Advice on Insurance

[shadowsworn]

Advice on Insurance and Investment

I am 32 year old male, currently am holding a PruLife Multipler Flex 65 3X with Crisis Multiplier Flex.

Below are the details of the insurance
Paying ~209/month or ~2510/year
Sum assured 84K x 3 = 252K until 65 after which it drops to 84K
Will have paid for 3 years (~7.7K) by next month, with 22 more to go.
I think if I surrender soon, I will get about ~1.2K back.

Based on the Policy Surrender Value, will only get back breakeven by age 80 (assuming 0% investment return). If assume 3.5%, it will be age 70. If assume 4.5%, it will be age 60.

I’m wondering if I should surrender it and buy a DPI Term 100K (~413/yr with CI and ~157/yr without) and SAF Group Term for 250K (~$123/yr) and invest the rest. The premiums for DPI Term I got from Comparefirst.sg and its slightly higher cus I’m a smoker.

Will I be able to cover the ~6.5K loss that I made on the premiums? Or should I just bite the bullet and continue the Multipler Flex.

Additional Info to help assessment:
I also have PruShield Premier and PruExtra A Premier. Bought this a while back, technically do not need to pay anything if I go hospital.
Might get a PA plan as well, to claim my TCM visits which usually amount to more than the PA plan costs which is ~$100 a year

In terms of investment, I plan to DCA about 1.3K a month into either SWRD or VHVE. Any idea which ETF I should choose?
Will switch to a Distributing Version closer to retirement I would think.

 

[boredboiboi]

I am 32 year old male, currently am holding a PruLife Multipler Flex 65 3X with Crisis Multiplier Flex.

Below are the details of the insurance
Paying ~209/month or ~2510/year
Sum assured 84K x 3 = 252K until 65 after which it drops to 84K
Will have paid for 3 years (~7.7K) by next month, with 22 more to go.
I think if I surrender soon, I will get about ~1.2K back.

Based on the Policy Surrender Value, will only get back breakeven by age 80 (assuming 0% investment return). If assume 3.5%, it will be age 70. If assume 4.5%, it will be age 60.

I’m wondering if I should surrender it and buy a DPI Term 100K (~413/yr with CI and ~157/yr without) and SAF Group Term for 250K (~$123/yr) and invest the rest. The premiums for DPI Term I got from Comparefirst.sg and its slightly higher cus I’m a smoker.

Will I be able to cover the ~6.5K loss that I made on the premiums? Or should I just bite the bullet and continue the Multipler Flex.

Additional Info to help assessment:
I also have PruShield Premier and PruExtra A Premier. Bought this a while back, technically do not need to pay anything if I go hospital.
Might get a PA plan as well, to claim my TCM visits which usually amount to more than the PA plan costs which is ~$100 a year

In terms of investment, I plan to DCA about 1.3K a month into either SWRD or VHVE. Any idea which ETF I should choose?
Will switch to a Distributing Version closer to retirement I would think.

How much will you be paying in total for the similar coverage if you will to change to term?
Bite the bullet if difference not huge. And still invest the rest of the 1.3k difference

 

[fcangel]

Hey I'm from AXA and I would love to help answer people's question about insurance plan based on your needs. Not to worry about any obligations, just here to talk and help Do message me know to discuss more. Cheers!

 

[AhBui168]

I am 32 year old male, currently am holding a PruLife Multipler Flex 65 3X with Crisis Multiplier Flex.

Below are the details of the insurance
Paying ~209/month or ~2510/year
Sum assured 84K x 3 = 252K until 65 after which it drops to 84K
Will have paid for 3 years (~7.7K) by next month, with 22 more to go.
I think if I surrender soon, I will get about ~1.2K back.

Based on the Policy Surrender Value, will only get back breakeven by age 80 (assuming 0% investment return). If assume 3.5%, it will be age 70. If assume 4.5%, it will be age 60.

I’m wondering if I should surrender it and buy a DPI Term 100K (~413/yr with CI and ~157/yr without) and SAF Group Term for 250K (~$123/yr) and invest the rest. The premiums for DPI Term I got from Comparefirst.sg and its slightly higher cus I’m a smoker.

Will I be able to cover the ~6.5K loss that I made on the premiums? Or should I just bite the bullet and continue the Multipler Flex.

Additional Info to help assessment:
I also have PruShield Premier and PruExtra A Premier. Bought this a while back, technically do not need to pay anything if I go hospital.
Might get a PA plan as well, to claim my TCM visits which usually amount to more than the PA plan costs which is ~$100 a year

In terms of investment, I plan to DCA about 1.3K a month into either SWRD or VHVE. Any idea which ETF I should choose?
Will switch to a Distributing Version closer to retirement I would think.

TS Bro, I also have same plan as you.
Any experts able to advice me on my plan ?

PruLife Multipler Flex 70 4X + Early CI Rider
Sum assured 50K - Before 70 years old = 200K
1 month premium cost $192 for 25 Years

PruShield Premier and PruExtra A Premier
1 month premium cost $46 + another payment deduct from CPF

PRUPersonal Accident + Recovery Aid + Fractures Care
Sum Assured 200K
Yearly premium cost $660

PruWealth (SGD) - Cancelled on the 1st month of sign up.
Because it's a kind of investment plan. I don't dare to take the risk.
1 month saving premium cost $300+ for 25 Years

 

[boredboiboi]

TS Bro, I also have same plan as you.
Any experts able to advice me on my plan ?

PruLife Multipler Flex 70 4X + Early CI Rider
Sum assured 50K - Before 70 years old = 200K
1 month premium cost $192 for 25 Years

PruShield Premier and PruExtra A Premier
1 month premium cost $46 + another payment deduct from CPF

PRUPersonal Accident + Recovery Aid + Fractures Care
Sum Assured 200K
Yearly premium cost $660

PruWealth (SGD) - Cancelled on the 1st month of sign up.
Because it's a kind of investment plan. I don't dare to take the risk.
1 month saving premium cost $300+ for 25 Years

All your plan is from pru. What do u wish to know on your plans? Why dont ask from your agent since u get all from pru?

 

[BBCWatcher]

Also, Prudential doesn’t offer Disability Income Insurance, which is why you’re missing what is probably the most important insurance protection.

By the way, PruExtra Premier A (a legacy “zero dollar” rider, which never really made any sense) is subject to “claims-based pricing,” meaning that if you file a claim the rider premium can increase. Some (many) people don’t like that, so they switch to the lower cost rider that doesn’t have claims-based pricing.

 

[AhBui168]

All agents are the same.
They confirm side the company. No point asking them.
Once they get your deal, they won't even bother much.

All your plan is from pru. What do u wish to know on your plans? Why dont ask from your agent since u get all from pru?

 

[boredboiboi]

All agents are the same.
They confirm side the company. No point asking them.
Once they get your deal, they won't even bother much.

You are ask what is the plan ma, nothing to so with siding company.
Or what you actually wanted to ask?

 

[AhBui168]

Oh ya.
Thanks for your notification.

I need to check again on my accident plan, does it include any disability income.

Also, Prudential doesn’t offer Disability Income Insurance, which is why you’re missing what is probably the most important insurance protection.

By the way, PruExtra Premier A (a legacy “zero dollar” rider, which never really made any sense) is subject to “claims-based pricing,” meaning that if you file a claim the rider premium can increase. Some (many) people don’t like that, so they switch to the lower cost rider that doesn’t have claims-based pricing.

 

[AhBui168]

All the insurance that I bought is it worth it ?

You are ask what is the plan ma, nothing to so with siding company.
Or what you actually wanted to ask?

 

[boredboiboi]

All the insurance that I bought is it worth it ?

I mean your question is very general. I dont know how to answer you whether is worth it or not. It can be good at the time you bought n not now. Then how? Plans changes over time.

 

[moejoseph]

All the insurance that I bought is it worth it ?

To be honest, all plans are "not worth it" as time passes, because insurers always come up with new and better products, and premiums are getting more competitive.

I have an whole life plan bought 7 years ago where premium is still high. I am paying ~$6k/year for this plan, but if i am to get it now with the same sum of coverage, it is going to be cheaper. Same for term plan as well.

To me it is still worth it because it provides me coverage during these 7 years. If i am to keep procrastinating, i may not have gotten any coverage by now,and if something happens i would have regretted.

Yes you can possibly save money if u get a new plan,but other cause of concerns will be the waiting periods, cash value etc.. Depending on which plan you are switching to. As it is also sum of premium already paid vs additional years to pay for when u get a new plan. Usually term plan will be more cost-efficient to switch (if there are some savings, or when you want to upgrade coverage), but must also take note of the waiting period as mentioned above.

For plans with cash value, those who are ok with "losing" their premiums paid and can save much more if they get a new plan with same coverage, then it is better to switch. Need to still do some calculation like the years paid vs additional years to pay as well though. But anyway, ur agents/insurers will be more happy when u terminate your old plan and get a new one, because they earn the most commission during the first 3 years on average.

 

[BBCWatcher]

I need to check again on my accident plan, does it include any disability income.

No. PA policies are not DII policies. Unfortunately Prudential doesn't sell any DII policies in Singapore. (In alphabetical order) AIA, Aviva, and Great Eastern sell DII policies in Singapore.