October 9, 2012

Insurance 101

Thought I should blog about insurance since I recently changed mine and I wish to remember this. Two years ago, I engaged a random  agent from GE to purchase a policy. It included the ususal protection coverage, accident and critical illness coverage as well as investment links. Though it seem pretty diversified, I came to realise (over time) that the coverage that I have (though diverse) was rather measly.

I am no expert in this field, but I learnt that the first "rule of thumb" for a student/young employee is to have a basic life protection insurance coverage first, before investing in other areas. Reason being, it is important to protect ourselves and our families in case of emergency or unforseen circumstances, given that it is quite likely that we have little savings as a student or when we just started out working. And how much should we fork out monthly? An approximately  guide will be 10% of our monthly income. It is also good to start a plan at a young age because the insurance premiums will be much cheaper.

I wish my parents could advise me better on financial matters at times, but I guess they would prefer otherwise. However, I am thankful that God always lead and guide me in the decisions that I make. Be it for my career, school, marriage or daily life. Even for something as trivial as insurance :)

"For this God is our God for ever and ever; he will be our guide even to the end." ~ Psalm 48:14

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