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Old 18-01-2017, 02:02 PM   #46
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WL has a guaranteed surrender amount and a non-guaranteed surrender amount. This option is available though I prefer to see it as mainly protection. There can be WL that do not have such but the ones I have seen so far have this 2 components.

Assuming just a WL 50k coverage at age 28, and cash value diminishes over time, it is still a guaranteed form of protection (taking pre-ex conditions, insurer does not collapse etc out of the picture).

This will still help in terms of TPD/CI in the later part of your life and lessen the financial burden in some ways regardless of the emergency find you should have set aside.

Having said that, this depends on age as well because at certain age you will be better off just getting a term insurance and self insure since the WL premium is going to be quite high.

I'm lost already. Or are you lost?

"Agree with the cash value part too as it is an guaranteed option for the client as well."
Not sure what are you referring to...


"But because investment risk is still there in cases of a market crash, I still prefer some guaranteed form of protection instead of having to sell off investments should the timing be off in those times of need. "
Protection to me is ment only as a protection. It is not meant to be terminated for the whatever cash value (although you can) should financial crisis arise. There is a reason for emergency cash to be kept in the bank or somewhere liquid.
Protection is only for the big crisis should you loose your income due to TPD/CI or your life. The Sum Assured payout is meant to last longer than 6 months, or even years.
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Last edited by dendii; 18-01-2017 at 02:12 PM..
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Old 18-01-2017, 06:27 PM   #47
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Okay! i will go and look through the plans available in the market.
Btw, say at a age of late 20s, what do you think the average premium monthly for such plans?
Types of plans available within the insurance industry includes:

Protection:
- Term life (inclusive of Death/TPD/CI)
- Whole life (inclusive of Death/TPD/CI)
- Hospitalisation
- Personal Accident
- Early Stage Critical Illness
- Disability Income Benefit
- ILP (investment plus Death/TPD/CI)

Savings:
- Fixed tenure with fleexibility of withdrawal
- Fixed tenure Without flexibility of withdrawal
- Annuity
- Limited pay savings plan
- Saving committed till end of tenure plan

Investment:
- ILP Front-end loaded (inclusive of Death/TPD/CI)
- ILP Back-end loaded (inclusive of Death/TPD/CI)
- Single premium investment with Cash or CPF

You may want to widen your search instead of just limiting to Term and Whole life alone, for instance, Hospitalisation Plan AKA Shield plans.

Average monthly premium really depends on the coverage chosen and type of plan/instrument you select.

For a rough gauge, $150/mth Term plan for $500k coverage on death plus accelerated TPD and CI benefit, or $200 - $300/ mth for WL covering $150k for death/TPD/CI with multiplier factor before age 65 or age 70.

Having listed the products available within the insurance industry, you should also understand that there are other savings options available such as govt. bonds, savings acc w/ promotional rates, CPF etc. Likewise for investments.

Note that these are really just rough ideas, you should read up more on your own and perhaps sit down with a trusted, professional financial adviser to discuss about how you can better plan out your finances.
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Old 18-01-2017, 06:41 PM   #48
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you are definitely not the only person. There are so many companies with so many products.
First and foremost, find out what are the types of products available first, then narrow down to which company packages it better in terms or cost and coverage. That will make life easier.

Company A to Z have almost every type of pdts available. Difference is only how much each of them charge and what gimmicks they put in.
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Old 18-01-2017, 06:54 PM   #49
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WL has a guaranteed surrender amount and a non-guaranteed surrender amount. This option is available though I prefer to see it as mainly protection. There can be WL that do not have such but the ones I have seen so far have this 2 components
I guess for WL that do not have any cash value IS a term life to age 99/100?
Neither have I came across any of such WL plans yet.

Assuming just a WL 50k coverage at age 28, and cash value diminishes over time, it is still a guaranteed form of protection (taking pre-ex conditions, insurer does not collapse etc out of the picture).
I have a feeling you are rather confused and contradicting. If you are talking about protection, why is cash value a concern?
Term life still beats WL as a guaranteed form of protection considering no exclusions and insurer does not default. Doesn't it?

This will still help in terms of TPD/CI in the later part of your life and lessen the financial burden in some ways regardless of the emergency find you should have set aside.
Doesn't Term Life solve the same problem?

Having said that, this depends on age as well because at certain age you will be better off just getting a term insurance and self insure since the WL premium is going to be quite high.
Regardless the age, WL premium will always be higher than Term Life for the same amount of coverage.



I still have absolutely no idea what else are you driving at...
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Old 18-01-2017, 10:43 PM   #50
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First and foremost, find out what are the types of products available first, then narrow down to which company packages it better in terms or cost and coverage. That will make life easier.

Company A to Z have almost every type of pdts available. Difference is only how much each of them charge and what gimmicks they put in.
Thanks for the advise!
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Old 19-01-2017, 11:05 AM   #51
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Ermms I have been emphasizing on WL as a form of guaranteed protection no matter which part of your life you are at. You brought in the cash value portion because you disagreed on this protection part and it is true that this option is available if needed.

You get a term life to enhance your protection to the amount you need, but have a WL in place as well so that when the term ends you still have guaranteed protection of certain amount.

Sure one can say I can put into investment, set aside funds. and self insure. But I would like to think that a guaranteed payout even in the later stage of your life will help you lessen your financial burden.

Main point I am driving at is to consider the hybrid of WL + term planning for certain age group. It is not a one size fits all planning.

Hope this is clear enough.

*I am referring to a limited pay WL with CI here maybe this is where we are confusing each other?

I guess for WL that do not have any cash value IS a term life to age 99/100?
Neither have I came across any of such WL plans yet.



I have a feeling you are rather confused and contradicting. If you are talking about protection, why is cash value a concern?
Term life still beats WL as a guaranteed form of protection considering no exclusions and insurer does not default. Doesn't it?



Doesn't Term Life solve the same problem?



Regardless the age, WL premium will always be higher than Term Life for the same amount of coverage.



I still have absolutely no idea what else are you driving at...
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Last edited by dendii; 19-01-2017 at 11:42 AM..
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Old 19-01-2017, 11:15 AM   #52
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Ermms I have been emphasizing on WL as a form of guaranteed protection no matter which part of your life you are at. You brought in the cash value portion because you disagreed on this protection part, which is true because it is an option that is available as well.

You get a term life to enhance your protection to the amount you need, but have a WL in place as well so that when the term ends you still have guaranteed protection of certain amount.

Main point I am driving at is to consider the hybrid of WL + term planning for certain age group, and not for everyone. It is not a one size fits all planning.

Hope this is clear enough.
after term ends, if solely depending on the WL for guaranteed protection, wont the protection figure be very low?
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Old 19-01-2017, 11:45 AM   #53
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It will be lower but still something in case your investments is not doing that well due to whatever reasons.

after term ends, if solely depending on the WL for guaranteed protection, wont the protection figure be very low?
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Old 19-01-2017, 12:31 PM   #54
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It will be lower but still something in case your investments is not doing that well due to whatever reasons.
by the time term ends, the investments shld be in something safer like bonds, fd, cpf etc?

perhaps a larger allocation than other riskier instruments?
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Old 19-01-2017, 04:40 PM   #55
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Ermms I have been emphasizing on WL as a form of guaranteed protection no matter which part of your life you are at. You brought in the cash value portion because you disagreed on this protection part and it is true that this option is available if needed.

You get a term life to enhance your protection to the amount you need, but have a WL in place as well so that when the term ends you still have guaranteed protection of certain amount.

Sure one can say I can put into investment, set aside funds. and self insure. But I would like to think that a guaranteed payout even in the later stage of your life will help you lessen your financial burden.

Main point I am driving at is to consider the hybrid of WL + term planning for certain age group. It is not a one size fits all planning.

Hope this is clear enough.

*I am referring to a limited pay WL with CI here maybe this is where we are confusing each other?
I really don't know what's confusing us...

ok, let's just say someone bought a limited-pay WL at age 25 with say 2.5x multiplier till age 70, basic coverage of $75k before multiplier, at $200/mth premium limited pay for 15 years.

IF, he kena TPD at age 50, we would get $187,500, which has a rough value of $100k today if we factor in 2.5% inflation rate over 25 years. Assuming he has another 20 years of lifespan, average we would have $5k (factored in inflation) per year to use. This kind of coverage is pretty negligible.

He would have paid $36k premiums for a $187.5k payout when on the other hand, he could have paid $27k premiums for a $200k payout using a 15 year limited-pay Term policy.
Having said that, I'm still not a limited-pay person.

On the other hand, if Life assure kena TPD at age 73, he would only get sum assured of $75k + whatever cash value accumulated, let's say it totals up to $125k, over 50 years of inflation, that amount is equivalent to about $40k today's value. Still, a Term Life would have a higher payout of $200k.

If life assured kena CI (TPD coverage have expired) on the other hand at age 83 and assuming his WL is still inforce, yes, he will receive payout while Term life has expired. With inflation factored in is worth about $28k, lets say he could live another 5 more years, he would have apprx. $500 (today's value) per month, which is still rather insignificant for managing any risk since his dependent's might have to quit their job or hire a caretaker to take care of him with the potential of loosing $1.5k or more for such cost.

Whole life only makes sense if Life Assured strongly thinks that his chance of getting into unfortunate events apart from death is very low, he banks on having the cash value returned to him for retirement if nothing happens to him, and also, he must have a good amount of budget to split between Term Life + Whole Life.

In terms of the savings portion for such case, Term + WL would have a better cash value accumulated instead of Term + Endowment.

Your point of guaranteed protection regardless which part of life the assured is at, is certainly valid. Just that the guaranteed protection value in the later stage is pretty much negligible and it shouldn't be focused too much on.

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Old 19-01-2017, 05:38 PM   #56
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Direct insurance purchase

Would you guys recommending buying life insurance online? The price is cheaper than buying through agents. But is there like a downside to it??
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Old 19-01-2017, 06:11 PM   #57
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Would you guys recommending buying life insurance online? The price is cheaper than buying through agents. But is there like a downside to it??
Yes and no.

1stly, depending on your financial savvyness, you might need an adviser to advice you along the way of financial planning as it's a life-long process. However, if you consider yourself financially savvy and is able to do your own investments, not solely relying on bank interest, then you most probably do not need an adviser.

2ndly, Direct-Life insurance has got certain limitations too such as maximum coverage age and coverage amount. If you need higher coverage than the limit, it will not suit you.

3rdly, if you want to make any claims, this process has to be handled on your own since you do not have an adviser to liaise with the insurance company. It can be a tedious process.

Lastly, the premiums are only slightly cheaper than getting from agents, so u really need to weigh the pros and cons.
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Old 05-02-2017, 05:55 PM   #58
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Hi, any comment on OCBC MaxLife Protector 2?
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Old 07-02-2017, 12:09 AM   #59
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Would you guys recommending buying life insurance online? The price is cheaper than buying through agents. But is there like a downside to it??
Tell u few tips

1.buying online not necessarily give you a cheaper price, sometimes buying from the people you know might give u better offer

2.a good agent really make things differently, even it is a same product, so choose an agent wisely!

Last edited by dongo88; 07-02-2017 at 12:33 AM..
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Old 07-02-2017, 12:31 AM   #60
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Hmm abit suspicious. Hope moderator can do something about it? Looks like self advertising.. :x

Tell u few tips

1.buying online not necessarily give you a cheaper price, sometimes buying from the people you know might give u better offer

2.a good agent really make things differently, even it is a same product, so choose an agent wisely!

Btw, my agent is quite good, if you want u may contact him and check it out, no harm to compare and know more right? Haha, Mr Ngo 94379983
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