Insurance? Im so confused! Help please!

[Kei_Li]

Hi guys,
Appreciate if any well informed bros can chip in, agents too I welcome your opinions.

I have talked with a few agents already from different companies, but the more I dig the more i get confused on the actual effectiveness of coverage and potential issues (esp ILP).

Im in my late 20s approaching 30.
Non smoker.
White collar job.


In simple this is what im looking for:

-No ILP.
Generally people advised against it, quoting various factors like high commission, uncertain on returns etc.. Im risk adverse and don't have good financial knowledge anyway so I rather not be buying ILP policy.

-Protection
I don't mind paying insurance bill like paying hand phone bills, I take it as a necessary expense of living and don't really need to have a return on capital. However most agents' recommendations include life+term, which the life portion will have a surrender value. The recommended sum insured by one agent was $500k, which if i remember correctly was a multiplier plan and will drop to a lower value once i hit 65-70years old (term expired? Life continue to run that's why?)

-Early critical illness
I'm ok with paying a bit more for ECI compared to CI for the earlier draw down of SI to maintain lifestyle if working is no longer fesible. Prefer 1 lump sum draw down or atleast 50%/50% for ECI/CI.

-Hospitalisation
Full cover including private hospital up to A class.

-Personal Accident
Not sure how much to cover for but probably $200k?

-Total Permanent Disability
Not sure how much to cover for too but probably $200k?



Sorry if the information that I provided sounds(read) messy, but they reflect what i am thinking and will be great if it gives an idea on what im looking at.


Im happy to clarify any points and to provide any not too sensitive information. Look forward to any advice.

 

[Shion]

Term insurance
Tenet Sompo PAStar
H&S

At your age, whole life will be quite expensive...

That is all you need, I guess

Anyway even if you ask here, some here will push specific products to you, can't solve your dilemma...

I am curious how come those agents never do calculations on how much coverage do you actually need ?

 

[disavowed]

Generally most people have 2 main options: let the insurance coy do everything (insurance + saving + investment), which is not recommended as you have pointed out or buy term + h&s and invest the rest yourself. As for ECI, accident etc there are arguments whether they are worth spending on...cant give u an answer. There is no in-between so you have to make a conscious decision to do the investing portion yourself. This forum has previous threads on this which u can take a look

 

[Kei_Li]

Term insurance
Tenet Sompo PAStar
H&S

At your age, whole life will be quite expensive...

That is all you need, I guess

Anyway even if you ask here, some here will push specific products to you, can't solve your dilemma...

I am curious how come those agents never do calculations on how much coverage do you actually need ?

Hi bro,
Thanks for the comment.
Understand whole life will be quite exp, but given the payment of premium for like 20 years, and will continue to have some cover after term ends, it's something I might like to consider.
Already in a dilemma, so can't get worse now haha, good to hear more.
One did calculate for me, thus the 500K.

 

[Kei_Li]

Generally most people have 2 main options: let the insurance coy do everything (insurance + saving + investment), which is not recommended as you have pointed out or buy term + h&s and invest the rest yourself. As for ECI, accident etc there are arguments whether they are worth spending on...cant give u an answer. There is no in-between so you have to make a conscious decision to do the investing portion yourself. This forum has previous threads on this which u can take a look

Thanks for chipping in bro. You are right I rather invest the rest myself for more control and little fees.

Aware that there are arguments on ECI and PA, but I think they are reasonable products, easy to understand too.

Im definitely reading up on more threads.

Cheers

 

[akwl88]

Generally most people have 2 main options: let the insurance coy do everything (insurance + saving + investment), which is not recommended as you have pointed out or buy term + h&s and invest the rest yourself. As for ECI, accident etc there are arguments whether they are worth spending on...cant give u an answer. There is no in-between so you have to make a conscious decision to do the investing portion yourself. This forum has previous threads on this which u can take a look

What he says is true.

 

[R2R_AIA]

I think you have already found your answer. If you think that is the case about investing yourself, get a term coverage.

Depending on whether you want to leave anything for your dependents, you may consider just getting a standalone eci + ci term coverage as well.

The protection plan you mentioned is meant to offer higher coverage during the period where you potentially have higher liabilities. At the end of 65/75, if you do not surrender the plan, you will still enjoy life coverage without the need to pay more premium. (If this is a limited paying life policy). But if you want to surrender, it just adds on to your retirement income.

Thanks for chipping in bro. You are right I rather invest the rest myself for more control and little fees.

Aware that there are arguments on ECI and PA, but I think they are reasonable products, easy to understand too.

Im definitely reading up on more threads.

Cheers

 

[Kei_Li]

What he says is true.

Yeah I want insurance for what it really is, to protect.
Too many gimmicks nowadays.

 

[R2R_AIA]

Not sure how much is your income.. But 500k for a whole life policy is probably going to into 400-500 monthly premium.

If limited paying whole life is something you want, you may want to consider getting lesser coverage on this aspect and use term to enhance the overall coverage amount during your liability period until 65/75.

Hi bro,
Thanks for the comment.
Understand whole life will be quite exp, but given the payment of premium for like 20 years, and will continue to have some cover after term ends, it's something I might like to consider.
Already in a dilemma, so can't get worse now haha, good to hear more.
One did calculate for me, thus the 500K.

 

[wts2013]

First understand why u need the different types of insurance, do you have dependents, etc. Insurance provides/meets different needs at different stages of our life cycle.

Let me set some common understanding about insurance policy definitions first, for this discussion to be more fruitful:

1.Whole Life policy = Protection + Savings
2.Endowment = Less Protection + More Savings (as compared to 1)
3.Term = Protection
4.ILP = Term + Investment
5.Whole Life with multiplier = Whole Life + Term

** For type 5, is the premium cheaper or more expensive as compared to buying a whole life policy plus Term policy for the same coverage as Whole life with multiplier? What other benefits are there?

I quote a forumer who posted earlier: "Insurance is not meant to make you rich. Investment is meant to make you rich. Insurance will pay for that event (Death/TPD/CI) that you insure yourself for. Investment may pay depending on market conditions. "

To me, H&S is must have to protect my savings/retirement funds, TPD/CI is needed to protect my retirement funds and retirement years, whole life gives me retirement funds, etc. Our needs/wants are different at different stages of the life cycle.

It is good if u can achieve optimum premiums for whole life and term policies to cover various needs.

Just sharing my knowledge and experience

 

[kyteo79]

I never believe in insurance ... I dunno what definitions as well. I dunno what gimmicks or coverage as well.

Different pple different needs but i always have the following

Since out from Army
1) medisave + private insurance max till private hospitals.
That is of course slow upgrade over the years

till todate
My company also covers me a pretty well coverage so i did not took up or consider any plans. Will i build up my wealth and savings externally.

Today
As i have bought a property and took up a loan so i have to get protection;

term + CI (only now mid 30s)
i will start to embark in the range of 1mil, 300-500k.

Maybe when i get old then i do possible conversion to life policy.

Thats all my 2 cent contribution.

+++

Oh yah in my 23 when i start my first job i bought 700 per month worth of insurance for dunno what stupid reasons and in the end 6 months later cannot afford.

So be smart buy what you really need and not something that is good to have but not necessary ...

all the best.

 

[Kei_Li]

Bros, it's all very useful comments, working now so cannot read in details and reply, will do it later. I feel like buying you guys kopi
Keep them coming!

 

[akwl88]

Term covering death, tpd and ci. Plus h/s plan. Basic liao.

 

[wts2013]

Buying insurance is a long term commitment. Buy what u can afford to pay over the long term and buy what u need now.

As one age and income grow and needs change, u can always add another policy for new needs.

I bought my first one, $74 per mth, whole life policy. As my income grow, I add another whole life policy for different coverage or increased coverage. Then add as I can afford and need increased coverage.

Buy whole life policy must buy young, then premium low and fixed forever till maturity.

Buying multiple policies have its advantages, especially for retirement needs/planning when it comes.

Think

 

[wts2013]

How I wish the gahmen will amend the law soon, so I can choose "death by doctor" in case of tpd or TI, then dun need those type of insurance cover

 

[marvel.avengers.ultron]

Insurance advice needed

Hi Folks,

I am keen to get some basic insurance coverage like Hospitalization schemes.

Any advice which insurance companies to go for?

Thanks

 

[misosoup365]

Just keep it simple.

1. Hospitalisation DIEDIE MUST BUY
2. Term - for pure protection to cover your dependents (maybe add CI)
3. Whole life - get 1 or 2 small one. Protection while you need it and retirement income when you are old.
4. Stay away from everything else.

If you really want PA which I do not see the point, the SAF GTL Term includes PA. So you can keep that as a hybrid. ( Only if you have SAF GTL)

 

[R2R_AIA]

Hospitalization schemes are competitve across insurers. You can look at aia, axa, aviva, ge, ntuc and pru.

Premium wise, ntuc is the cheapest. But in many cases, your servicing agent matters more in my opinion.

Hi Folks,

I am keen to get some basic insurance coverage like Hospitalization schemes.

Any advice which insurance companies to go for?

Thanks

 

[akwl88]

Hospitalization schemes are competitve across insurers. You can look at aia, axa, aviva, ge, ntuc and pru.

Premium wise, ntuc is the cheapest. But in many cases, your servicing agent matters more in my opinion.

What he says is true. The agent must be knowledgable and responsive.

 

[wts2013]

Hospitalization schemes are competitve across insurers. You can look at aia, axa, aviva, ge, ntuc and pru.

Premium wise, ntuc is the cheapest. But in many cases, your servicing agent matters more in my opinion.

h&s is for long term, premium increases as one ages, buy ntuc the cheapest. Decide which "class" u want, B, A or pte

I have ntuc enhanced incomeshield B with rider (100% cover).

Agent can resign or join another world hor