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Buy an insurance. What matters?

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  1. #11

    Join Date
    Dec 2002
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    薄扶林
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    47,964

    I guess you're right. Go with what the experts say and get insured.

    Contact any intermediary and buy whatever they recommend. Would not be surprised if a few PM you before the end of the day.

    Fiona in HKG likes this.

  2. #12

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    I think these pay 100k plus insurance plans are risky. Make sure you only consider it with a big brand. The terms are almost impossible to understand.

    There are definitely higher yielding options too.


  3. #13

    Join Date
    Feb 2011
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    Hong Kong
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    6,317
    Original Post Deleted
    I've heard this too but not sure if it happened with the big companies. Mostly was being mis-sold by the sales person. I know my guy told me 4% interest per year but then found it that it is only 4% of any dividend but no dividends were declared!

    I won't do it again and I hope I see money in the future from this.

  4. #14

    Join Date
    Mar 2009
    Location
    Hong Kong
    Posts
    2,260

    the weird thing is that every investment i have made directly and personally e.g. stocks, property, businesses etc. have made money.

    the only ones which i have lost money are those where i just put money in and allow the banks or insurance firms to make the decisions e.g. HSBC and Chinalife.

    maybe its just luck, but this is why i dont put any more into these investment insurance schemes. The only insurance i do have are the essentials like home, fire and medical.

    shri and Mrs. Jones like this.

  5. #15

    Buying insurance for healthcare purposes and buying insurance for wealth investment are two different things and should be considered separately.

    Buying health insurance really depends on your view of the Hong Kong public health system.

    Buying insurance for wealth investment is generally inefficient and not the best way to go. You'll most likely get more bang for your buck by buying pure insurance for your insurance needs and investing in a proper investment plan for retirement purposes.

    Don't let them talk you into buying insurance when you're young as it's cheaper now. It really depends on what you want the insurance for. If you're single, independent and have no dependents then who are you buying the insurance for? However if you're the sole/major breadwinner with a newborn baby then it may well be a good idea.

    shri, z754103 and Fiona in HKG like this.

  6. #16

    Join Date
    Mar 2010
    Posts
    238

    Apart from health insurance, any other insurance product you buy should ideally be linked to a risk that you are insuring against.

    Say you just bought a flat with a mortgage for HKD2,000,000. Your risk is that you die and your wife or whoever would need to pay that mortgage. What you want is a 5-year plan for HKD2,000,000 and then reduce it every five years along with the decrease in the outstanding mortgage.

    Many insurance products are "whole life" meaning you have to pay until you die or the product matures. The downside with these products is that although the maturity benefit is attractive, you could have saved up that amount anyway if you are a disciplined saver.

    Just think about how the insurance company works : it receives premiums for which a large chunk goes to the agent's commission, another chunk goes to paying the back-office staff and rent etc. What is LEFT is then pooled and invested.

    shri and Drunken Master like this.