You are young, just left the university and embarking on your journey to pursue your career. What will be the first thing that you will do? I did something unusual while doing my undergraduate studies.
I saw an insurance company’s advertisement advising people not to put money into tontine but into an insurance plan which is capital guaranteed. (For those younger ones who do not know what a tontine is, please follow the link https://en.wikipedia.org/wiki/Tontine ).
I wrote a letter to the address provided in the advertisement and waited for a response. Yes, a snail mail, no emails nor WhatsApp. You can guess what my vintage by now. I received a phone call a week or so later from the agent assigned to me and that was the beginning of my Risk Management journey.
To cut the story short, in 1988, I was still doing my degree in the university then. I was giving private tuitions and managed to have some spare cash. With this meagre spare cash, I bought a $25,000 insurance that covers Death and Total and Permanent Disability that came with a $39.25/month price tag. (In case you are curious, yes, I am still servicing this insurance policy).
Why did I do that? Well, my late father had just retired, and my late mother was working as a cleaner in some big shot’s office. I thought, what would happen to them if I were to die prematurely? At least I have the decency of not having them to find money to conduct a decent funeral for me. $5,000 could get me a decent send off those days and my aged parents would have $20,000 to get by without me for a year or so. (It cost between $20,000 and $30,000 these days to have an end-of-life arrangement, so don’t underestimate the cost of afterlife arrangement.)
It sounds terrible but it is something we should do as a responsible child, and it is also a reality that premature death could happen to anyone of us. Think about this; your parents are aged and near retirement age, handling the passing of a loved one is bad enough, having them to spend their retirement savings is another impact that many of us have never thought of. Just for illustrations: an additional $30,000 in your parents special account (assuming they are 60-year-old) could get them an indicative additional pay-out of $150 to $200 dollars for life!
You may contact Ray at WhatsApp 8750 8966 to discuss and discover more on this subject matter.
Disclaimer: All information are for informational purposes only and should not be relied upon as financial advice.