Help me optimise my insurance coverage

[CaptainSGP]

Hi all,

I am single, 29 year old Male Non Smoker. Would appreciate if anyone can suggest/help me optimise my current insurance coverage. I have no dependents.

My insurance plans

1)NTUC Participating Whole Life Living Plan with late stage CI rider. Sum Insured 100k. Current Death/CI benefit around $126k. This plan has cash value, and is effective in 2004. Regular annual premiums. My intention is to hold this continue paying for life/ till i make CI claims. Annual Premium is 1.4k.

2) Manulife LifeReady Whole Life with early CI rider. I’m preferred non smoker for this policy. This is a 10 Pay participating plan, Sum Insured $100k, effective date is in Feb 2018. This plan has cash value. Intention is to fully pay & hold this for life/till I make CI claim. Annual premium is 4k for 10 years

3) Raffles Integrated Shield (Raffles Hospital option) with rider. Can’t remember how much I’m paying but it’s the standard rate.

4) Mindef Aviva Personal Accident plan 300k Sum Insured, $3 per month

All constructive views are welcomed. Insurance agents are free to PM me though I’m very unlikely to buy any.
Cheers

 

[reddevil0728]

optimise in what way? planning to surrender/cancel?

 

[boredboiboi]

Hi all,

I am single, 29 year old Male Non Smoker. Would appreciate if anyone can suggest/help me optimise my current insurance plans. I have no dependents.

My insurance plans

1)NTUC Participating Whole Life Living Plan with late stage CI rider. Sum Insured 100k. Current Death/CI benefit around $126k. This plan has cash value, and is effective in 2004. Regular annual premiums. My intention is to hold this for life/ till i make CI claims. Annual Premium is 1.4k

2) Manulife LifeReady Whole Life with early CI rider. I’m preferred non smoker for this policy. This is a 10 Pay participating plan, Sum Insured $100k, effective date is in Feb 2018. This plan has cash value. Intention is to hold this for life/till I make CI claim. Annual premium is 4k for 10 years

3) Raffles Integrated Shield (Raffles Hospital option) with rider. Can’t remember how much I’m paying but it’s the standard rate.

4) Mindef Aviva Personal Accident plan 300k Sum Insured, $3 per month

All constructive views are welcomed. Insurance agents are free to PM me though I’m very unlikely to buy any.
Cheers

What do you want to optimize? By buying wholelife 10 years payment i think is not worth it already. My opinion but since almost halfway then have to go all the way.

 

[CaptainSGP]

optimise in what way? planning to surrender/cancel?

Lower Premiums for same benefits or higher benefits for the same premiums

 

[CaptainSGP]

What do you want to optimize? By buying wholelife 10 years payment i think is not worth it already. My opinion but since almost halfway then have to go all the way.

There was substantial discounts/Comm back available when I bought the whole life. 10 pay was to maximise the discount & paying 4k per year is not a problem

 

[reddevil0728]

Lower Premiums for same benefits or higher benefits for the same premiums

if you don't plan to buy, then the only way is to surrender/cancel?

 

[boredboiboi]

There was substantial discounts/Comm back available when I bought the whole life. 10 pay was to maximise the discount & paying 4k per year is not a problem

Ok. Then what do u wan to achieve?
plans to look at - annuity for retirement on top of cpf life. Protection wise, i duno what ur income but u can guage it urself.
Rule of thumb, death/tpd - 10 times if annual income, eci - 3 times if annual income, ci - 5 times or more of annual income.

another plan that u can look at is the disability income.

anyway the mindef personal accident plan just cancel away, although its only $3 but its a redundant plan where it doesnt pay u any outpatient benefit etc while market personal accident plan cover outpatient and its as cheap as about $8/month but its slightly higher than what mindef personal accident plan.

 

[Okenba]

For (1) & (2): You don't need life insurance unless you have dependants. Since you are single, are your parents relying on you for financial support? If not, what is the point of them getting money when you die? Will it make them feel better? Might as well save the premiums and buy something for them now. Make them happy now.

For (3): Integrated shield plans are always important. Which one to get can be a personal decision. There is a stickied thread you can read through to find out more.
I think Raffles has a A ward plan that includes covered treatment at Raffles hospital. If that is your plan, I think it's a pretty good choice.

For (4): I personally don't understand the value of accident plans. I believe they don't cover for illness? So if you get into an accident and lose income as a result, it may help. But if you fall seriously I'll and lose income, it doesn't help at all.

What you may want to look at instead is Disability Income Insurance (DII) which insures you against loss of income if you cannot work. Then whether it is accident or illness, so long as you are unable to work, DII will help. I think there is a DII thread you can search for to read up more about as well.

 

[dapoh86]

Hi all,

I am single, 29 year old Male Non Smoker. Would appreciate if anyone can suggest/help me optimise my current insurance coverage. I have no dependents.

My insurance plans

1)NTUC Participating Whole Life Living Plan with late stage CI rider. Sum Insured 100k. Current Death/CI benefit around $126k. This plan has cash value, and is effective in 2004. Regular annual premiums. My intention is to hold this continue paying for life/ till i make CI claims. Annual Premium is 1.4k.

2) Manulife LifeReady Whole Life with early CI rider. I’m preferred non smoker for this policy. This is a 10 Pay participating plan, Sum Insured $100k, effective date is in Feb 2018. This plan has cash value. Intention is to fully pay & hold this for life/till I make CI claim. Annual premium is 4k for 10 years

3) Raffles Integrated Shield (Raffles Hospital option) with rider. Can’t remember how much I’m paying but it’s the standard rate.

4) Mindef Aviva Personal Accident plan 300k Sum Insured, $3 per month

All constructive views are welcomed. Insurance agents are free to PM me though I’m very unlikely to buy any.
Cheers

Hello,

1) for your NTUC Participating Whole Life Plan, how long is the premium paying term? If you bought it in 2004, i suppose it is a whole-life paying plan? Most life plans now are limited-paying, maybe for 25 years only and cover you till 100 anb.

2) The Manulife plan's premiums seems to be a little too high for just 100k coverage.

3) ok for standard integrated shield plan

4) mindef plan can hold on to it.

I would think that it really depends on what you want ultimately.

I have been in the industry for 11 years and there are 2 schools of thoughts when it comes to purchasing insurance-

1) the first group of people wants to leave money behind for their loved ones when they pass on
2) the newer second group of people, who wants to be able to cash out and spend that money before they pass on.

I understand that you may be single now, so priorities might be a little different - ie leaving some money for your parents if something happens to you, or being able to pay for treatment costs (since you emphasized on ci claims). Some factors to consider would be whether the house you are living in is fully paid (ie are you helping your parents pay for house, bills etc? That would contribute to how much sum assured you require).

Otherwise, you may want to look into putting your money into endowment plans instead. There are several CI-only plans that gives you high CI payout with low premiums - these are not life plans and do not hold cash value but they are a great way to max out CI coverage without exceeding your budget.

For example, i could give you several examples of 300-500k ci coverage at 1k a year etc.

I have sent you a PM, maybe we can meet up to share more and do a "correct" policy review for you!

 

[Newthen]

Hello,

1) for your NTUC Participating Whole Life Plan, how long is the premium paying term? If you bought it in 2004, i suppose it is a whole-life paying plan? Most life plans now are limited-paying, maybe for 25 years only and cover you till 100 anb.

2) The Manulife plan's premiums seems to be a little too high for just 100k coverage.

3) ok for standard integrated shield plan

4) mindef plan can hold on to it.

I would think that it really depends on what you want ultimately.

I have been in the industry for 11 years and there are 2 schools of thoughts when it comes to purchasing insurance-

1) the first group of people wants to leave money behind for their loved ones when they pass on
2) the newer second group of people, who wants to be able to cash out and spend that money before they pass on.

I understand that you may be single now, so priorities might be a little different - ie leaving some money for your parents if something happens to you, or being able to pay for treatment costs (since you emphasized on ci claims). Some factors to consider would be whether the house you are living in is fully paid (ie are you helping your parents pay for house, bills etc? That would contribute to how much sum assured you require).

Otherwise, you may want to look into putting your money into endowment plans instead. There are several CI-only plans that gives you high CI payout with low premiums - these are not life plans and do not hold cash value but they are a great way to max out CI coverage without exceeding your budget.

For example, i could give you several examples of 300-500k ci coverage at 1k a year etc.

I have sent you a PM, maybe we can meet up to share more and do a "correct" policy review for you!

Haha, why dont share openly as what the other people and agents are doing?

 

[CaptainSGP]

Hello,

1) for your NTUC Participating Whole Life Plan, how long is the premium paying term? If you bought it in 2004, i suppose it is a whole-life paying plan? Most life plans now are limited-paying, maybe for 25 years only and cover you till 100 anb.

2) The Manulife plan's premiums seems to be a little too high for just 100k coverage.

3) ok for standard integrated shield plan

4) mindef plan can hold on to it.

I would think that it really depends on what you want ultimately.

I have been in the industry for 11 years and there are 2 schools of thoughts when it comes to purchasing insurance-

1) the first group of people wants to leave money behind for their loved ones when they pass on
2) the newer second group of people, who wants to be able to cash out and spend that money before they pass on.

I understand that you may be single now, so priorities might be a little different - ie leaving some money for your parents if something happens to you, or being able to pay for treatment costs (since you emphasized on ci claims). Some factors to consider would be whether the house you are living in is fully paid (ie are you helping your parents pay for house, bills etc? That would contribute to how much sum assured you require).

Otherwise, you may want to look into putting your money into endowment plans instead. There are several CI-only plans that gives you high CI payout with low premiums - these are not life plans and do not hold cash value but they are a great way to max out CI coverage without exceeding your budget.

For example, i could give you several examples of 300-500k ci coverage at 1k a year etc.

I have sent you a PM, maybe we can meet up to share more and do a "correct" policy review for you!

Thanks for replying !
Why do u say the Manulife premium is too high ? This is a 10 pay Par policy with cash value. Ie only pay premiums for 10 years with early CI rider. Sum insured increases over time as this is a Par policy. I’m left with 6 premium payments.

My income plan is pay till age 50 (if I recall correctly).

My intention is to keep the whole life for life (ie until I claim)

Why would a single w/o dependents & with a hospitalisation plan need 300k - 500k CI Sum Insured ?

House is not fully paid for. I’m prepared to rent out the house & stay with parents or sell it (realise profit) & buy resale HDB when I turn 35 if anything bad happens.

Posting publicly here as i think a healthy discussion can benefit many

 

[CaptainSGP]

Ok. Then what do u wan to achieve?
plans to look at - annuity for retirement on top of cpf life. Protection wise, i duno what ur income but u can guage it urself.
Rule of thumb, death/tpd - 10 times if annual income, eci - 3 times if annual income, ci - 5 times or more of annual income.

another plan that u can look at is the disability income.

anyway the mindef personal accident plan just cancel away, although its only $3 but its a redundant plan where it doesnt pay u any outpatient benefit etc while market personal accident plan cover outpatient and its as cheap as about $8/month but its slightly higher than what mindef personal accident plan.

Thanks for sharing.

nothing in particular I want to achieve. Just keeping an open mind & get more opinions.

Why do u suggest disability income. I’ve seen a few plans & find the claim definition/ process very not transparent & subjective

 

[sk0065]

Why you no have saf group term life?

just wack 500k for death
500k for ci

Since u no kids.

treat it like monthly restaurant expense

 

[boredboiboi]

Thanks for sharing.

nothing in particular I want to achieve. Just keeping an open mind & get more opinions.

Why do u suggest disability income. I’ve seen a few plans & find the claim definition/ process very not transparent & subjective

Its to protect you for lost of income when you not able to work and being payout of 75% of ur monthly income till age 65(depends u want coverage till when)

 

[ekardo]

Why you no have saf group term life?

just wack 500k for death
500k for ci

Since u no kids.

treat it like monthly restaurant expense

any other non saf related term life deal to recommend?

 

[CaptainSGP]

Its to protect you for lost of income when you not able to work and being payout of 75% of ur monthly income till age 65(depends u want coverage till when)

The reason why I dont go for DI insurance is because my work mainly involves brain & computer. Any illness that causes me to be unable to work will likely also qualify for CI. N im not someone who's vulnearable to mental illness (though ability to cliam DI for depression is doubtful also)

 

[CaptainSGP]

Why you no have saf group term life?

just wack 500k for death
500k for ci

Since u no kids.

treat it like monthly restaurant expense

I dont need such large Sum Insured. My whole Life insurances combined already gives me close to 300k Death Benefit + CI + TPD & 100+k Early CI coverage

 

[CaptainSGP]

any other non saf related term life deal to recommend?

For smaller Sum Insured amounts (e.g. <1m), SAF term life is the cheapest.

 

[soneat]

For smaller Sum Insured amounts (e.g. <1m), SAF term life is the cheapest.

For people below age 35, DPS, along with its GoGreatTerm Life, is the cheapest group term insurance.
S$128.6 per year for S$500K
https://www.greateasternlife.com/sg/en/gogreat/solutions/gogreat-term-life.html

 

[soneat]

Hi all,

I am single, 29 year old Male Non Smoker. Would appreciate if anyone can suggest/help me optimise my current insurance coverage. I have no dependents.

My insurance plans

1)NTUC Participating Whole Life Living Plan with late stage CI rider. Sum Insured 100k. Current Death/CI benefit around $126k. This plan has cash value, and is effective in 2004. Regular annual premiums. My intention is to hold this continue paying for life/ till i make CI claims. Annual Premium is 1.4k.

2) Manulife LifeReady Whole Life with early CI rider. I’m preferred non smoker for this policy. This is a 10 Pay participating plan, Sum Insured $100k, effective date is in Feb 2018. This plan has cash value. Intention is to fully pay & hold this for life/till I make CI claim. Annual premium is 4k for 10 years

3) Raffles Integrated Shield (Raffles Hospital option) with rider. Can’t remember how much I’m paying but it’s the standard rate.

4) Mindef Aviva Personal Accident plan 300k Sum Insured, $3 per month

All constructive views are welcomed. Insurance agents are free to PM me though I’m very unlikely to buy any.
Cheers

Since you mentioned you are aiming to optimise, my guess is you are trying to see if there is any "smart" move that you can execute.

My comments as follows:
1. Your setup is quite nice. LifeReady gives you whole life ECI/CI cover and Living Policy gives you CI cover for whole life. The only thing you might want to consider is a high protection/short duration term policy covering ECI/CI to protect your productive years. E.g. a S$500K term ECI/CI plan to cover you to 45yo. This will not cost much. Strokes and cancer are not uncommon in seemingly young and healthy people - and this is especially so for those who uses a lot of brain.

2. Raffles shield. I personally don't prefer this provider because its panel doctor is the narrowest and also being the smallest shield insurer, they don't have scale. Sustainability is also a question.

Summary:
1. For pure death/tpd coverage, consider the GE option, which is cheaper than Aviva GTL when you are under 35.
2. For pure CI/ECI coverage, consider getting a short term plan.
3. If you have no further insurance needs, then there is no need to make any changes.