Seeking advice on Term Insurance

[simwb90]

So following my previous thread on surrendering my ILP
http://forums.hardwarezone.com.sg/money-mind-210/crossroad-decide-regarding-ilp-5113665.html
i've submitted the form and it's been processed. so that's the end of that.

As of now, I have the following policies:

1. AVIVA GTL which all dudes who've been through NS will have.

2. PruFlexicash that will mature when i hit 40ish.

3. PruMedishield that deducts premium from my CPF.

The earlier thread had seniors advising that Term Insurance would be more appropriate especially if i intend to/already am handling my own investments (hence my decision to cancel the ILP).

abit of bio data before we start.
Male, 25, Non-smoker

A couple of questions:

q1. How long should a term cover? I am aware that there are various periods. is it more advisable to cover all the way to 65 or cover in short periods?

q2. What should a term cover? I know CI, TPD and death are
among the more important ones. anything else i left out?

q3. Is there anything else i need to get along with term or would a term plan suffice?

A couple of questions unrelated to term:

q4. is there any sort of review that i need to do after i get term?

q5. what are some of the important things to look out for before signing? i don't really want to go through the pain of terminating another plan *sighs*

q6. is there a reason to buy plans across various insurers? because i personally prefer to stick to one so that everything is in one spot. easy management.

hope the seniors here can help. thank you very much *bows*

 

[Perisher]

So following my previous thread on surrendering my ILP
http://forums.hardwarezone.com.sg/money-mind-210/crossroad-decide-regarding-ilp-5113665.html
i've submitted the form and it's been processed. so that's the end of that.

As of now, I have the following policies:

1. AVIVA GTL which all dudes who've been through NS will have.

2. PruFlexicash that will mature when i hit 40ish.

3. PruMedishield that deducts premium from my CPF.

The earlier thread had seniors advising that Term Insurance would be more appropriate especially if i intend to/already am handling my own investments (hence my decision to cancel the ILP).

abit of bio data before we start.
Male, 25, Non-smoker

A couple of questions:

q1. How long should a term cover? I am aware that there are various periods. is it more advisable to cover all the way to 65 or cover in short periods?

q2. What should a term cover? I know CI, TPD and death are
among the more important ones. anything else i left out?

q3. Is there anything else i need to get along with term or would a term plan suffice?

A couple of questions unrelated to term:

q4. is there any sort of review that i need to do after i get term?

q5. what are some of the important things to look out for before signing? i don't really want to go through the pain of terminating another plan *sighs*

q6. is there a reason to buy plans across various insurers? because i personally prefer to stick to one so that everything is in one spot. easy management.

hope the seniors here can help. thank you very much *bows*

q1. preferably as long as it's cheap enough to do so. Up until 65 is the norm.
q2. yup, those are the basics
q3. hospitalisation plan
q4. not sure what kind of review you are referring to
q5. term plan is pretty straightforward, for specific terms and conditions though, it's hard for anyone to dissect for you. You can do a comparison using this
http://www.mas.gov.sg/News-and-Publications/Media-Releases/2015/compareFIRST-and-DPI.aspx
q6. not really much benefit. their plans do differ slightly so what one missed maybe covered by another.

Lastly, I need to declare that I'm not a insurance agent or any financial expert so take my words with a pinch of salt.

 

[galkkl]

A couple of questions:

q1. How long should a term cover? I am aware that there are various periods. is it more advisable to cover all the way to 65 or cover in short periods?

q2. What should a term cover? I know CI, TPD and death are
among the more important ones. anything else i left out?

q3. Is there anything else i need to get along with term or would a term plan suffice?

A couple of questions unrelated to term:

q4. is there any sort of review that i need to do after i get term?

q5. what are some of the important things to look out for before signing? i don't really want to go through the pain of terminating another plan *sighs*

q6. is there a reason to buy plans across various insurers? because i personally prefer to stick to one so that everything is in one spot. easy management.

hope the seniors here can help. thank you very much *bows*

Hi,

Just sharing my thoughts with you.

First of all, you do not need term insurance if you do not have any dependants. If you do, I think that up to age 65 is a reasonable age, unless you wish to leave behind a bequest of sorts.

Most term insurance includes TPD, and also have a rider for CI. CI is another difficult subject, some people feel you should have it, some people feel you don't. Personally I bought the CI rider as well, as I think of it as an insurance for the loss of income due to the CI.

And yes, you should most definitely get a hospitalization plan (integrated shield plan). Most people agree that this is the most important insurance to get.

If you have spare cash, you can also consider getting an accident plan, which would cover some medical bills should you get into an accident (w/o getting hospitalized).

Just my 2 cents.

 

[AhPek_Lion]

1) cover till 65 is usually sufficient cos by then ur dependents have grown up and u shld have substantial savings

2) that's abt all to cover for term

3) upgrade medishield with rider... And perhaps accident plan (optional)

......

6) if I not wrong, govt protect each insurance company up to certain amt only. So best don't put all ur eggs into one basket

 

[simwb90]

hmm so based on the inputs so far,
my understanding is as such
1. get term covered to 65 if i can afford it
2. CI, TPD and death is sufficient
3. consider a hospitalisation plan

how is hospitalisation plan different from the medishield plan? or is it some adjustments that i need to make?

oh the review i was talking about was readjusting my insurance portfolio at different stages in life lor. there's always this saying floating around that one should adjust their portfolio based on their stages in life.

 

[chopra]

Ask for quotation from

1. This subforum term insurance thread. All agents will pm u
2. From our government comparefirst.sg
3. Diyinsurance which gives u 30% rebate in first year

Sent from ew line is so sloooow using GAGT

 

[Jwlng]

hmm so based on the inputs so far,
my understanding is as such
1. get term covered to 65 if i can afford it
2. CI, TPD and death is sufficient
3. consider a hospitalisation plan

how is hospitalisation plan different from the medishield plan? or is it some adjustments that i need to make?

oh the review i was talking about was readjusting my insurance portfolio at different stages in life lor. there's always this saying floating around that one should adjust their portfolio based on their stages in life.

It is a fallacy to just plan to get term insurance up till age 65 and think that by then your dependents would have grown up. What about your CI cover? How many friends and family members do you know live to a ripe old age past 65 and simply just pass on without any form of sickness? Have you considered that you may become a liability to your children just because you did not plan to have any CI cover past 65?

Term insurance is good for the early years of your working life, probably when you are juggling multiple debt repayments due to housing, wedding or family burden. This will give you the highest cover for the lowest premium, but there will come a time where you will have to decide whether to upgrade your term plan to a life plan such that you will still be covered in your later years. This feature is not available through the AVIVA GTL, so you may wish to consider term plans from other insurers. This will be one of the items to be discussed with your financial planner when you progress through life. A yearly review will be good to just make sure all your needs are met.

Nonetheless, if money is not an issue, I would suggest getting a whole life plan at the start. This will ensure that you pay a fixed amount each year and at the end of it all, if you so wish, there is still a significant cash value which you may find handy in your twilight years.

With Medishield Life coming online, there will be minor changes to the existing shield plans, but because of your age, your premiums will largely be paid through medisave. I would also recommend getting the most expensive rider to cover the co-insurance and deductible components if you can afford it. the key reason is the speed at which you will receive any treatment when you require it and having the option of choosing the best doctors without worrying about the cost. At your age, you will just be paying an additional $110 cash per year for the peace of mind. IMO, it is totally worth it.

PM me if you wish to have more info.

 

[chopra]

It is a fallacy to just plan to get term insurance up till age 65 and think that by then your dependents would have grown up. What about your CI cover? How many friends and family members do you know live to a ripe old age past 65 and simply just pass on without any form of sickness? Have you considered that you may become a liability to your children just because you did not plan to have any CI cover past 65?

Term insurance is good for the early years of your working life, probably when you are juggling multiple debt repayments due to housing, wedding or family burden. This will give you the highest cover for the lowest premium, but there will come a time where you will have to decide whether to upgrade your term plan to a life plan such that you will still be covered in your later years. This feature is not available through the AVIVA GTL, so you may wish to consider term plans from other insurers. This will be one of the items to be discussed with your financial planner when you progress through life. A yearly review will be good to just make sure all your needs are met.

Nonetheless, if money is not an issue, I would suggest getting a whole life plan at the start. This will ensure that you pay a fixed amount each year and at the end of it all, if you so wish, there is still a significant cash value which you may find handy in your twilight years.

With Medishield Life coming online, there will be minor changes to the existing shield plans, but because of your age, your premiums will largely be paid through medisave. I would also recommend getting the most expensive rider to cover the co-insurance and deductible components if you can afford it. the key reason is the speed at which you will receive any treatment when you require it and having the option of choosing the best doctors without worrying about the cost. At your age, you will just be paying an additional $110 cash per year for the peace of mind. IMO, it is totally worth it.

PM me if you wish to have more info.

This is v inaccurate.

1. There are term plans that go up to 99yr.
2. Some ppl dun opt for CI as if u kena CI, it is usually a matter of years before u die; u will get e money in a matter of yrs anyway. The key to this perspective is -- is this plan for u to pay for ur CI bill or to pass down to ur inheritors?
3. Introducing whole life is inaccurate as there is investment component in it. Please instead introduce longer term plans.
4. How is the $110 derived? You r from which company? U know im e super hard working that compiled all the shield riders from all the different coys? I highly doubt ur figures.
Sent from ew line is so sloooow using GAGT

 

[chopra]

Nah.

Gpgt.

Sent from ew line is so sloooow using GAGT

 

[wts2013]

This is v inaccurate.

1. There are term plans that go up to 99yr.
2. Some ppl dun opt for CI as if u kena CI, it is usually a matter of years before u die; u will get e money in a matter of yrs anyway. The key to this perspective is -- is this plan for u to pay for ur CI bill or to pass down to ur inheritors?
3. Introducing whole life is inaccurate as there is investment component in it. Please instead introduce longer term plans.
4. How is the $110 derived? You r from which company? U know im e super hard working that compiled all the shield riders from all the different coys? I highly doubt ur figures.
Sent from ew line is so sloooow using GAGT

hahaha, u have not done sufficient research to understand wholelife policies correctly, u shld have seen the real life example moi posted comparing wholelife to BTIR, wholelife is better, especially when u dun know how the market will perform, u are assuming your BTIR will get 5% what if u dun, hahaha

CI is important, not all CI will result in death in short years, hahaha

read this from the expert

http://forums.hardwarezone.com.sg/96671241-post792.html

http://forums.hardwarezone.com.sg/96677359-post794.html

 

[Perisher]

hahaha, u have not done sufficient research to understand wholelife policies correctly, u shld have seen the real life example moi posted comparing wholelife to BTIR, wholelife is better, especially when u dun know how the market will perform, u are assuming your BTIR will get 5% what if u dun, hahaha

CI is important, not all CI will result in death in short years, hahaha

read this from the expert

http://forums.hardwarezone.com.sg/96671241-post792.html

http://forums.hardwarezone.com.sg/96677359-post794.html

You do realise even he said term or wholelife though he recommended wholelife?
Your example is a policy that is no more.

BTIR outperform most current wholelife policy based on track record so you shouldn't be saying wholelife is better, it's misleading.

 

[blurblur123]

Agents always present half truth... How to trust them? Realize those who push for btir are genuine cos they gain nth from you... Just spreading knowledge...

 

[wts2013]

You do realise even he said term or wholelife though he recommended wholelife?
Your example is a policy that is no more.

BTIR outperform most current wholelife policy based on track record so you shouldn't be saying wholelife is better, it's misleading.

hahaha, because u dun know, u assume no more, it exists, dun assume because u dun know, pls do your research, hahaha

u also dun mislead, u have not done your research, here is a forum for all to share their experiences, nobody is right or wrong, so dun just jump to conclusion, there is no real life experience shared on BTIR, hahaha, all your conclusions are based on assumptions, assumption u will make 5-7% return on your investment, but alot depends when u enter the market, hahaha

Look at 1996 to 2015, how would your investments perform? U dun know the future, if I tell u a big crash is coming, your investments will be wiped out, hahaha, face the facts, face reality, hahaha

 

[wts2013]

Agents always present half truth... How to trust them? Realize those who push for btir are genuine cos they gain nth from you... Just spreading knowledge...

hahaha, I dun make decisions based on trust, pls do your research, dun trust anyone, if u fail, no use blame those u trust, too late, hahaha

 

[blurblur123]

hahaha, I dun make decisions based on trust, pls do your research, dun trust anyone, if u fail, no use blame those u trust, too late, hahaha

I research a lot to say tt... Used to have two endowment plans cos agents like u keep using the illustration to give the wrong impression... 4.25% is only just an illustration, not guarantee... So stop using tt to justify that stock investments will not give u 5% returns. I got a good 5% returns... Better than some subjective figures lol

 

[wts2013]

I research a lot to say tt... Used to have two endowment plans cos agents like u keep using the illustration to give the wrong impression... 4.25% is only just an illustration, not guarantee... So stop using tt to justify that stock investments will not give u 5% returns. I got a good 5% returns... Better than some subjective figures lol

again u are making lots of assumptions cos u dun know, I'm not an agent, already clearly declared in the post in another thread, just because u chose the wrong plan, u condemn all, hahaha

u dun know enough, endowment is different from wholelife, hahaha

 

[Perisher]

hahaha, because u dun know, u assume no more, it exists, dun assume because u dun know, pls do your research, hahaha

u also dun mislead, u have not done your research, here is a forum for all to share their experiences, nobody is right or wrong, so dun just jump to conclusion, there is no real life experience shared on BTIR, hahaha, all your conclusions are based on assumptions, assumption u will make 5-7% return on your investment, but alot depends when u enter the market, hahaha

Look at 1996 to 2015, how would your investments perform? U dun know the future, if I tell u a big crash is coming, your investments will be wiped out, hahaha, face the facts, face reality, hahaha

Erm, may I emphasize 'your example', 'your NTUC living policy', pretty specific, is no more. Yes, read that again before you accuse me of dunno whatever.

I'm not jumping to conclusion nor misleading, I'm basing on numbers and figures that has already pass and is history whether you participate in it or not.
Just because you have never been in a A&W fastfood restaurant in singapore back in the 90s, doesn't mean it don't exist or is assumptions.
It's a fact, face that reality.

As for when you enter the market, it's irrelevant when you DCA into the market over the long term.

 

[Perisher]

Anyway, I'm guessing you are referring to Vivolife policy with limited premium?
http://deluxeforums.hardwarezone.com.sg/money-mind-210/ntuc-vivolife-3075631.html

 

[Perisher]

again u are making lots of assumptions cos u dun know, I'm not an agent, already clearly declared in the post in another thread, just because u chose the wrong plan, u condemn all, hahaha

u dun know enough, endowment is different from wholelife, hahaha

That's why specifying exactly which plan you are talking about is important which you still doesn't get it.

 

[wts2013]

Erm, may I emphasize 'your example', 'your NTUC living policy', pretty specific, is no more. Yes, read that again before you accuse me of dunno whatever.

I'm not jumping to conclusion nor misleading, I'm basing on numbers and figures that has already pass and is history whether you participate in it or not.
Just because you have never been in a A&W fastfood restaurant in singapore back in the 90s, doesn't mean it don't exist or is assumptions.
It's a fact, face that reality.

As for when you enter the market, it's irrelevant when you DCA into the market over the long term.

hahaha, face the facts, dun pick just to win, u know and I know what u are talking about which dun exist,

the living policy real life example vs STI ETF investment from 1996 to 2015 shows u clearly if u DCA, u will lose out to wholelife, face reality, it is based on when u purchase the insurance. Whereas your projected returns for BTIR is based on assumption that market will perform 5-7% based on best periods of the STI, hahaha