Am i getting ripped off from the insurance in my portfolio?

[Epidemik]

Hi all,

So recently i was looking through my portfolio and these are what i have:
(I am currently 28/f, Non smoker and self employed)

1) AIA GEN3 - Whole life insurance
Start date: Jan 2018
Premium end dare: Jan 2043
Premium: $1,517/annum ($126/month)
Sum assured: $30,000

2) AIA Secure Term Plus (ii) 30 - Term Plan
Start date: Jun 2018
Premium end dare: Jun 2093
Premium: $280/annum
Sum assured: $300,000

3) GE Supreme health P Plus - Hospitalisation
Premium: $919/annum

4) AIA Solitaire personal accident
Start date: Jun 2018
Premium end date: Jun 2067
Premium: $359/annum
Sum assured: $250,000
Benefits end date: Jun 2057

5) AIA Glow Life - Women CI
Start date: Jun 2018
Premium end date: Jun 2057
Premium: $213/annum
Sum assured: $25,000
Benefits end date: Jun 2057

6) AIA PWCC - Early CI
Start date: Dec 2019
Premium end date: Dec 2067
Premium: $857/annum ($72/month)
Sum assured: $50,000
Benefits end date: Dec 2067

I am so sorry that this is a quite a long post.. also I might have been naive to signed all these back then because I was convinced by my agent

My questions are

1) Is it normal that my term plan assured sum is WAYYY higher than my whole life assured sum? My WL assured sum is a measly $30,000... is something wrong here?

2) Am i paying too much for my CI and ECI for the amount of assured sum that i am getting?

3) any advice that you guys can give after looking at my portfolio?

4) Should i fire my agent lol

Will really really appreciate all inputs

 

[boredboiboi]

Hi all,

So recently i was looking through my portfolio and these are what i have:
(I am currently 28/f, Non smoker and self employed)

1) AIA GEN3 - Whole life insurance
Start date: Jan 2018
Premium end dare: Jan 2043
Premium: $1,517/annum ($126/month)
Sum assured: $30,000

2) AIA Secure Term Plus (ii) 30 - Term Plan
Start date: Jun 2018
Premium end dare: Jun 2093
Premium: $280/annum
Sum assured: $300,000

3) GE Supreme health P Plus - Hospitalisation
Premium: $919/annum

4) AIA Solitaire personal accident
Start date: Jun 2018
Premium end date: Jun 2067
Premium: $359/annum
Sum assured: $250,000
Benefits end date: Jun 2057

5) AIA Glow Life - Women CI
Start date: Jun 2018
Premium end date: Jun 2057
Premium: $213/annum
Sum assured: $25,000
Benefits end date: Jun 2057

6) AIA PWCC - Early CI
Start date: Dec 2019
Premium end date: Dec 2067
Premium: $857/annum ($72/month)
Sum assured: $50,000
Benefits end date: Dec 2067

I am so sorry that this is a quite a long post.. also I might have been naive to signed all these back then because I was convinced by my agent

My questions are

1) Is it normal that my term plan assured sum is WAYYY higher than my whole life assured sum? My WL assured sum is a measly $30,000... is something wrong here?

2) Am i paying too much for my CI and ECI for the amount of assured sum that i am getting?

3) any advice that you guys can give after looking at my portfolio?

4) Should i fire my agent lol

Will really really appreciate all inputs

With the info, looks like you are paying way too much for term if its pure death/tpd.
But on a side note, aia premium are always on the higher side. Same for the power cc

 

[Conor McGregor]

Why your sum assured for all the plans are so low?

Term is ok at 300k

You should also diversify to 2 insurers at least just in case AIA goes down or if they make it hard for you to claim

 

[Epidemik]

Why your sum assured for all the plans are so low?

Term is ok at 300k

You should also diversify to 2 insurers at least just in case AIA goes down or if they make it hard for you to claim

Hi. but is it weird that i am paying so much more for WL but the assured term is 10 times less than TL? It doesnt seem to add up..

With the info, looks like you are paying way too much for term if its pure death/tpd.
But on a side note, aia premium are always on the higher side. Same for the power cc

Thanks for the info! I am probably looking to cancel my TL since i already have WL.

 

[boredboiboi]

Hi. but is it weird that i am paying so much more for WL but the assured term is 10 times less than TL? It doesnt seem to add up..



Thanks for the info! I am probably looking to cancel my TL since i already have WL.

Maybe you can requote and replace if necessary to save on the overall premium. Which i have done for quite a number of my clients.
If you are pink of health to do that.

Especially aia power cc and the women plan. You can get must better coverage or plan with the premium.

 

[jacky5297]

Yes it’s normal, WL only need to pay 20-25 years while term plan needs to be renewed every year till your last day.

Many promote BTIR - buy term invest the rest. Ie. buy term plan as it is cheap, and invest the premium saved into stock market to earn higher returns.

some believe in WL as you get some cash back after 20-30 years or when you surrender the policy.

Do you have dependent? If you don’t have any then some of the plans are not necessary.

One important guideline - don’t mix investment with insurance, ie. don’t buy any insurance plan marketed as saving/investment plan.

Hi. but is it weird that i am paying so much more for WL but the assured term is 10 times less than TL? It doesnt seem to add up..



Thanks for the info! I am probably looking to cancel my TL since i already have WL.

 

[Prof. Utonium]

Personally would had avoided whole life.

Why is your sum assured so low? Never made any comparison with peers before, but yours is so much difference for the premiums paid.

PA not necessary, although I do have one [Sompo Elite]. As I enjoy traveling alone mostly, in case I got lost in a mountain and fell thus injuring myself. Happened multiple times though never warrant the need to claim. $200k/<$300 pa

Term/CI/ECI [Aviva]
You are paying $1,350 pa or $112.50 pm. Is the coverage for women CI/ECI usually that low?
I am paying $50 more (smoker) till 62 for 1M/300k/100k

HS [AXA Plan A];
<$400 pa (should be more, due to current medical inflation. too lazy to dig out this year premium)

After writing above, I noticed all your plans are from 1 agency. I got myself an IFA, so I would take the best bang for buck.

Do yourself a service and review your portfolio.

 

[SBC]

Bad choice with A coy name.

 

[hwmook]

Hi all,

So recently i was looking through my portfolio and these are what i have:
(I am currently 28/f, Non smoker and self employed)

1) AIA GEN3 - Whole life insurance
Start date: Jan 2018
Premium end dare: Jan 2043
Premium: $1,517/annum ($126/month)
Sum assured: $30,000

2) AIA Secure Term Plus (ii) 30 - Term Plan
Start date: Jun 2018
Premium end dare: Jun 2093
Premium: $280/annum
Sum assured: $300,000

3) GE Supreme health P Plus - Hospitalisation
Premium: $919/annum

4) AIA Solitaire personal accident
Start date: Jun 2018
Premium end date: Jun 2067
Premium: $359/annum
Sum assured: $250,000
Benefits end date: Jun 2057

5) AIA Glow Life - Women CI
Start date: Jun 2018
Premium end date: Jun 2057
Premium: $213/annum
Sum assured: $25,000
Benefits end date: Jun 2057

6) AIA PWCC - Early CI
Start date: Dec 2019
Premium end date: Dec 2067
Premium: $857/annum ($72/month)
Sum assured: $50,000
Benefits end date: Dec 2067

I am so sorry that this is a quite a long post.. also I might have been naive to signed all these back then because I was convinced by my agent

My questions are

1) Is it normal that my term plan assured sum is WAYYY higher than my whole life assured sum? My WL assured sum is a measly $30,000... is something wrong here?

2) Am i paying too much for my CI and ECI for the amount of assured sum that i am getting?

3) any advice that you guys can give after looking at my portfolio?

4) Should i fire my agent lol

Will really really appreciate all inputs

1. It is of course normal. Term plans mean what you pay go straight into paying for protection. A whole life plan mean for what you pay, a small sum of 1-2% goes into protection while the bulk of it goes into the insurance company investment funds so protection for whole life is very low and the money need to go into investment so that you can get your money back at the end of the policy.

2. ECI and CI are very expensive protection plans as the chance of you getting CI is much higher than dying. If you don't need it then don't get it. $50,000 is a small sum for many people who have networth >1M.

3. You must ask yourself what is the purpose you need each plan for. For example, you have a term insurance plan of $300,000. Do you have dependents that need the money if you pass away? If not then you do not need it. The same goes for your CI/ECI plan, do you really need that $25,000/$50,000 in the event of CI, if you got enough money then you can do without paying for coverage that you don't need.

4. I think you should fire your agent since you don't even understand what you are getting.

 

[oceanicmanta]

Hi. but is it weird that i am paying so much more for WL but the assured term is 10 times less than TL? It doesnt seem to add up..

Thanks for the info! I am probably looking to cancel my TL since i already have WL.

hmm, I would not cancel the Term so quickly.

At your age, you can achieve high protection at low cost from Term plans. However, u may not need a Term til 101yo (yours ending 2093 ?!) You need Term when you have dependents. I would say now til 65yo or 70yo ? The longer the protection, the higher the premium.

Is your WL premium sustainable ? You r paying 23yrs (not too long) to be covered for life ? Need to look at the Benefit Illustration to better judge whether this plan is adequate/suitable in terms of protection. What is your reason for getting this WL in the first place ?

It is normal that the WL sum assured is much lower, bcos WL plans have Cash Value whereas Term plans do not.

PA - as self employed, can see why this is relevant. Perhaps look at Sompo PA Star ... always thought their PA is comprehensive & value for money

CI vs ECI - u shld to do more research whether ECI is really needed. It can be expensive. Mayb more pertinent for women, than men.
I find Aviva's MultiPay CI plans quite good, and it covers both in 1 plan.

You need to do more comparison among insurers and agents to find out what's most relevant. To save time. it's probably useful to speak to an independent financial advisor who represents various insurers.

 

[Mecisteus]

Is cash flow an issue for you?

If no, you can just stick to them.

If yes, you definitely can optimise your insurance needs further by cutting some of the plans. Top of the list are the accident and ECI plans.

 

[BBCWatcher]

And somehow even amidst that big pile of insurance policies there’s no Disability Income Insurance.

Is cash flow an issue for you?

If no, you can just stick to them.

Whether cash flow is an issue or not, it still makes sense to get the right coverage with maximum value. (See above.)

 

[TiedInsurer]

And somehow even amidst that big pile of insurance policies there’s no Disability Income Insurance.


Whether cash flow is an issue or not, it still makes sense to get the right coverage with maximum value. (See above.)

Singapore insurance agents don't like to push Disability Income. Probably commission is low for those.

 

[Conor McGregor]

Hi. but is it weird that i am paying so much more for WL but the assured term is 10 times less than TL? It doesnt seem to add up..



Thanks for the info! I am probably looking to cancel my TL since i already have WL.

Yes your WL looks expensive at 126 / month with the coverage you are getting

I suggest you can compare with other insurers

Also suggest for you to bundle WL with CI as a rider

 

[chrisloh65]

I am afraid you are, sorry to say that.

Should just get ride of (4), and change (1) to say 30-years term life and TPD with a lot lower premium!

(5) and (6) coverage too low and yet premium so high? There is no need to cover till Dec 2057 or after. Can change to 30-years term will be much cheaper and become a rider on your new term life insurance.

Your term life coverage should be a X multiples of your annual incomes, but definitely you can increase that from $300k. ("X" is subjective, depends on individuals).

If you not FI and need to work to survive, then you may want to add Disability Income Insurance - don't need a lot, just coverage enough for your monthly expenses.

Becareful and compare the details of coverage between insurers (not cheaper means better)! The devil is in the details!

Hi all,

So recently i was looking through my portfolio and these are what i have:
(I am currently 28/f, Non smoker and self employed)

1) AIA GEN3 - Whole life insurance
Start date: Jan 2018
Premium end dare: Jan 2043
Premium: $1,517/annum ($126/month)
Sum assured: $30,000

2) AIA Secure Term Plus (ii) 30 - Term Plan
Start date: Jun 2018
Premium end dare: Jun 2093
Premium: $280/annum
Sum assured: $300,000

3) GE Supreme health P Plus - Hospitalisation
Premium: $919/annum

4) AIA Solitaire personal accident
Start date: Jun 2018
Premium end date: Jun 2067
Premium: $359/annum
Sum assured: $250,000
Benefits end date: Jun 2057

5) AIA Glow Life - Women CI
Start date: Jun 2018
Premium end date: Jun 2057
Premium: $213/annum
Sum assured: $25,000
Benefits end date: Jun 2057

6) AIA PWCC - Early CI
Start date: Dec 2019
Premium end date: Dec 2067
Premium: $857/annum ($72/month)
Sum assured: $50,000
Benefits end date: Dec 2067

I am so sorry that this is a quite a long post.. also I might have been naive to signed all these back then because I was convinced by my agent

My questions are

1) Is it normal that my term plan assured sum is WAYYY higher than my whole life assured sum? My WL assured sum is a measly $30,000... is something wrong here?

2) Am i paying too much for my CI and ECI for the amount of assured sum that i am getting?

3) any advice that you guys can give after looking at my portfolio?

4) Should i fire my agent lol

Will really really appreciate all inputs

 

[TerryPower]

my hospitalisation plan is from AIA

yearly premium was $900+ cash and I talked to my insurance agent for a lower plan which $500+ cash

maybe you can do that as well

and also, I'm much older than you, so $800+ seems quite expensive for someone much younger



as for the rest, I no comment because i don't have term/whole life/accident/CI/etc.

 

[kumokumo]

All those 5 digit sum payouts can cancel.

 

[exterminazn]

Think your aia gen3 wl policy isn’t not the normal kind

From what I see, it’s more towards giving you a payout every month/year for 3 generations

Hence the sum assured and premium not really in sync with usual life plan

 

[mummynew]

I am having this 'bug' about DDI should be above WL as I place them in the other sequence.

For DDI, one needs to stay employed and if being unemployed for x number of months, then the cover may lapse and if re-employ, one will need to re-apply which by then the health may not be fully insurable while WL covers from day 1 till one lapses the policy on own. Also, I wonder as a self-employed, one has to 'prove' income in the event of claims (this gets a bit complicated to me coz self employed income can fluctauate a lot).

Being a retiree, I am no longer eligible for DDI but still holding on to my WL (broken even) and long term disability insurance (can't really remember the difference btw a DDI and a long term disability insurance).

 

[mummynew]

Think your aia gen3 wl policy isn’t not the normal kind

From what I see, it’s more towards giving you a payout every month/year for 3 generations

Hence the sum assured and premium not really in sync with usual life plan

Gen 3 cover maybe good if one has dependent/s and also have real extra cash to buy 'luxury' cover. Purpose seems not to be for protection but more on legacy.