Help on term insurance

[whysoseriousdude]

I was quoted 1million death , tpd n 150k CI for 116$ monthly from aviva till 65 yrs old . Am i overinsured ? I am 25 yrs old dis yr . Is it good ?

 

[SnowRaven]

After 65 years old you lose the coverage and you have to ask yourself if you need that kind of coverage at this point of time?

 

[laksa2003]

depend on how many dependant

 

[Shiny Things]

I was quoted 1million death , tpd n 150k CI for 116$ monthly from aviva till 65 yrs old . Am i overinsured ? I am 25 yrs old dis yr . Is it good ?

You'd be vastly overinsured - like, overinsured to the point where you wouldn't want to walk down dark alleys.

I'm assuming you don't have any dependents - not married, no kids. If that's the case, you really don't need insurance in the first place. Once you do get married, you'll want enough insurance to support the family for 5-10 years - mortgage payments, car payments, school fees, etc - if you walk in front of a bus. Singapore's hilariously expensive, I know, but a million bucks is still more than they'd possibly need.

 

[mojitoes]

Well.. TS might have parents to support.

CI and TPD also protects him from loss of income, doesn't mean that he have no dependent, he doesnt need insurance.

 

[Shiny Things]

Well.. TS might have parents to support.

Even if he does, a million bucks is still too much. If you're giving your parents a couple hundred bucks a month, a million dollars is still a few centuries' worth of monthly payments.

And if you're 25 - so your parents are, what, mid-fifties? Early sixties? Still working age, anyway - and already giving your parents more than a couple hundred bucks a month, they're leeching off you.

 

[mojitoes]

I disagree.

Firstly, we have no information about the financial status of TS, so it's really hard to tell what is the right amount to be covered. 1Mill might seems too much but ultimately it boils down to the commitment of TS. There is no one-size-fit all rules for every individuals. He might want to give his parents a few grands every month when he pass on. His parents might have retired.

Secondly, for disability, he has a long years until retirement. The loss of income is well in excess of $1Million if he were disabled yesterday. I don't think his parents has set away funds on top of their retirement funds, to cater to his disability needs.

By telling him that he is young and do not need insurance is dangerous. If something happens to TS yesterday, will you be the one who provides for him for his lifetime?

 

[makav31i]

I always believe that it is better to overinsured rather than underinsured...if you overinsured,at least if anything happens to you, you or your next of kin have some money to tide over...However if you are underinsured, anything happens to you, you don't have sufficient amount of money to tide you over the period especially if you have TPD and unable to work and no spouse or dependent...

 

[kebinu]

Need more information of TS anyway. There is a concept to plan ahead if property etc are coming soon.

 

[laksa2003]

I always believe that it is better to overinsured rather than underinsured...if you overinsured,at least if anything happens to you, you or your next of kin have some money to tide over...However if you are underinsured, anything happens to you, you don't have sufficient amount of money to tide you over the period especially if you have TPD and unable to work and no spouse or dependent...

the problem of overinsured is that you have lesser disposable income and savings which you need to build the retirement nest

 

[makav31i]

the problem of overinsured is that you have lesser disposable income and savings which you need to build the retirement nest

Depending on how much is TS salary and what is the percentage of it to TS salary, but is $116/month too much..

 

[whysoseriousdude]

Depending on how much is TS salary and what is the percentage of it to TS salary, but is $116/month too much..

Wat is the portion tat 1 shld spend on insurance ? I gt a quote till 25 yrs same coverage for $59 n i tink tats feasible .

 

[makav31i]

Wat is the portion tat 1 shld spend on insurance ? I gt a quote till 25 yrs same coverage for $59 n i tink tats feasible .

I read somewhere that all your insurance should not be more than 10% of your salary...my insurance is around 3+%..

 

[kebinu]

Wat is the portion tat 1 shld spend on insurance ? I gt a quote till 25 yrs same coverage for $59 n i tink tats feasible .

cheaper but 25 this year. married?

let's assume you get married at 28, first child at 30. The coverage will last till the child is 20. Will there be a reduction of liability by then? Property, car, child, second child etc?

You need a better planner than one who just give you quote but one who really plan better for you and explain why so.

All my clients pay below 10% of a comprehensive coverage. I do understand a lot of planners like to use 20%. I can't pay that much for insurance, reduce liability if possible.

 

[whysoseriousdude]

HMMM my plan was get this Aviva plan for 25 years without CI .. will be $48 and get 1 more of 200/300k with 150K CI at 30 or 35 yrs old to cover for 50 - 65yrs old. Is it good ? cuz wif $48 ... Ntuc quote me $40 for 300k and GE quote me $51. Is that fishy wif Aviva ???? Pls advise guys.

Note: Wif this Aviva plan .. I wont need to cater for any decreasing term insurance for mortgage and by 50 yrs old ... I tink I need not need so much coverage as children will be 15 - 20. Most imptly will be CI by den. This is my insurance planning for now.

 

[makav31i]

HMMM my plan was get this Aviva plan for 25 years without CI .. will be $48 and get 1 more of 200/300k with 150K CI at 30 or 35 yrs old to cover for 50 - 65yrs old. Is it good ? cuz wif $48 ... Ntuc quote me $40 for 300k and GE quote me $51. Is that fishy wif Aviva ???? Pls advise guys.

Note: Wif this Aviva plan .. I wont need to cater for any decreasing term insurance for mortgage and by 50 yrs old ... I tink I need not need so much coverage as children will be 15 - 20. Most imptly will be CI by den. This is my insurance planning for now.

Actually, there is nothing fishy about Aviva...SAF and Public Officer Group Insurance Scheme is now under Aviva...POGIS was previously under NTUC...the insurance company can put whatever price they want but it is up to the consumer to decide what is beneficial for themselves...

 

[Panerex]

HMMM my plan was get this Aviva plan for 25 years without CI .. will be $48 and get 1 more of 200/300k with 150K CI at 30 or 35 yrs old to cover for 50 - 65yrs old. Is it good ? cuz wif $48 ... Ntuc quote me $40 for 300k and GE quote me $51. Is that fishy wif Aviva ???? Pls advise guys.

Note: Wif this Aviva plan .. I wont need to cater for any decreasing term insurance for mortgage and by 50 yrs old ... I tink I need not need so much coverage as children will be 15 - 20. Most imptly will be CI by den. This is my insurance planning for now.

$48 per Month for $1M death term aviva plan?

It seems cheap!

I need to pay $120 per month for $1m death and TPD, and $150k CI.

What plan is yours?

 

[AhPek_Lion]

I was quoted 1million death , tpd n 150k CI for 116$ monthly from aviva till 65 yrs old . Am i overinsured ? I am 25 yrs old dis yr . Is it good ?

Isit term and flat rate till 65? if so it is considered cheap.

Ntuc 300k TPD + 100k CI is already $70.20

 

[mojitoes]

It's different. It is a 25 years term.

Panerex: The price difference is due to age. TS is only 25 years old.

 

[laksa2003]

we still dun know TS salary.. if its 1k+ per month, then definately too much.. if its 10k+ then it is financially fine