Hi all,
I'd like to seek comments on my insurance coverage (I'll be meeting up with my FA soon) but I wanted to get opinions from people since I think FAs might be biased.
Basically, I'm a 26 year old non smoker - I'll be graduating from university this year, and will be looking into insurance policies. My situation is a little different from most as my dad has passed away from cancer a few years back (not sure if there's loading for CI as a result?) and he was the breadwinner previously (in other words, protection is of utmost importance for me when I work)
My current coverage is:
200k GE SmartProtect ($250 monthly premium, please don't ask me why I got an ILP - it was inherited - date of inception: July 2010 - already paid close to 5 years - about $8400 value - am looking into fund switching, but most of it was already sunk into initial distribution costs)
200k Additional Living Benefit (CI together with main plan)
200k GE AccidentCare II Personal Accident and Disablement Benefits Plan ($18 per month - Class 2 as I am still a student - will revert to Class 1 coverage soon)
Aviva SAF GTL 100k
I wish to:
1) Get around 500k coverage, 300k CI, 100k early CI and leave my PA at 200k (I wonder if this is inadequate).
2) Not terminate my SmartProtect even though BTIR is clearly better for me (I am educated on investments). Reason being that I'm already five years in and the initial distribution cost phase is already over. On the 10th year, 105 % premiums will be allocated so I think that it will offset the sales charges/fund mgt fees etc etc from that point. I view the distribution costs as sunk cost and moving forward, I don't think the average mortality premiums are that expensive for now.
3) Insure up to about 65 only. In other words, I plan to either reduce sum assured on SmartProtect to 0 or terminate it at 65, so high mortality rates on ILP isn't so much of an issue.
My options:
1) Leave my policies as it is. Get a cheaper personal accident rider (I think mine is expensive? Not sure what exactly does disablement benefits cover under AccidentCareII but will ask my FA soon). Get term plans - either up AVIVA or purchase 200k LUV Basic - I also plan to get the Aviva Living Care Plus for 100k.
2) Up the sum assured on both CI and Death for my SmartProtect Policy. I can do this without increasing the premiums I think.
3) Do a mix of both
If there are any comments/opinions/input on my train of thoughts, please share on my situation. I wish to think about the issue thoroughly before meeting my FA.
EDIT: just thought that I should state that I already have a as charged plan for hospitalization under ntuc (enhanced incomeshield with plus rider).
I'd like to seek comments on my insurance coverage (I'll be meeting up with my FA soon) but I wanted to get opinions from people since I think FAs might be biased.
Basically, I'm a 26 year old non smoker - I'll be graduating from university this year, and will be looking into insurance policies. My situation is a little different from most as my dad has passed away from cancer a few years back (not sure if there's loading for CI as a result?) and he was the breadwinner previously (in other words, protection is of utmost importance for me when I work)
My current coverage is:
200k GE SmartProtect ($250 monthly premium, please don't ask me why I got an ILP - it was inherited - date of inception: July 2010 - already paid close to 5 years - about $8400 value - am looking into fund switching, but most of it was already sunk into initial distribution costs)
200k Additional Living Benefit (CI together with main plan)
200k GE AccidentCare II Personal Accident and Disablement Benefits Plan ($18 per month - Class 2 as I am still a student - will revert to Class 1 coverage soon)
Aviva SAF GTL 100k
I wish to:
1) Get around 500k coverage, 300k CI, 100k early CI and leave my PA at 200k (I wonder if this is inadequate).
2) Not terminate my SmartProtect even though BTIR is clearly better for me (I am educated on investments). Reason being that I'm already five years in and the initial distribution cost phase is already over. On the 10th year, 105 % premiums will be allocated so I think that it will offset the sales charges/fund mgt fees etc etc from that point. I view the distribution costs as sunk cost and moving forward, I don't think the average mortality premiums are that expensive for now.
3) Insure up to about 65 only. In other words, I plan to either reduce sum assured on SmartProtect to 0 or terminate it at 65, so high mortality rates on ILP isn't so much of an issue.
My options:
1) Leave my policies as it is. Get a cheaper personal accident rider (I think mine is expensive? Not sure what exactly does disablement benefits cover under AccidentCareII but will ask my FA soon). Get term plans - either up AVIVA or purchase 200k LUV Basic - I also plan to get the Aviva Living Care Plus for 100k.
2) Up the sum assured on both CI and Death for my SmartProtect Policy. I can do this without increasing the premiums I think.
3) Do a mix of both
If there are any comments/opinions/input on my train of thoughts, please share on my situation. I wish to think about the issue thoroughly before meeting my FA.
EDIT: just thought that I should state that I already have a as charged plan for hospitalization under ntuc (enhanced incomeshield with plus rider).
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perhaps you could consider that