Protect your wealth, always

Nearly forgotten about this very important step that everyone must have no matter how successful you are in the corporate world or how rich you are from property investment. Protect your wealth from sudden annihilation. There are many circumstances out of our control, that is for sure. However, if we are responsible, we must and should take steps to protect what we have, whom we love. Even if you are working and your company provides you with medical insurance, it is wise to buy another separate one. No one knows when you may stop working for the company and thus without adequate protection. Recently I went for a ESWL treatment, yes that’s the one you go for kidney stone. Total bill came to RM30,000 for two treatments. Imagine if there are no medical insurance!
You may have a portfolio of 3 properties worth RM1.5 million and you thought you are on top of the world but what if something happens to you? How would your loved ones be able to carry on servicing the mortgage debts? Buying term insurance can help to protect you should something unforeseen happens. Remember, besides their sadness, the thing they need most is to have a place to stay as well as to be able to support themselves when you are no longer able to support them.
There are also those savings cum insurance plan which forces you to save every month. These will only give you very little interest but they offer some protection and in the longer term, you would suddenly find that you have accumulated quite a huge savings from it. Imagine, just RM500 which you do not see every month, turning into RM80,000 after 10 years? RM500 per month may not seem a lot but RM80,000 is definitely a sizeable sum, sufficient for your baby to even study for a UK based 3+0 degree locally.
Remember, no one can foresee what may happen in the future. Perhaps what you do may not be enough but whatever you must do, you must do. Wealth protection is as important if not more important than wealth accumulation. Now where did you keep the phone of your old friend who’s now into insurance?! Protect what you have.
written on 28th dec 2013.
Next suggested article: are you going to be a millionaire?


Comments

  1. Crystal Teh avatar
    Crystal Teh

    Absolutely agree with you 🙂 This year i had top up another half million protection on my insurance. As i always tell my brother and family, if one day any uncertainty happened to me, at least my insurance coverage will maintain their lifestyle for long term. Sometime read the news on newspaper, when something happen to their family, the rest family member is suffer and need help from society. Nowadays walk into private hospital, for minor case such as fever already spend 3k – 5k. Hehe, i will feel heart pain with this money “fly” away if own pay total bill by myself 😛

  2. Hi Charles,
    What is your thought to buy life insurance combine with savings or should the insurances be separated?

    1. Hi Esther, I think if you want buy higher coverage, it should be without savings. However, nothing wrong with buying one with savings and just forget about it till the end, you will be happy to suddenly get a lump sum of money. 🙂 Most important question is always, are you covered sufficiently.

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