Is TERM LIFE INSURANCE Worth The Cost 🤔❓ - YouTube

Is term insurance worth the cost, -Want to do is make sure that you buy protection for protection sake it's most cost efficient,

It's unbundled, it's simple, RM99 a month for a 30 year old woman, non smoker. You get RM 1 million in coverage, whatever happens to you, total permanent disability, If you die,

your family gets RM1 million. - ya this part I agree, -It's a very simple concept, you

can save all the premiums that you have saved- Yes.

That's paused

And we rewind back to what he say, 30 years old, female, non-smoker.

RM99 per month.

I think he's not telling the entire story. Let me show you why.

Now you can go to the Portal and do a very quick quote.

OK, female non-smoker.

Let's say 30 years old should be 1990 somewhere June,

And then say employment status just put whatever and then salary whatever.

And then you get a quote.

So you can see for one million quote, it is really RM99 per month.

But the thing that you must know that it's RM99/month is for yearly renewable term.

How about yearly level term?

now that is entirely different because there is a difference by 50 percent different, RM144 per month for a yearly level term.

I want to show you how much difference does it make to get one million

coverage, 30 years old, female, non-smoker, when you go for a yearly.

renewable term and X number of years yearly level term.

So you can see if I were to put 10 years term, it's about 100 over per month.

How about 20 years level term?

It's about RM144 per month

Now, if I put here 30 years term, it is 232 per month.

So the premium actually increases as you select the longer duration.

So as I say, that do not be happy when he mentioned RM99 per month,

because that is what it costs on yearly renewal term, now what is yearly renewal term?

Now, let me show you.

It means that you only started RM99, but then the premium actually grows.

will go up every single year, as you can see here, 50 to 59, just now 40 to 49.

So to really compare these apple to apple, you really want to do a table

of comparison like which one is really more worth it between a level term and

increasing yearly renewable term. that you just had an AHA moment.

So you see a lot of this insurance thing ah.

You cannot take things at face value one you have to filter and look past whatever

marketing talk, then you can only see what is the real picture.

So you see, I'm so good, brutally honest.

Dissect this for you.

Please give this a like.

OK boh. As I mentioned,

this yearly renewable term and also yearly level term, which I call as YRT and YLT.

So visually, I need to represent what is YRT and YLT. something like this

OK, YLT the premium are fixed, over your selected duration of cover whereby

for YRT its start at a lower premium, but then it progressively increases to a point

that at the end of the duration it might be much more, much higher than if you were

to buy a YLT at the very same amount of coverage.

So it could actually go sky up to and this is the thing that he failed to mention.

And if you were to compare right which one is

more worth it for the very same thing, in our case its the 30 year old female non-smoker,

what would be the total premium pay for ten years if you were to go

for YRT is about 16 000 for YLT, it's about 14 700.

That is a difference of about slightly more than one thousand.

So the thing is although YRT you

start at a very low premium but over the entire 10 years

your total premium paid will actually be much more, about 1000 compared to if you're going to get

start of at YLT, how how about 20 years?

OK, the very same profile 30 years old female non-smoker.

For 1 million coverage, YRT

You will be paying a total of forty four

thousand in the next 20 years where as for YLT, it's 36 thousand. a big

difference is more like like 8000 ringgit of difference. Alright?

So the thing is, if you can afford to pay YLT premium always opt for YLT

because when it comes to 20 years the premium difference of case of a total premium case is very

huge. How about 30

years?

You will pay one hundred and fourteen thousand when you go for the very same

thing,YRT and for yearly level term, YLT, eighty six thousand only.

So you tell me if this is, again, a total of about 30000,

So the longer is the coverage, the much more the the difference between

yearly renewable term and yearly level term. Eh, are you enlightened or not.

So I could help you save up tens of thousands of dollars on ringgit just

by this one tip alone free for you. Don't you think I deserve a like?

Come on, -From just buying and invest.

There is immense flexibility -yes agree,

Let's say you have RM3000 a year, -this part I agree. -You'd have normally put into an

investment linked plan.

So basically-

separate investment right? - I would just use that to invest the rest.

And you have the universe of investment products to invest in.

it's completely flexible, you can withdraw at anytime, For example koveet happens, we need to spend extra on living expenses

you can withdraw some, with certain instruments, there's no charge for redrawing them and so, you have complete flexibility and it can accomodate changes in your lifestyle

for example you have children, You want to reinvest it in a more aggressive instruments like equities, so that they can have a higher savings.

So, you can afford their overseas education etc. You want to invest in REITs, it's possible, You want to invest in property, that's possible You are not limited at all.

So you want to know how to invest in REITs.

Another lesson I have for you in the upper right hand corner.

Now, if you want to invest in property,

I'm not saying that you should not, but you want to know what is the re-

the reality of the property market today in Malaysia.

Check out Another lesson popping up in the upper right hand corner.

Well, I do agree with the founder of this

online insurance portal, which is a very respectable figure in the industry.

OK, who am I compared to him? I'm nothing.

OK, so that means, like,

this is not about trolling or really about criticizing.

No, because what I want to really want you to catch the message is the facts

not me, not my face, not about me criticizing anyone.

Not so I do agree with him first.

Let's start with that that investment

in insurance should always be separately, done, not mix or combined.

Otherwise it is generally neither cost

effective nor flexible when both are combined.

And I do agree when you say that

you actually always separate, go for pure insurance, just go for insurance.

Not, you know, don't mix up that investment

because there's always much less hassle to switch or withdraw with your investment

if needed when your investment is not done via any form of insurance policy.

Also, if you do it inside insurance policy,

you know that your options would be limited.

Only whatever the funds in your

insurance policy, Whereas what happens in the traditional sense. You're talking about investment-linked plans

Basically, this is a 30 year commitment to not change your investment.

This is a fixed amount and you are limited to this sort of funds offered by the insurance company

starting from here there are a few points that I really disagree.

Let me explain why now.

What I actually disagree with him is the fact that He Said investment policy is

a fixed X number of years, like 30 years kind of commitment.

No, that is not the thing, because any whole life policy is designed to be 100 years old.

But there is nothing to actually stop you from stopping to pay the premium when you

don't feel the need to actually service or have the coverage anymore.

Insurance company, will not actually

point a gun and point to your head like this to ask you to pay a premium no more.

And Bothaina Hawach. But wouldn't you know?

OK, well,

I mean, we all know what lay low may sound like.

I'm talking about the pulp, not more.

Unless you sohai lah, you still expect the insurance company

to cover you, even though you stop paying the premium, can you relate to this scene

in the movie The Hong Kong one smash on the like button?

If you think this parody is on point, the moment you stop paying, coverage stop.

It's a very fair deal it is not locked in

So the thing is, if you hear what you say, you might be misguided and misled.

Now, the thing is, you don't say that you cannot change investment

the amount is lock in investment policy, now that is untrue because you can always

change the investment its not as easy if you were do your normal investment.

But it's not to say that it's lock in and cannot be changed

So it's absolutely untrue

A lot of insurance companies are trying to bundle these things together, we are trying to unbundle it. becase there's a lot of cost that you save if you unbundle it.

He also mentioned about most insurance companies trying to bundle

everything together and he say he's trying to unbundle that, now.

I really want to explain why, if

there are this, this might sound like he's doing the magic behind,

but actually he's not. as if the platform that he's running because

he's the founder of that platform he's saying that they are trying to unbundle

the investment and the protection of insurance portion.

Now, here's the thing, the platform has very little control.

I think the so-call unbundle it because it

is a product design that is actually nothing new.

The fact is, it's all insurers also have a similar kind of term policy.

The fact that if you're a layman,

you might not know about it too much, maybe it's because it's not a popular

product for most insurance agent to

actually recommend or sell.

And they say that that the term policy is probably

the only cheapest life insurance policy that is only available in this platform

for everyone in all scenarios, because no matter how many years

you needed the insurance to cover you wether it's 10,20, 30 years and what ever age you are in.

now there is the implied message.

If you are layman, you might get that message but actually again.

it's also not true. Now in t his subsequent subject.

Let me show you the figures.

Let the figures do the talking right?

This is an example of actionable advice

that I give to my clients during a one on one consultation.

So it's a very hard hitting

And I can be blunt sometimes,

but all in your best interest, Now I've generated ah investment linked policy.

I blacked out the insurance name because I do not want to be associated, you know?

that you think I'm promoting, what ever I have. No! it's not about that right.

But this is an actual investment linked policy

that it generated a quotation for, 30 years female non-smoker.

And if you look at the table, the premium, the annual premium is

actually about a slightly more than 2000 for 30years. so its a 30 years coverage.

Right.

Sustainable, sustainable for 30 years

This is investment in policy okay. The thing about invesment in policy la

That is not like the worst product, not investment in policy.

It is a very something that is very flexible.

It could be designed to three forms or three modes..

And the best way I could actually explain this is I'm

using Transformers the movie, for example, because the movie who is the main character,

Optimus Prime, now Optimus Prime in this robot form.now this is what I call in real insurance and investment.

Combo mode combined, so if investment policy can be

designed in this form or it could be designed. Optimus Prime can transform

into a truck la. It could be designed so that the only

content investment, which is really, really what even I do not recommend it,

I don't do that for my clients is what you know is something that we can agree

on with the founder of the online portal, I share with you,

However, the investment-linked policy can also be designed as a lightweight.

Now, like Optimus Prime, the car, lorry without the container at the back

Now, this is what we call an insurance mode. So, investment policy, it could be designed or quoted in 3 modes.

OK, so the thing is , it's not to say its bad

It's just that probably a lot of agent are designing it in the Optimus Prime robot mode.

Okay so that is bad And

It's even worse if you design it in the middle.

The lorry the lorry form but that is really bad.

Now, the best is that on the on the right modes when you design in a purely light weight

insurance is what I want to take this mode investment policy

I want to compare the premium with a term policy in terms10, 20 30 years for the exact same profile we're

talking about a female non-smoker 30 years old for one million coverage ok

using Transformer Optimus Prime to explain to you what is an investment policy.

Nobody will do that.

Nobody ever think of that first time in the World Guinness Book of Records.

I also proud of it actually I think I'll be for one day already.

So if you don't already smash the like button, please do so.

But if you already smacked on the like button, don't smack it

again, because when you smack on it again then you unlike already.

So don't. If you already smack keep on watching.

Can you

have a look atthis.

You said it would be a bit fanatical about the differences between the two

and the cost between the two

It makes a lot of sense

OK, let me add to that generally the concept is good by Suzy Orman, however.

The context in U.S. insurance industry cannot be applied directly in Malaysia.

I will show you why.

How selfless can one be making this video for you for free?

And I'm not asking you to engage me

for any consultation, although clients that engage us

for consultation, you could see them testimonials

at the upper right hand corner, see what they say, whether they are happy or not.

So investment linked policy If the premium actually

supposed to be fixed about 2000 over slightly more than 2000

for the entire 30 years

So what it means is that if you

think about 10 years, you are paying bout 2000 if you think bout 20 years, you will have about 43000 in total

if you pay the premium for 30 years will be about 63000 , and take this figure.

And then I will compare, OK,

and compare yearly renewable term versus a yearly level term.

And these are the two options. that is available inside

this insurance policy

is these are term policy and then I'm also comparing it against on the

Right mode which is ILP investmening policy

So I want to compare again.

And 10 years and 20 years and 30 years and.