Advice on Insurance

[SallyA.]

sorry ended in wrong thread, im not sure how to delete it

Female, 22, non-smoker

Hi guys, any advices for such plans?

I was advised by my parents agents on these products

Prulink protection plus account SA: $100K
-total & permanent disability SA:$100K
-crisis provider iii SA:$50K
-early crisis cover provider, crisis waiver iii SA:50K
yearly premium of 1.9k

along with..

Prulife multiplier 15yr sa: $40k
-early crisis cover multiplier SA: $40k
yearly premium $1.6

NTUC agent recommend this
VivoCare 100 (EVRQ)
-policy term: Whole Life, SA $100K
VivoCare 100 - Protection Benefit (EVV1)
-policy term: Up to age 65. SA $200K
VivoCare 100 - Dread Disease (EVV2)
-policy term: Whole Life, SA $100K

Do not want to end up buying wrong policy..

 

[demid]

No idea about specific insurances. But buy term and invest the rest. Minimum hosp plan, term life with tpd, personal accident. Can consider lady disease plans and/ or own occupation disability income if have more spare cash.

Dont get investment link plans.

 

[demid]

The above reccomendations is best for people who are willing to put in effort to do their own investing.

 

[sashti90]

Hi Sally, I would advise someone at your age to think about whether you even need insurance in the first place. What are your circumstances? Do you have dependents now? If you have no one relying on you financially, you do not need all the insurance plans recommended.

Except for the basic integrated hospitalization plan which you can use your medisave to upgrade coverage. Plus, a TPD and disability income to cover any expenses and loss of income attributable to permanent disability. Also a critical illness plan would be good too. I could get you all these for $100/month.

Regard
Sashti

sorry ended in wrong thread, im not sure how to delete it

Female, 22, non-smoker

Hi guys, any advices for such plans?

I was advised by my parents agents on these products

Prulink protection plus account SA: $100K
-total & permanent disability SA:$100K
-crisis provider iii SA:$50K
-early crisis cover provider, crisis waiver iii SA:50K
yearly premium of 1.9k

along with..

Prulife multiplier 15yr sa: $40k
-early crisis cover multiplier SA: $40k
yearly premium $1.6

NTUC agent recommend this
VivoCare 100 (EVRQ)
-policy term: Whole Life, SA $100K
VivoCare 100 - Protection Benefit (EVV1)
-policy term: Up to age 65. SA $200K
VivoCare 100 - Dread Disease (EVV2)
-policy term: Whole Life, SA $100K

Do not want to end up buying wrong policy..

 

[Shiny Things]

You're being given bad advice. All the stuff you've been offered there is "whole-life" and "investment-linked" policies - that is, you pay huge amounts of money in return for getting paid out when you die, or (for investment-linked policies) getting paid out depending on how stockmarkets have done.

Here's the thing, though: you're 22. It's way too early to start thinking about when you die - you need to think about yourself right now, and when you retire. And that $2000 a month you'll be pumping into these policies is money that you're never going to see again; the reason you're being offered these policies is because they make tens of thousands of dollars for the agents, not because they're the best thing for you. Your parent's agent is giving you terrible advice.

And investment-linked insurance is a terrible idea. All it is is exactly the same unit trusts you can get anywhere else, but with gigantic fees - two or three or four times what you'd pay elsewhere - and a thin veil of insurance so that you don't realise you're being ripped off.

Here's what you need:

• A hospitalisation shield plan.
• That's it.

Sashti is right: if you don't have any people depending on you (and your parents don't count unless they're both disabled and can't work), you don't need any life insurance. Life insurance is supposed to pay for your dependents to get back on their feet for a few years if you get hit by a bus; if you don't have dependents, you don't need life insurance.

You do need a hospital shield plan, because even though hospitalisation in Singapore is relatively cheap by world standards (try getting sick in the USA sometime), it's still expensive enough that it'd hurt if it happens.

Forget $2,000 a month. That's money that belongs in your pocket, not the insurance agent's. You should be able to get the coverage you need for less than $200 a month.

 

[pcmdan]

I think what you need first and foremost is

1. A hospitalization plan

If you have excess budget

2. Get a whole life with limited term plan next. It is always more beneficiary to get it younger since it increases with age.

or

3. A term plan that is cheap if you really need protection

Shiny, I respect your post, but I beg to differ that Life policy is for someone with dependents. No wrong with that statement but in future when she has a dependent den she buy wouldnt it be too expensive by then?

 

[cLip6z]

Is a paradox to say no need life insurance without a dependant. If anything happen to the person, who is going to take care of them?

Sent from Oneplus using GAGT

 

[01asdf]

Is a paradox to say no need life insurance without a dependant. If anything happen to the person, who is going to take care of them?

Sent from Oneplus using GAGT

I don't think you understand the definition of "paradox".

If you have no dependants there is nobody that needs to be taken care of if something happens to the person.

 

[RetRace]

Buy term invest the rest. Don't think you have dependents at age 22. Yet. Unless your parents depend on your earnings

Sent from Samsung SM-G900F using GAGT

 

[qhong61]

Buy term invest the rest. Don't think you have dependents at age 22. Yet. Unless your parents depend on your earnings

Sent from Samsung SM-G900F using GAGT

Our parents are also our dependents. Unless u are the selfish kind who only think of yourself.

 

[Ilovemathstutor]

You're being given bad advice. All the stuff you've been offered there is "whole-life" and "investment-linked" policies - that is, you pay huge amounts of money in return for getting paid out when you die, or (for investment-linked policies) getting paid out depending on how stockmarkets have done.

Here's the thing, though: you're 22. It's way too early to start thinking about when you die - you need to think about yourself right now, and when you retire. And that $2000 a month you'll be pumping into these policies is money that you're never going to see again; the reason you're being offered these policies is because they make tens of thousands of dollars for the agents, not because they're the best thing for you. Your parent's agent is giving you terrible advice.

And investment-linked insurance is a terrible idea. All it is is exactly the same unit trusts you can get anywhere else, but with gigantic fees - two or three or four times what you'd pay elsewhere - and a thin veil of insurance so that you don't realise you're being ripped off.

Here's what you need:

• A hospitalisation shield plan.
• That's it.

Sashti is right: if you don't have any people depending on you (and your parents don't count unless they're both disabled and can't work), you don't need any life insurance. Life insurance is supposed to pay for your dependents to get back on their feet for a few years if you get hit by a bus; if you don't have dependents, you don't need life insurance.

You do need a hospital shield plan, because even though hospitalisation in Singapore is relatively cheap by world standards (try getting sick in the USA sometime), it's still expensive enough that it'd hurt if it happens.

Forget $2,000 a month. That's money that belongs in your pocket, not the insurance agent's. You should be able to get the coverage you need for less than $200 a month.

If we examine Shiny's recommendation, one would see that his recommendation is correct and coupled with the best outcome.

It's always better to start one's investing journey early, Shiny's recommendation of 110-one's age for the stock : bonds ETF would provide better returns than a lock-down period from life insurance plans & so far, ILPs die a premature death, as they always get wind down after a couple of years due to the change in market sentiments & thinning consumers.

 

[01asdf]

Our parents are also our dependents. Unless u are the selfish kind who only think of yourself.

Only if you assume the parents to be those 'traditional' asian parents who consider their children to be their retirement 'investment'.

 

[Takagi]

Shield plan plus either term or whole life with limited payment term

Quite foolproof