3PA vs Prulife Multiplier

[greniph]

Hi guys,

I am 27, and not very finance savvy.

I have 3PA for 2 years and now my insurance agent from Prudential got me to sign Multiplier and says its more logical to get Life insurance rather than 3PA(ILP).

As of now, I want to get insured but do not want to tie myself down with so many insurance.

Any advice can you guys provide, in terms of whether do i need Life or ILP at this point in life?

I have signed the documents, but I will not pay until I deem it suitable for me.

 

[sashti90]

For a whole life plan, AXA's life exentials prime won the most comprehensive whole life plan award last year...

But first EDUCATE yourself on insurance.

1) Do need insurance? DO you have dependents relying on you financially? Do you have liabilities that will fall upon your family members if you pass on?

2) What kind of coverage you need? Death? Disability? Critical Illness? Accident (occupation, ride or drive)? hospitalisation?

3) How much coverage you need?

4) ILP vs Whole Life plan vs term? What is suitable for you? Investment knowledge, experience, risk appetite all these play a role.

Find out these or at least meet a couple of experienced financial advisers before you sign anything.

Hi guys,

I am 27, and not very finance savvy.

I have 3PA for 2 years and now my insurance agent from Prudential got me to sign Multiplier and says its more logical to get Life insurance rather than 3PA(ILP).

As of now, I want to get insured but do not want to tie myself down with so many insurance.

Any advice can you guys provide, in terms of whether do i need Life or ILP at this point in life?

I have signed the documents, but I will not pay until I deem it suitable for me.

 

[Shion]

What you need is probably a term insurance

 

[soneat]

Hi guys,

I am 27, and not very finance savvy.

I have 3PA for 2 years and now my insurance agent from Prudential got me to sign Multiplier and says its more logical to get Life insurance rather than 3PA(ILP).

As of now, I want to get insured but do not want to tie myself down with so many insurance.

Any advice can you guys provide, in terms of whether do i need Life or ILP at this point in life?

I have signed the documents, but I will not pay until I deem it suitable for me.

If you have not considered it as suitable,you should not sign it at all. Anyway,since you have not paid anything,policy will not be incepted till you pay. First of all,you must be very clear which events you want to be insured,for how long and how much.

 

[oceanicmanta]

Looking back, if I were 27 & under circumstances then, my priorities & thoughts wld have been :

1) Term (ie Death)
- I just started work, not much savings
- if something happens to me, I want my parents to have something. And in future, when I get married, it will be for my family
- bcos it's cheaper to enter early for a decent coverage. premiums dont increase
- I wont get the premiums
- as I age & obtain financial independence, may not need it anymore

2) Critical Illness
- no family history of illness but an event would be financially taxing
- just started work, not much savings

3) Hospitalisation
- my company provides medical insurance but not sure how much it covers
- I took up ISP bcos I wanted to be treated at Private Hospital in case of Critical Illness
- however, as I age, I think I wld have to downgrade the ISP due to cost

4) Savings
- I dont know how to invest then so ILP / Savings plan did seem attractive
- my advice is it is not difficult to learn how to invest & grow your savings yourself
- fees paid out for ILP/Savings plans are high & these products need regular review & assessment
- these plans are complex & long term.
- The conflict of interest issue cannot be ignored

I dint find Disability necessary bcos the definition then was quite restrictive. Honestly, I wld rather die.

I dint find Accident plan necessary bcos company provides for it & my work is office bound.

Alas, the above is with hindsight. I am a saver & bcos of naivety & ignorance then, wanted savings products so bought ILP & Savings Plans which I am still servicing.

 

[bigmice]

Life insurance is must.
before you sign the policy, make sure you have Hospitalization policy (shield plan)
then you should think
1. your budget
2. your dependent need how many years and money if something bad happen to you
meet more agent, to hear what they are saying .the decide what your need.

 

[pcmdan]

if I am 27...i would do what i have done even now

First priority, Hospitalization (do not ever rely on your job insurance as cover)

2nd priority, Limited whole life term insurance (u pay for a limited no. of years, covers till u die)

3rd priority, term life insurace those where it is small outflow big sum assured

rationale: 1st priority

when u are young, u have no pre existing condition, hence insurance will cover u everything without exclusion.

If you rely on your job one, one will regret as any condition developed during ur career is covered, but once u quit, your coverage stop. By then you wont be able to buy any without exclusion

2nd priority

you are young, these products premium are fixed on the age u buy at. The younger u buy the lower your outflow in all

3rd priority

normally u buy when u need to ensure if u move on, ur dependent will still have the money as though u are still around working

(though if u have no dependent not that worth to have though)

 

[greniph]

Thanks all for the information! It is truly amazing guidance.

1) I do have hospitalisation, 100% coverage even at private hospitals. So no worries on this.

2) I was thinking to invest myself in different categories, from stocks to real estate (this one slowly over time) that is why i did think of letting ILP go considering the handling fees.

3) I want to cover myself in terms of CI rather than death. For coverage of death, it will be a smaller sum as of right now, I do not have any dependents. But my mother will be of retiring age very soon, therefore its better to have some lump sum for her to tide herself in case i were to pass on.

And also, in Singapore, its better to die rather than fall sick isn't it?

4) I got high BP since 21 but was not on record until this year. sian half.

5) Actually, is this Multiplier considered term? I can stop paying at the 25 year mark.

 

[anfielder]

5) Actually, is this Multiplier considered term? I can stop paying at the 25 year mark.

No, it's a whole life plan. You basically pay more upfront so that you can stop paying after a number of years.