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By Kertar Singh (013-322-8582)
After 18 years of dabbling
in the insurance industry I have decided to write this book as a
guide and subject matter to providing information on insurance. It is
written in very simple English language that even a lay person would
be able to understand it.
Most people think they
know and understand about Insurances the truth is everyone is only
specialize in his own field.
Most of the books,
articles written by financial planners or experts have no field
experience. Everything is on paper which is nice to see can everyone
apply it.
“It’s
not for the one who dies. It’s for the ones who lives”
Life
insurance is a major protection of a family financial security. Human
life present
various need for life insurance. People’s needs can be identical
but never the same. Death can be a source of loss in two ways.
The
first is the love of a spouse/parent which cannot be replaced.
The
second is the loss of income to the family of the death person. With
the income gone it is the family dependents that will suffer. The
dead person needs to be buried and that costs money.
“Money
is not everything but everything needs money”
Basically
insurance is a pool of fund where all the members pay a small fees to
get a cover and the insurance company manages the money (fund).
Example
1.
Mr.
A is 30 years old and he want a cover of $100,000 if anything happen
to him, this money will be given to his family and he will have to
pay 3% of the $100,000 which will be $3,000 per year.
Example
2.
Mr.
B is 35 years old and he want a cover of $200,000.Anything happen to
him the family will receive $200,000 he have to save more let says
3.5% which will be $7000 per year because he is 35 which have higher
risk and the cover is $200,000 more than Mr A.
“No
matter what stage in life you are in now. Ask yourself if I die,
would my loved ones have enough money to live on?”
“If
I am disable who is going to take care of me?”
Example
3.
Mr.
C is 35 years old he want a cover of $200,000 but he is having a
medical problem. He may have to pay much more because of high risk
not only he will have to pay $7000 but he may also have to pay a
loading say 25% .Which is $1750 extra only than it is fair to Mr. A
and Mr. B
Basically
the younger you are the lesser you pay because you may not have any
health problem. The older you get the more you have to pay for the
same amount. Buy when you are young.
Not
only you will have more saving when you are old you will be able to
get a very high cover for yourself if you start early in life.
You
need to review your policy every 3 years to 5 years. If you don’t
review your policy 3 to 5 years you can have problems as you may not
have the latest update cover and inflation will eat up your money.
“A
small payment today can make a big difference to how well your loved
ones do after you’re gone or you are disabled”
About the author:
Kertar Singh has joint
Great Eastern Life Assurance in August 1995 as a part time agent.
Became a full time agent
in 2000 after retiring from the army after 22 years.
He deal with all kind of
Insurance from Life Insurances to General Insurances and Will
Writing.
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