No matters how. For insurance matters, we always like to think we are right at the start and along the way; but it is only near to our grave or already has one leg in our coffin then we will know we are about right or far off from being right.
How about insurance? Technically; it is about protection of assets and to cover liabilities i.e. why we pay premiums. But, emotionally, we use LIFE insurance to cover liabilities.
Why? Emotion!!! We are sold emotionally on the need to protect liabilities and cheapness to do so. Over the years Uncle8888 has no LIFE insurance coverage for his three children and his stay-at-home-wife. They are liabilities. They are not assets to be protected. After Mar 2016; Uncle8888 will have no more LIFE insurance protection. When he was at his 30s; he has already thought out carefully and knew very well that his human asset at 60 will become too expensive to be protected and his three children should be able to be on their own. His stay-at-home-wife can retire from home and goes back to work if necessary. Life of an ant is like that. Think too much and plan too far ahead.
After Mar 2016, he will self-insure from his own fund consisting 1. $XX,XXX for emergency medical and health care 2. Medi-Shield Life (self funding from the yearly interests from MA) 3. MA 4. SA 5. RA Why maintaining cash for medical needs? Uncle8888 has never voluntarily touch his MA since day one as it is 4% CAGR. He is interest-wise man! By now, he is already sitting inside his coffin. He knows he is about right on life insurance matters and not emotionally right. Read more? Articles relating to views on insurance matters
Last updated : 14 Sep 2019
I am 63 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 20 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
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