People are living longer, life expectancy for women is 76 years. For men it's 72. With this kind of longevity, people have got more than 20 years after retirement. 60 would be a more ideal retirement age.
People are marrying later too. Which means they are having children later in life. If a person has a kid at the age of 35 and retires at 55, the odds are that his child at 20 would probably still be at university or college and his education require financing.
On average, the Malaysian household spent 5.7% on education last year. With the cost of education rising by 6% each year, this is expected to climb steadily.
While parents might buy an education insurance plan for their children, but most of them will find that the amount is insufficient. More often than not, parents are willing to give up “everything”, including their own retirement fund for the kids. Which leaves them in a vulnerable position in their old age, unless of course their children provide for them.
As for life insurance, only 40% of Malaysians are covered. This is a small number compared to 100% in Singapore, 80% in the United States and 400% in Japan (where one person has four policies on average).
And even if one has savings from the EPF or bank account, people should still worry about retirement. This is because without a new source of income, that money would run out. This is especially so if one runs into health problems which is common when people grow older.
Medical inflation is easily 15% each year. And this could really eat into the savings. The medical bill is just like as a “hole” which if not plugged would leak away one's entire retirement and savings.
So one of the solution to overcome this is by having life insurance that provides protection and peace of mind for you and family if you are diagnosed with health problems.
Want some advice about buying life insurance ... email to : nazrismm@yahoo.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment