One of the objective to invest and to save is for future generation or for your children. People spend hundreds or even thousand per month to buy insurance and takaful.In my opinion, the basic pricinciple of protection is to protect the income earner. For example you must buy insurance for yourself first before buying insurance for you children. The insurance will protect you as a bread winner of the family.
As for myself, even I have some Takaful to protect me and SSPN for my children, buying property for example house is also protection for my family.
My housing loan is protected by Mortgage Reducing Term Assurance (MRTA). Read further from http://www.maybank2u.com.my/consumer/online_insurance/products_services/mortgage_reducing_term.shtml
The advantage of property as an investment for future generation is as below:
- Value of the house is usually appriciate. (Sum vovered by Insurance is fixed)
- Pay the house and get direct benefit (Insurance you pay every month and get benefit only something happened to you or upon maturity of the insurance if applicable)
- MRTA will cover the loan if disability to you
- If you rent the house, the rental will cover your investment and protection. Free house and free protection for you.
But you still need insurance or takaful to cover your medical expenses. MRTA will not cover for you.
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