have that qualification. Well, in my opinion, I don’t think they deserve the title Financial Planner.

When they only focus on insurance. They should call themselves Insurance Planner. Then its right. After all, insurance is insurance.

Pure Insurance or Insurance with savings.

Talking about insurance first, there’s pure insurance only and with savings type. Term and mortgage reducing term assurance are pure insurance. If there’s no claim, all premiums paid becomes expenses. If it is a savings type, because you give a little extra on premiums, the insurance company will invest the extra. With that extra, you’ll get back the all premiums paid upon maturity or all premiums paid plus a little interest upon maturity.

Medical Insurance’s importance.

Q: Recently, the awareness of medical insurance is steadily increasing. Do you have any suggestions or tips? to share with the public on medical insurance.

A: Medical fees are increasing year by year, and we all know that. Getting more and more expensive. Some will say, there’s always government hospitals. They are right, however. If one of your loved ones, must undergo a major surgery today and chance of survival is 50-50.

Will you choose government hospital or hire the best surgeon?
Definitely hire the best surgeon.

Because we won’t care about money as there’s no 2nd chance. Well, the best surgeons will be costly. Even if you can afford, you’ll be paying a ringgit to a ringgit. A successful surgery at the cost of all your money. Then how about living expenses?  So this is very important.


In conclusion:

Insurance always come first, secure all risk before moving onto investment. Moreover you can save while securing your risk.


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