The Pros and Cons of buying a life insurance

Most people are more familiar with the pros, 

i. Your family get a sum if you accidentally die prematurely or

ii. You get a sum when you faced terminally ill deceases or critical deceases

iii. It can be used by rich to transfer wealth in countries levy inheritance taxes

Etc Etc. 

Few people are familiar with the cons, 

i. Basically for some, they never recoup back the premium they paid to be insured against the risk

ii. It is not an efficient form of investment, especially for life insurance came with an investment plan, there always be a clause stating that, actual investment return depending on the fund managers performance.

iii. If you can keep paying the premium, you keep enjoying the benefit. But once you failed to make payment once, you forgo everything you accumulate in the past. 

iv. It literally follow the contract wording when came to decide the payout. And, most of the people who buy the life insurance, actually don't know the difference between type of diseases cover, or structure of payments. 

Last but a few, 

i. In malaysia where no inheritance taxes are levied, it matters less if you can used the life insurance to transfer the wealth. (although we do have tax exemption for life insurance, the amount exempted is combined with EPF contribution, which means when EPF contributions exceed RM6,000 per year, you receive no tax exemption for amount pay for life insurance.)

ii. If your family don't need you to leave a bequest, then you have no need to buy a life insurance. 

iii. Some big corporations do provide group life insurance, you can check whether you need to go for beyond.