Getting started with insurance

[Compfix]

thank you..

 

[CoffeeDrinker8899]

Need some advice regarding an insurance policy of an elderly relative. As he lost contact with his insurance agent, recently I have been helping him email the insurer(GE) to make enquiries to convert his existing life assurance policy (premiums payable to age 87) so that he does not need to continue paying premiums.

Reason for conversion: He does not want to continue using savings to pay the premiums after retirement.
Background info: Original sum assured 50k. Current surrender value: approx. 56k. Guaranteed Death benefit: 96k. Non-guaranteed Death benefit: changes over time as the policy accumulates bonus.

GE replied and offered 02 options.
a) Convert to reduced paid-up assurance. The reduced sum assured of 91k (I assume this is the death benefit), surrender value about the same before conversion, no more paying premiums, no more accumulation of bonus.
b) Extended-term assurance. No numbers are quoted in the reply, except saying no surrender/loan value, no more paying premiums, no more accumulation of bonus. (I assume they match the death benefit of the original policy)

Need some advice,
1) Which option is better, a, b, or surrender the policy, or are there other options to be considered?
2) Option b) seems to be a perplexing poor offer in comparison, or am I missing something?
3) Is option b), a valid choice to spend time considering, or is it simply just something they throw in to make it look like there are choices?

 

[xtwis7]

Need some advice regarding an insurance policy of an elderly relative. As he lost contact with his insurance agent, recently I have been helping him email the insurer(GE) to make enquiries to convert his existing life assurance policy (premiums payable to age 87) so that he does not need to continue paying premiums.

Reason for conversion: He does not want to continue using savings to pay the premiums after retirement.
Background info: Original sum assured 50k. Current surrender value: approx. 56k. Guaranteed Death benefit: 96k. Non-guaranteed Death benefit: changes over time as the policy accumulates bonus.

GE replied and offered 02 options.
a) Convert to reduced paid-up assurance. The reduced sum assured of 91k (I assume this is the death benefit), surrender value about the same before conversion, no more paying premiums, no more accumulation of bonus.
b) Extended-term assurance. No numbers are quoted in the reply, except saying no surrender/loan value, no more paying premiums, no more accumulation of bonus. (I assume they match the death benefit of the original policy)

Need some advice,
1) Which option is better, a, b, or surrender the policy, or are there other options to be considered?
2) Option b) seems to be a perplexing poor offer in comparison, or am I missing something?
3) Is option b), a valid choice to spend time considering, or is it simply just something they throw in to make it look like there are choices?

It depends on what is your relative's objective right now. Is he only bothered by the fact that he needs to service the premiums till 87 while retaining the coverage?

For (b), yes they will match the death benefit. Generally paid up reduced tends to be a better option as it gives you some form of flexibility down the road.

Then again, this really depends on his profile. If he has no dependents then he may not need the death benefit where he can be better off parking the surrender value in short term FDs equivalent type of assets.

 

[CoffeeDrinker8899]

It depends on what is your relative's objective right now. Is he only bothered by the fact that he needs to service the premiums till 87 while retaining the coverage?

For (b), yes they will match the death benefit. Generally paid up reduced tends to be a better option as it gives you some form of flexibility down the road.

Then again, this really depends on his profile. If he has no dependents then he may not need the death benefit where he can be better off parking the surrender value in short term FDs equivalent type of assets.

Thanks, I think I will try to seek more info from GE, it can be quite challenging to ask for information, when they are a lot of technical terms I do not understand, and I am not sure if I am speaking to a real person or a bot sometimes.

My guess is Extended-term assurance is probably more appropriate for conversions at an earlier stage of the insurance plan, when the accrued cash value is lower.

As for his objective, I don't find it appropriate to ask as I am not that close to this relative. My best guess is, he probably treats it as a savings scheme with benefits.

 

[CoffeeDrinker8899]

Any other insurance experts here with advice on what else I should look out for? I really don't want to give bad advice, and years down the road something crops up because I have overlooked something.

 

[terriblee]

Is it better to pay insurance premium annually and save 2% or monthly since putting money in the bank now easier earn more than 2% pa?

 

[reddevil0728]

Is it better to pay insurance premium annually and save 2% or monthly since putting money in the bank now easier earn more than 2% pa?

the qns should be what happens after the era where not easy to earn 2% pa anymore.

have you thought a few steps ahead?

 

[terriblee]

the qns should be what happens after the era where not easy to earn 2% pa anymore.

have you thought a few steps ahead?

Then switch to annual? But I think 2% pa int will stay for quite a while more unless another pandemic or world war happens

 

[reddevil0728]

Then switch to annual? But I think 2% pa int will stay for quite a while more unless another pandemic or world war happens

seems like you've got it planned out?

 

[terriblee]

seems like you've got it planned out?

Kind of I guess…

 

[reddevil0728]

Kind of I guess…

Yea then guess u answered your own qns

 

[immortals]

any recommendation for good insurance agents ?

all have ulterior motive... can't blame them also. need to make money for themselves

 

[reddevil0728]

all have ulterior motive... can't blame them also. need to make money for themselves

i am not sure about ulterior motive. some can be very transparent.

 

[flowerscflowers]

Experts in insurance-currently I have medical scan 2 months later, but I am in chat with agent on to buy life insurance and critical illness insurance, my agent is advising to don't buy the these insurance first until the scan results diagnosis is out.shouldnt the agent just let me buy first since I can't run away with anything right. Please advise if agent is correct in doing this

 

[bluerail]

Experts in insurance-currently I have medical scan 2 months later, but I am in chat with agent on to buy life insurance and critical illness insurance, my agent is advising to don't buy the these insurance first until the scan results diagnosis is out.shouldnt the agent just let me buy first since I can't run away with anything right. Please advise if agent is correct in doing this

You need to declare if you are currently seeing doctor for anything or have intend to see, so you must declare your situation and insurer may postpone until your report anyway.

 

[boredboiboi]

Experts in insurance-currently I have medical scan 2 months later, but I am in chat with agent on to buy life insurance and critical illness insurance, my agent is advising to don't buy the these insurance first until the scan results diagnosis is out.shouldnt the agent just let me buy first since I can't run away with anything right. Please advise if agent is correct in doing this

Yup is correct. Insurers will also not accept as there is no result or pending any test/check etc.

 

[minamikaze]

Anyone can quote for hsbc life? Recently found out that they also have Premium discount

Person 1 - ANB 37 male non smoker, 300k death/TPD/early CI, up to age 70 and up to 75 (2 options)
Person 2 - ANB 34 female non smoker, 200k death/TPD/early CI, up to age 70 and up to 75 (2 options)

I believe the premium is linear, meaning every 100k is about the same price?

Thanks.

 

[boredboiboi]

Anyone can quote for hsbc life? Recently found out that they also have Premium discount

Person 1 - ANB 37 male non smoker, 300k death/TPD/early CI, up to age 70 and up to 75 (2 options)
Person 2 - ANB 34 female non smoker, 200k death/TPD/early CI, up to age 70 and up to 75 (2 options)

I believe the premium is linear, meaning every 100k is about the same price?

Thanks.

I can and will quote for you. I think i quoted for you before in another thread. Hsbc is birthdate sensitive. For more accurate quote. Best if u can provide your dob for month and year

1) Person 1 - ANB 37 male non smoker, 300k death/TPD/early CI, up to age 70 and up to 75 (2 options) base on 01/10/1986
till 70 - $2233.86/year
Till 75 - $2446.98/year

2) Person 2 - ANB 34 female non smoker, 200k death/TPD/early CI, up to age 70 and up to 75 (2 options) base on 01/10/1989
Till 70 - $1166.48/year
Till 75 - $1337.19/year

 

[minamikaze]

I can and will quote for you. I think i quoted for you before in another thread. Hsbc is birthdate sensitive. For more accurate quote. Best if u can provide your dob for month and year

1) Person 1 - ANB 37 male non smoker, 300k death/TPD/early CI, up to age 70 and up to 75 (2 options) base on 01/10/1986
till 70 - $2233.86/year
Till 75 - $2446.98/year

2) Person 2 - ANB 34 female non smoker, 200k death/TPD/early CI, up to age 70 and up to 75 (2 options) base on 01/10/1989
Till 70 - $1166.48/year
Till 75 - $1337.19/year

Thank you so much sir. I was gonna go for the singlife one, but saw that this HSBC life seemed to be more "worth it" as it covers early CI, albeit at a lower coverage (of course) but also seemed to have reasonable premiums.
So I'm still exploring. To be honest, I was approached by a HSBC life agent recently (by way of a "careshield life subsidy") - the whole thing didn't smell right to me so I'm not sure what to make of it, and I'm trying to do more research and asking around in the meantime. I've also opened a new thread about it to see if anyone has any idea.

 

[boredboiboi]

Thank you so much sir. I was gonna go for the singlife one, but saw that this HSBC life seemed to be more "worth it" as it covers early CI, albeit at a lower coverage (of course) but also seemed to have reasonable premiums.
So I'm still exploring. To be honest, I was approached by a HSBC life agent recently (by way of a "careshield life subsidy") - the whole thing didn't smell right to me so I'm not sure what to make of it, and I'm trying to do more research and asking around in the meantime. I've also opened a new thread about it to see if anyone has any idea.

You are welcome. Anyway there is also etiqa but their death/tpd min is 400k