Multiplier WL plans

[electriique]

Hi, I've done a search and there isn't much discussion on multiplier WL plans, but mostly about term plans.

I've gotten quotes from friends on GE's Flexilife Multiplier and NTUC's Vivolife 350. Are there any other good multiplier/booster plans?

29 ANB, non-smoker, looking at around $120k coverage (when multiplier in effect). To have CI coverage.

 

[deepblueli]

Hi, I've done a search and there isn't much discussion on multiplier WL plans, but mostly about term plans.

I've gotten quotes from friends on GE's Flexilife Multiplier and NTUC's Vivolife 350. Are there any other good multiplier/booster plans?

29 ANB, non-smoker, looking at around $120k coverage (when multiplier in effect). To have CI coverage.

Most WL nowadays have multipliers as you don't need that much coverage when you are not working anymore. So, all discussions in the forum about WL I think you can think of as multiplier WL. I think there is a bias in the forum towards terms, but I think both WL and terms are very similar in terms of underwriting and coverage, just the coverage amount, coverage period, premium payment amount, and premium payment period are different.

My personal opinion if your financial allows (e.g. don't spend more than 10% of your income on insurance), having a WL is good, or else terms should be the most cost effective way of giving you the protection you need. As other members in the forum said, I also agree insurance is for protection, not for saving / investment. If you buy WL, make sure you don't plan such that you are going to surrender the policy in the future for profit.

 

[computers70]

Most WL nowadays have multipliers as you don't need that much coverage when you are not working anymore. So, all discussions in the forum about WL I think you can think of as multiplier WL. I think there is a bias in the forum towards terms, but I think both WL and terms are very similar in terms of underwriting and coverage, just the coverage amount, coverage period, premium payment amount, and premium payment period are different.

My personal opinion if your financial allows (e.g. don't spend more than 10% of your income on insurance), having a WL is good, or else terms should be the most cost effective way of giving you the protection you need. As other members in the forum said, I also agree insurance is for protection, not for saving / investment. If you buy WL, make sure you don't plan such that you are going to surrender the policy in the future for profit.

I have to agree not to spend more than 10% of you income.
Surrender your life policies would really depend, as usually those who surrender buy multiple policies from multiple insurers. They do that, usually because they do not need the coverage or lets the other polices work for them.

 

[deepblueli]

I have to agree not to spend more than 10% of you income.
Surrender your life policies would really depend, as usually those who surrender buy multiple policies from multiple insurers. They do that, usually because they do not need the coverage or lets the other polices work for them.

Then it means you overinsured in the first place. When the time of buying insurance, if you treat it as just for protection, you don't plan for surrendering the policy in the future. The sum assured is the amount you need for your protection.

Of course there could be some unforeseen circumstances that you need cash urgently, then surrendering the policy is one of the options you can consider, but you most likely incur a loss by surrendering the policy. Surrender the policy should not be an expected and should not be part of your financial planning for retirement, etc.

 

[electriique]

I'm not sure if I'm misunderstanding something, but I don't see term as being much more value based on the quotes I've been getting.

I get a $380 quote for $100k term (to 65, with CI) and a $1k quote for $35k WL (with 3x multiplier, also with CI). Based on a 4% interest rate, I get about $36k at the end of 30 years. Doesn't seem like much of a difference.

 

[Bigoya]

I'm not sure if I'm misunderstanding something, but I don't see term as being much more value based on the quotes I've been getting.

I get a $380 quote for $100k term (to 65, with CI) and a $1k quote for $35k WL (with 3x multiplier, also with CI). Based on a 4% interest rate, I get about $36k at the end of 30 years. Doesn't seem like much of a difference.

Back to the theory of pricing, the lesser you buy, the more expensive it would be.
The more you buy, the difference between premium of both plans would be greater.

Seems like your Term quote is from AXA...
For a $500k SA Term for Death/TPD/CI to 65, it'd cost $1,557/yr.
TPO = $57,609

For your WL quote, is it a 25yr pay plan? I'm guessing it's from Manulife @ $1,088/yr.
Apple to apple, for a $500k SA it would have cost $4235.88/yr for 25 years.
TPO = $84,717

On a side note, unless you have other insurance policies to protect your death/TPD/CI, $100k SA is clearly insufficient.

Lastly, how did u derive the $36k at end of 30 years? Did you get the information from BI or you own self project?

A lot of missing info from your post btw...

 

[computers70]

I'm not sure if I'm misunderstanding something, but I don't see term as being much more value based on the quotes I've been getting.

I get a $380 quote for $100k term (to 65, with CI) and a $1k quote for $35k WL (with 3x multiplier, also with CI). Based on a 4% interest rate, I get about $36k at the end of 30 years. Doesn't seem like much of a difference.

Hmm, i suggest talking to an agent you understand better. I am sure the agent who explain the product to you above did not explain well.

 

[feralslash]

Back to the theory of pricing, the lesser you buy, the more expensive it would be.
The more you buy, the difference between premium of both plans would be greater.

Seems like your Term quote is from AXA...
For a $500k SA Term for Death/TPD/CI to 65, it'd cost $1,557/yr.
TPO = $57,609

For your WL quote, is it a 25yr pay plan? I'm guessing it's from Manulife @ $1,088/yr.
Apple to apple, for a $500k SA it would have cost $4235.88/yr for 25 years.
TPO = $84,717

On a side note, unless you have other insurance policies to protect your death/TPD/CI, $100k SA is clearly insufficient.

Lastly, how did u derive the $36k at end of 30 years? Did you get the information from BI or you own self project?

A lot of missing info from your post btw...

May I know why S$100k is insufficient?

 

[parallelyy]

[/QUOTE]This isn't an apple to apple comparison, different coverage term and different sum assured.

The argument for term is that you can always invest the difference in premiums yourself for better returns