Car Or Life Insurance

oInsuring one's life costs half of what it costs to insure your car. Yet, under-insurance in life coverage exists. Get high-cover term insurance at low-cost to be adequately insured. For most of us, owning a car has been a dream that we have nurtured since our childhood. But once we own one, protecting it by way of insuring it becomes a priority. 

Car insurance is compulsory by law. It is a way we protect ourselves financially in case of damages caused by accidents or a theft. 

While a person may insure a car for RM100,000 at an annual premium of RM2,000, but when it comes to our life, many are still insured for as low as RM1,000 of life cover. This paradox needs to be addressed and getting adequate life coverage should become a priority. 

As a bread earner of the family, one has financial obligations to take care of. In case of an emergency, one has to not only provide enough financial support to the family to enable it to maintain the same standard of living as before but also ensure that the long-term goals of our dependents are not jeopardized. Life insurance acts as an income replacement tool. Without it, one's investments/ assets will have to be liquidated to meet the financial obligations. 

However, buying insurance without properly estimating the amount required is of no use. One should be adequately covered to provide a sizeable amount to the surviving members. As it is important to insure one's car for the right sum, it is more, if not equally important, to have adequate sum assured to take care of life insurance needs. 

It's all about realizing the worth of one's own life. If we can spend to insure our car for one year, can't we spend half of that amount to ensure that our family remains financially protected? Car insurance and term insurance have one thing in common: If nothing happens, there's no claim at the end of the period. But that should not deter someone from avoiding buying life insurance or being under-insured. It's always better to be on the safer, secure side rather than leaving things to chance.