Am I over insured?

[lifeishard]

i do not agree that insurance is an expense,i see it as a form of saving. But i do agree with lzy on needing to strike a balance on insuring for possible future risk and having a comfortable present life.

 

[Dividends Warrior]

i do not agree that insurance is an expense,i see it as a form of saving. But i do agree with lzy on needing to strike a balance on insuring for possible future risk and having a comfortable present life.

Life is hard......

 

[hwmook]

i do not agree that insurance is an expense,i see it as a form of saving. But i do agree with lzy on needing to strike a balance on insuring for possible future risk and having a comfortable present life.

Insurance is not a form of saving, its a form of hedge or expense that you use to cover your arse in case something happens. The fact that you think of insurance as saving just show how successful the insurance companies have been.

 

[workworkwork]

What if you look at insurance and mortgage as a form of investment. Payout of more than 2% consistently....

 

[ngsngn]

Hi All,

After some thinking, I am thinking of doing the following below if there are no penalty to be paid:

1) Surrender my Whole Life plan if the riders (AccidentCare II, LifeSecure) cannot be seperate as standalone plan.

2) Increase my Supreme Living Term / Aviva to 200k. Which one to increase better, Aviva or GE? Get Paysecure / Life Secure / AccidentCare II in order of priority with Paysecure being the highest priority after reading Part 4 of the newbie insurance guide.

EDIT: After looking at SAF Living Care (CI) for 100k coverage of $10 per month til age 45. Looks like quite worth it also. Advisable to take?

Would appreciate your advice on the above.

Thanks.

 

[ngsngn]

Hi All,

Talk to my GE agent last night for about 20mins.

she keep advising me not to drop my whole life plan, some more want to recommend me early CI plan.

She say return of policy she no commission like that.. not sure she mean it anot, since I already paid for 1yr of premiums.

Say my GE plan got the multiplier effect, 20years later can become from 100k to 200k <--- true anot

Then I query about the early CI, she say approximately 700-800 per year for my age.

She told me I can reduce the sum assured, let say from 100k to 50k, but the drop would not be half. Therefore if my increase my Living Term from 100k to 200k would not be double as well. Also she has mention see can if hold at least 2-3yrs anot, then from there re assess the plan again, as I told her in beginning I foresee I may have some financial constraint in next few years.

Since I am still deliberating, I told her I would think about it again.

 

[lifeishard]

the reason y she wants u to try holding out 2-3 yrs is becoz her bulk of comms from selling you that policy ends then. Instead of helping u looking for ways to cut your insurance expenditure,she intro more policies?

by the way,why drop your whole life when you going to lose alot unless you want to do incestment on your own? did you check if you can claim CI rider of your whole life after 20yrs?

Drop her la,dun be mesmerised by her looks lolz...

 

[ngsngn]

Drop her la,dun be mesmerised by her looks lolz...

Sigh, she old auntie le leh... her son already serving in the army...

 

[lifeishard]

must be relative liao lor

 

[lzydata]

She told me I can reduce the sum assured, let say from 100k to 50k, but the drop would not be half. Therefore if my increase my Living Term from 100k to 200k would not be double as well. Also she has mention see can if hold at least 2-3yrs anot, then from there re assess the plan again, as I told her in beginning I foresee I may have some financial constraint in next few years.

This is the key point in my opinion. You can cut around $1,000 of premiums a year by halving the sum assured of the whole life policy. There is no other way to get that much savings unless you surrender most of the other policies. You still get the benefit of the whole life policy, lifetime coverage, bonuses etc., just that it will be less. Even your agent will probably still be entitled to some commission. Win-win

 

[ngsngn]

by the way,why drop your whole life when you going to lose alot unless you want to do incestment on your own? did you check if you can claim CI rider of your whole life after 20yrs?

Oh ya, she mention the Supreme Protect and the PLUS (rider) is tied together, cannot don't drop rider only, if I heard correctly.
Therefore I think should be able to claim?

Anyway, want to ask if I don't plan to invest much or maybe just keep it in Fix Deposit, is it better to just take Whole life?

 

[ngsngn]

must be relative liao lor

not relative... is friend sister intro de. my friend and i bought the same insurance from her. but then my friend gross pay per month 1k more than me, so maybe he not that heart pain...

 

[lifeishard]

i would suggest keep whole life if you do not know how to invest but cut away some term and accident...saf aviva term is good enough.

but if you think ge whole life is really exp,i suggest you look at ntuc vivolife and if losing 4k (assuming you already paid 2yrs) is worth it in the long run.

 

[jaster7]

even if you think you don't plan to invest much and likely to keep in FD only. Can you be absolutely sure that you will never ever EVER invest in stocks for the rest of your life? Do you think you may change your plan sometime in the future (when you have spare cash)?

What happens if there is a big crash in stock market, and you have a big sum of money to buy at the bottom of the crash, as compared to having no money and can't even buy when you know that it is the best time to buy. Think about it.

 

[kebinu]

You don't even know what you want. Hmmmm

Early ci is good to have.

Do you know what you want to protect against first?

 

[ngsngn]

After thinking on and off for 1month... i still can't decide to drop my Whole life or not... sigh!

Btw, does Whole Life by default itself has maturity? or only upon surrender then I will receive cash value... I keep thinking next time at age 65, the surrender cash value is eroded away by inflation... but we can't predict the future...

 

[sg_investor]

For the premium is only 90.2 for a $200k coverage, is it a high or low price?

My accident insurance with Chubb is $260 annual for $50K coverage.

The GE website has an example with $800 premium for 200K coverage.

What is the *good* price for accident insurances?

Company: Great Eastern
Plan: AccidentCare II
Occupational Class: 1
Amount of benefits: $200k
Annual Premium: $90.20
Premium Term: 51years
Age of next birthday: 25

 

[OngHuatHuat]

I thought yours is limited pay?

After thinking on and off for 1month... i still can't decide to drop my Whole life or not... sigh!

Btw, does Whole Life by default itself has maturity? or only upon surrender then I will receive cash value... I keep thinking next time at age 65, the surrender cash value is eroded away by inflation... but we can't predict the future...

 

[OngHuatHuat]

I cancelled my accident plan, only keep term + life.

For the premium is only 90.2 for a $200k coverage, is it a high or low price?

My accident insurance with Chubb is $260 annual for $50K coverage.

The GE website has an example with $800 premium for 200K coverage.

What is the *good* price for accident insurances?

 

[sg_investor]

i see. i am reviewing and may cancel accident too cos i dont drive and public transport is quite safe here.
but before that, what's the usual price one pays for accident insurance? i dont wish to overpay a lot.