Life insurance (no return type)

[camholicx]

I am currently purchasing Prudential Vantage, which insured me $500k for death.

Annual premium is about $1k

This plan have zero return hence I am wondering if it is worth.

 

[sillyofme00]

whats the yearly payment? personally i wont get life insurance, perfer term insurance

 

[camholicx]

Annual payment is $1k.

So if I don't die, the premium will be gone. Zero return.
But touchwood something happen, it covers $500k.

 

[sillyofme00]

TBH, i think term investment will be better. Example u are 30 this year, you can buy a term insurance of 40 years... Usually the yearly payment is lower... and u never know what will happen by then... If i not wrong, u need to pay for life Insurance even after u retire...

 

[TabascoSauce]

Annual payment is $1k.

So if I don't die, the premium will be gone. Zero return.
But touchwood something happen, it covers $500k.

Whatever u buy, the premium on the insurance portion will be gone.

When u buy things like ilp, endowment or even whole life, u r paying additional premium to get the 'returns'. Basically it means u r buying 2 things that are bundled tgt. So the question is whether it is worth it to buy the 'returns' portion or not. And the ans is a resounding no.

 

[Alpha04]

What is your policy coverage age?

 

[dendii]

PruTerm Vantage is a term plan, not a whole life plan

I am currently purchasing Prudential Vantage, which insured me $500k for death.

Annual premium is about $1k

This plan have zero return hence I am wondering if it is worth.

 

[akwl88]

How much return u want?

 

[unhinged_loon]

Annual payment is $1k.

So if I don't die, the premium will be gone. Zero return.
But touchwood something happen, it covers $500k.

It's term insurance. If you want 500k coverage from other types of plans such as whole life, look at the premiums that you will have to pay. Calculate the difference in premiums and then consider what happens if you prudently invest those monies.

 

[flikmy]

I am currently purchasing Prudential Vantage, which insured me $500k for death.

Annual premium is about $1k

This plan have zero return hence I am wondering if it is worth.

Assuming this is a term life plan, then you might want to also quote your particulars, i.e. Age, Gender, smoker and term tenor.

If you're about 35 years old (Male, non-smoker, term till 65) then 1k for 500k term policy sounds a little high.

 

[parallelyy]

Assuming this is a term life plan, then you might want to also quote your particulars, i.e. Age, Gender, smoker and term tenor.

If you're about 35 years old (Male, non-smoker, term till 65) then 1k for 500k term policy sounds a little high.

it's a term plan

 

[parallelyy]

TBH, i think term investment will be better. Example u are 30 this year, you can buy a term insurance of 40 years... Usually the yearly payment is lower... and u never know what will happen by then... If i not wrong, u need to pay for life Insurance even after u retire...

no longer the case as there are limited pay whole life where you only pay for 15-25 years

 

[wealth_farmer]

TS, I can't really comment on the appropriateness of the policy for you as I know nothing about you, but I would urge you to forget about words such as "zero returns" or "investment value" when thinking about insurance.

Insurance is, first and foremost, a risk transfer. For a fee, we are transferring our mortality risk (risk of dying) to an insurance company. This insurance premium should rightly be considered an expense, and not an investment. And as for returns, let's just say that we should all be very lucky if we get zero "returns" from our insurance policies because that either means we died or kena some critical illness.

If you want investment returns, as some forummers above have said, there are better ways to achieve that goal. Don't mix protection and savings/investment because you will end up with a product that does neither well, or at a reasonable price. If however you wish to opt for convenience, then of course you can do that, but just go in with your eyes open. As with everything in life, you can only pick two out of three of the following, and anyone that tells you that you can have all three is scamming you: quality, price, convenience/speed.

 

[maple96]

I am currently purchasing Prudential Vantage, which insured me $500k for death.

Annual premium is about $1k

This plan have zero return hence I am wondering if it is worth.

All u forumers' comments so far do not add much value to TS' concerns. Why focus on the words "zero return", instead of his key concern "if it is worth"? (except for post #10)

TS is asking is it worth paying $1k annual premium for sum assured of $500k upon death, for a term insurance. I supposed he knows it is a term insurance since he mentioned "zero return".

There are people here who claimed they pay $1k per year for 1million cover (is that right?), people who claim they pay only $40 per mth for $500 cover.

So can insurance experts (agents, financial advisor, etc), pls help him, if u need his personal stats, then TS would have to provide so he can compare other term insurance offered by other insurers, ie $500k cover what is the premium chargeable.

Help him decide if what he had been asked to buy is best value for money for term insurance.

 

[wealth_farmer]

All u forumers' comments so far do not add much value to TS' concerns. Why focus on the words "zero return", instead of his key concern "if it is worth"? (except for post #10)

TS is asking is it worth paying $1k annual premium for sum assured of $500k upon death, for a term insurance. I supposed he knows it is a term insurance since he mentioned "zero return".

There are people here who claimed they pay $1k per year for 1million cover (is that right?), people who claim they pay only $40 per mth for $500 cover.

So can insurance experts (agents, financial advisor, etc), pls help him, if u need his personal stats, then TS would have to provide so he can compare other term insurance offered by other insurers, ie $500k cover what is the premium chargeable.

Help him decide if what he had been asked to buy is best value for money for term insurance.

The reason is because if TS doesn't remove that conscious or subconscious focus on returns from insurance policy, TS would still be tempted if the insurance agent tries to hawk some policy that promises a return that is non-zero when TS asks for a vanilla term life policy premium information. Only when TS is convinced that the purpose of insurance is protection and not investment, and there is no desire to seek any form of returns, then can a rational and detached comparison between the different term plans be made. We just wanted to make sure of that, in case TS isn't.

You raise a good point about us not answering the other part of TS question though. I'm not an expert on term insurance, but I've always felt that the Aviva SAF Group Term life is a pretty decent deal. If TS is eligible for that, then can consider that policy. I've attached the link here that shows the generic premiums for that policy for easy reference:
http://www2.aviva.com.sg/life-and-health/for-individuals/mindef/group-term-life.html

TS can use that policy as a benchmark for comparison. MM forum also has a thread for this particular policy and he can get more information there.

 

[parallelyy]

All u forumers' comments so far do not add much value to TS' concerns. Why focus on the words "zero return", instead of his key concern "if it is worth"? (except for post #10)

TS is asking is it worth paying $1k annual premium for sum assured of $500k upon death, for a term insurance. I supposed he knows it is a term insurance since he mentioned "zero return".

There are people here who claimed they pay $1k per year for 1million cover (is that right?), people who claim they pay only $40 per mth for $500 cover.

So can insurance experts (agents, financial advisor, etc), pls help him, if u need his personal stats, then TS would have to provide so he can compare other term insurance offered by other insurers, ie $500k cover what is the premium chargeable.

Help him decide if what he had been asked to buy is best value for money for term insurance.

more details are need, for example, for low long is TS going to be covered? Is there critical illness cover?

 

[yoongmy]

I just bought a term plan, 1.3k for 500k death and TPD. 50k CI (late and early stage) coverage.

 

[akwl88]

I just bought a term plan, 1.3k for 500k death and TPD. 50k CI (late and early stage) coverage.

50k????

 

[chopra]

I am currently purchasing Prudential Vantage, which insured me $500k for death.

Annual premium is about $1k

This plan have zero return hence I am wondering if it is worth.

insurance = no return.
insurance + investment = got return


why not next time u go buy a travel insurance that cost u $1000 and give u $900 return when u come back from your 10d9n Europe trip. u feel more song to get money is it?

 

[qhong61]

I am currently purchasing Prudential Vantage, which insured me $500k for death.

Annual premium is about $1k

This plan have zero return hence I am wondering if it is worth.

Not worth it, unless you have dependents who are dependent on you.