What makes me qualified on giving any tips on insurance? Very simple, I once had been paying premium that was up to 40% of my income. That’s was a time that I didn’t really earn much. 40% of my income, that’s a lot, in most people opinion. But that point of time, I really do not know much about insurance, and of course some “Financial Advisor” took advantage of that, kept asking me to buy, buy and buy.
When I was in financial stress few years back, those policies doesn’t come in handy. Some lapse without maturing, thus I lose money to the Insurance company. Here, I am not complaining or blaming them, I took responsibility for my ignorance. After that I studied about insurance, I even join them for a while to learn more about insurance.
1. Educate yourself about insurance before making any decision.
2. Talk to people whom you think has knowledge about insurance beside Financial Advisor.
3. Find out what you really need. Insuring yourself in the areas of hospitalization, illness and life insurance should be priority.
4. Endowment, saving or investment-link insurance should not be main objective. Leave investing to other investment vehicles that gives much more returns.
5. Find a trustworthy Financial Advisor. Most are driven by money, so choose carefully.
Of course, there are many other types of insurance. Like home insurance, car insurance that are a must if you own a home or car. These type of insurance can’t be avoided.
Most importantly is to manage your finances properly. Setting aside 20% to insurance should be enough.

