Insurance? Or... Any Investment Vehicles?

it's actually depends on our current economic condition, job, family background and mind setting. insurance shall not be adopted as an 'investment' even if it's formed under the same class - money appreciation.

one should has to understand the purpose of insurance or any form of investment before making decision to buy either one or both.

insurance is for protection. in case of any accident, we may face with 2 situations : survive or dead. and if survive, we also face 2 situations : normal (including non-serious injuries) or disable i.e. paralyse. i list down the consequences here:-

1. survive + normal = pay hospital bills, losses.
2. survive + disable = pay hospital bills, losses and lost job.
3. dead + alone = safe.
4. dead + family = family lost a breadwinner.
or
5. chronic disease + money = pay hospital bill, nothing to worry.
6. chronic disease - money = charity?

if we fall under 1,2 & 4, it is very crucial to us to plan about what kind of protection we need. if we are a man on the street, and our daddies are not a wealthy guys, i recommend insurance is the best. unit trust is good if you're not facing any bad incident or chronic disease for the whole life, but hospital bill is very high. remember, hospital bill is very high. if you wanna wait for any charity body to help... it's not very promising.

make a right decision to ensure that nobody will suffer if something happen to us someday.

Things to Consider Before Applying Credit Cards

using credit card sometimes similar with borrowing with 'along' or 'ceti', it involves charges. before you agree to open a credit card account (via agent or at bank), don't neglect its terms and conditions. carefully read to avoid hidden charges. don't simply believe in 'no fees' or 'free annual fees' or any 'free' terms. you have to read the terms and conditions. the following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application.

1. Annual Percentage Rate
- it is a measure of the cost of credit, expressed as a yearly rate. make sure it is disclosed before you become obligated on the account and on your account statements. the issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.

however there's some plans called variable rate. and you have to ensure that the rate may change and how it is determined - which index is used and what additional amount to determine your new rate.

2. Grace Period
- a free period you have before the due date that allow you to avoid finance charge by not doing the fully payment. example, as the bill reaches, you still have 10 days before the due date.

3. Annual Fees
- if it says it's free, read again to make sure it's really free. it must be disclosed after all.

4. Transaction Fees & Other Fees
- some charge you a fee if you use the card to get a cash advance, late payment, or exceed credit limit. some charge a monthly fee whether or not you use the card.

in a nutshell, don't throw away the terms & conditions, even if the agent gives you a prompt briefing that makes you happy to use the card. my own experience, they said no annual fees, instead they charged me on monthly fees...