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Best Term Insurance Plan(Do Not Solicit for Pm)

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Old 23-02-2014, 11:35 AM   #31
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from my calculation based on my age (26 yr old), 500k will drop to become around 82k with 3% inflation at the age of 85. likewise, total premium paid will be 55k with 3% inflation.
Probably have to buy more insurance as income rises..I am also 26...

55k? I got 29k 170k paid

Last edited by cookieemonsterr; 23-02-2014 at 11:37 AM..
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Old 23-02-2014, 11:40 AM   #32
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Probably have to buy more insurance as income rises..I am also 26...

55k? I got 29k 170k paid
oops. I use Pruterm vantage quotes instead...

Yeah, I am thinking of buying another term insurance when my income is higher... probably get a 1 million coverage...
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Old 23-02-2014, 11:57 AM   #33
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is my calculation wrong? please correct me if so. thanks.
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Old 23-02-2014, 12:09 PM   #34
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is my calculation wrong? please correct me if so. thanks.
pruterm vantage at 163 till 85 will cost u 120k, reduced amount hence is 20k
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Old 23-02-2014, 12:12 PM   #35
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actually the more you read into the numbers, it somehow appears like its just some maths done to present plans in different ways. So ultimately it boils down to whether u feel its necessary to be insured for life or for a specific term.

if you pay for life plans within 25 years, u will forgo inflation that could have helped u if u bought term, but the variable component in life might make up for it..
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Old 23-02-2014, 12:23 PM   #36
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pruterm vantage at 163 till 85 will cost u 120k, reduced amount hence is 20k
I see. How I calculate is that I took 3% inflation times the amount leftover.

for example, in the first year:

1956 (no change in amount)

at second year, the amount will become 1897.32

then third year, it will be 1840.32...

yeah, I agree with u that it is just numbers but I want to learn if my calculation is correct or not. so it will allow me to make a sound decision...

Cos the reason why I choose this term plan is because the amount of premium I pay will still be lesser than my coverage...
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Old 23-02-2014, 01:03 PM   #37
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I didnt do the calculations on my own haha. I used this website - i hope the calculations are right.

Inflation Calculator - Save Enough to Account for Inflation

But the idea is the same as you sujggested. The money I need to pay for my term till 99, counted in todays real value accounting for future inflation.

Guess that is what the reduced amount means. So at the end of the whole term, i would have paid 20k in todays value for 80k in coverage in todays value. I would think at any point throughout the 65 years of paying, there will be this 1:4 (roughly) ratio? assuming annual inflation of 3%.

Let me use a concrete example and please help me correct if I am wrong.

I was quoted TM Legacy Plan with 200k death 200k CI (including early CI) and 200k TPD at $235/month for 25 years. Life coverage except TPD till 70

Just for comparisons sake I will use 85 years as reference point. In todays dollars, I would have paid 12k for a coverage of 33k (at the 85 year mark with an additional 4k in variable component for death in todays dollars if the policy returns hits 4.75%).

For the TM term, 500k coverage for Death/CI/TPD up till 85 and 70 for TPD. $238/mth

At 85th year, in todays dollars, I would have paid 29k for a coverage of 84k.

I understand we will need to do more data points other than 85th year for better comparison..not sure if I am right, but good if someone can support/refute this

Last edited by cookieemonsterr; 23-02-2014 at 02:23 PM..
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Old 23-02-2014, 02:20 PM   #38
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I didnt do the calculations on my own haha. I used this website - i hope the calculations are right.

Inflation Calculator - Save Enough to Account for Inflation

But the idea is the same as you sujggested. The money I need to pay for my term till 99, counted in todays real value accounting for future inflation.

Guess that is what the reduced amount means. So at the end of the whole term, i would have paid 20k in todays value for 80k in coverage in todays value. I would think at any point throughout the 65 years of paying, there will be this 1:4 (roughly) ratio? assuming annual inflation of 3%.

Let me use a concrete example and please help me correct if I am wrong.

I was quoted TM Legacy Plan with 200k death 200k CI (including early CI) and 200k TPD at $235/month for 25 years. Life coverage except TPD till 70

Just for comparisons sake I will use 85 years as reference point. In todays dollars, I would have paid 33k for a coverage of 33k (at the 85 year mark with an additional 4k in variable component for death in todays dollars if the policy returns hits 4.75%).

For the TM term, 500k coverage for Death/CI/TPD up till 85 and 70 for TPD. $238/mth

At 85th year, in todays dollars, I would have paid 29k for a coverage of 84k.

I understand we will need to do more data points other than 85th year for better comparison..not sure if I am right, but good if someone can support/refute this
that is what I did too. I was quoted $297/month for 300k coverage in Tokio Marine legacy lifetime...

yet for the term, I could get a higher coverage with a lower amount... in my case, Pruterm vantage... I am also considering Tokio Marine Enhanced Term but my IFA is not keen in recommending this.

Therefore, I come to the conclusion that term insurance is more "wu hua" than life insurance... the cash payout from life insurance is just a marketing feat since many people would like to get some cash back... I guess in the end, it is just how we see these numbers.
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Old 23-02-2014, 02:37 PM   #39
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that is what I did too. I was quoted $297/month for 300k coverage in Tokio Marine legacy lifetime...

yet for the term, I could get a higher coverage with a lower amount... in my case, Pruterm vantage... I am also considering Tokio Marine Enhanced Term but my IFA is not keen in recommending this.

Therefore, I come to the conclusion that term insurance is more "wu hua" than life insurance... the cash payout from life insurance is just a marketing feat since many people would like to get some cash back... I guess in the end, it is just how we see these numbers.
Hi sorry, the ratio for life is abt 1:3 while for term is abt 1:4 for the same amount of money put in. I miscaculated. Hope i still did calculate it right. It is not 33k, its 12k

But I suppose it is not the withdrawal that I find attractive but just the fact that it is life. It is like an insurance to ur term insurance. If I cover term to 85, and something happens beyond that, then I have my life policy to fall back upon (on top of hospitalization, medisave, medishield, savings etc). Obviously, if after 85 my spouse or me is around and if something happens to either, then they will get something (more) to cure/give I suppose. But if only one is around by then, then can cash out lo ha. It just leaves the option open

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Old 23-02-2014, 02:38 PM   #40
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Hi sorry, the ratio for life is abt 1:3 while for term is abt 1:4 for the same amount of money put in. I miscaculated. Hope i still did calculate it right. It is not 33k, its 12k
hahaha. I think we r correct in our calculation...
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Old 23-02-2014, 02:53 PM   #41
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Out of curiosity, is TM the only one giving term policies covering up to 85 years old?
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Old 23-02-2014, 02:59 PM   #42
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Out of curiosity, is TM the only one giving term policies covering up to 85 years old?
from what I know from my IFA, Aviva and Zurich also got give term policies that cover till 85 years old. I am not sure what plans since he is reluctant to recommend...

Prudential can cover till 99.
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Old 23-02-2014, 03:01 PM   #43
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actually, I think term insurance can just cover till 85 years old. If I really outlive my insurance policies, then I hope my investment can last me till I die or hope my children will be filial. lol.
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Old 23-02-2014, 03:05 PM   #44
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actually, I think term insurance can just cover till 85 years old. If I really outlive my insurance policies, then I hope my investment can last me till I die or hope my children will be filial. lol.
lol. same sentiments. 65-75 seems risky. I thnk 85 seems safe. 99 abit farfetched and premiums probably alot..
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Old 23-02-2014, 03:06 PM   #45
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lol. same sentiments. 65-75 seems risky. I thnk 85 seems safe. 99 abit farfetched and premiums probably alot..
lol. looks like great minds think alike!
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