Buying insurance is never a simple process for most people. A lot of questions cross our mind. How much insurance is enough? Am I paying too much for my insurance? Am I over-insured? Am I under-protected? Am I buying the "right" policies for myself and loved ones? etc... etc...

First of all, there is something insurance companies won't tell us - We shouldn't buy too much insurance. Why? Because insurance don't make us rich. Insurance only make the agent, the company and shareholders rich. Therefore, after years of research in Singapore, there are only 5 kinds of policies we should get for ourselves (6 for individuals who are 40 years old and above) to have an adequate coverage. What are those? They are Death, Critical Illness, Hospital & Surgical, Personal Accident and Disability Income. The additional one is Long Term Care.

Secondly, insurance companies won't tell us - Once you settle your Love Program, you don't need to buy anymore insurance, unless there is changes to your lifestyle or expenses!. Any agent were to say that is crazy!:) But if all the policies are measured against your current expenses or lifestyle and is able to hedge against inflation for the future years, it is definitely possible for us NOT to buy anymore insurance once we settled our Love Program.

Thirdly, insurance companies won't tell us - Your Investment Linked Plan have a super high chance of exploding like a time bomb! Huh? Why is it so? Two reasons - High Mortality Cost and Policyholders bear ALL the risk of cash value. Robert Kiyosaki, the best-selling author of the book "Rich Dad, Poor Dad" states in his book Cashflow Quadrant that we shouldn't mix insurance with investment.

The reason is that the high cost of mortality cost will eat up our returns on investment. What if that year is a financial crisis like 2008? Cash Value then are known to drop by 50 to 60%. High chance that the cash value will be depleted and guess who the insurance companies will ask from for premiums?

Lastly, insurance companies won't tell us - You should deposit only 10% of your gross income into insurance bank for your Love Program. Now we know what to buy, what not to buy and what need to be done. The only question lies in how much of my income should be allocate for the Love Program - which in this case is 10%. Most of us are "overspending" on insurance, meaning depositing more than 10% of our gross income into insurance bank. So why 10%? Very simple. After years of research, we found out that in order to cover the abovementioned 5 to 6 areas, the amount comes up to around 10% of our gross. In some cases, it might be even lesser than 10%!:)

In the book The Richest Man in Babylon by George Clarson, he mentioned that Lady Luck ALWAYS favoured those who take action! Be Lucky TODAY!