Hi, my name is Ka Hoe and I’m the founder of J Advisory. And today I’m back with another money misconception, which I want to share with you. I got a text message from 1 of my client last week and he basically asked me like
And I wanted to share this video to many people because I think a lot of you have the same thought, right? So what I want to share here is that insurance and savings are not the same, right? They are opposite ends.
So if you were to put RM 200 per month into insurance, after 10 years, you’ll be very different from if you put it into fixed deposits is because, there is a certain cost in insurance, that would take out to purchase some form of protection for you in the event that, if mishap happen or emergency fund or when ever you get hospitalized right?
And the whole reason why you want to get saving, or put money aside for saving is really because we want to save it up for certain financial goal like education for children, our retirement, or any short-term financial goal, right?
So you really need to decide initially that you cannot be one size fits all although maybe perhaps when, insurance was introduced in the early days. They wanted to encourage people to get it, So they always sell it in such a way that is a form of savings. And of course, we all know about savings plan, right? You’ll be asking me like hey, so what about saving plan?
Savings plan is really a different animal because you work very well if the saving plan return able to give much higher return than FD, but that is another topic for another day, but even in saving plan right, there still a component in the saving plan to purchase insurance. So it won’t be the same for if you compare apples to apples if you would x-ray both right?
So the reason why I wanted to share this because a lot of times especially in this crisis many people are trying to conserve money. So 1 of the areas, especially for us, when we help people turn around their financial, is to look at Insurance to see how we can conserve and to see how we can optimize the coverage at the same time, right? So if you are 1 of them do reach out to us leave a comment below and we’ll definitely reach out to you. Take care guys.