TOTAL INSURANCE POLICIES REVIEW
Total Insurance Policies Review
The majority assume that once we have an insurance policy(s) in place it will be 'good' forever e.g., next 20-30 years. But this is not true because of one or more of the reasons below:
Our goals and priorities changes and therefore some of the investment linked insurances are outdated in relation to our coverage, returns and goals. Another factor is obviously our past budget which may actually limit our subscription to a policy that is less suitable and therefore a need to revise to better reflect our current needs and goals is necessary. Again, often insurance agents would load you with insurance policies and across time there are unnecessary overlaps and consequently the cost. All these and more is an issue of Suitability, and need review.
20 years ago the critical illness coverage is for twelve or more diseases and it has slowly climbed to 36 and more currently. It is therefore necessary to review your coverage for your premium paid and in line with more current risk of diseases. It is an issue of Sufficiency.
When you bought an insurance 20 years ago, could be bought by parents, the coverage may not be sufficient due to the high medical inflation rate estimated at 100% increase every 3 years. An annual limit of RM100,000 or lifetime limit of 1 Million 20 years ago seems sufficient. But currently a annual limit of 1 million and an unlimited lifetime limit is common - for almost the same annual premium! Again, this is an issue of Sufficiency and Sustainability.
Financial planning have to take into account our total financial commitments, financial instruments, value and net worth, and also financial returns, which will certainly impact the priorities and needs, risks and returns of our collective insurance policies. This is an issue of Synergy.
We had done countless reviews, and even very current policies, and often the above issues of Suitability, Sufficiency, Sustainability and Synergy are not taken into consideration resulting in both gaps and overlaps in the insurance policies which translate into unnecessary cost and risks, which the insurance itself is suppose to cover.
Contact us for an arrangement.