need advise on WL plan

[haohaowan2]

Recently, my parents were introduced by a premier RM for a financial product. As I am not a financial savvy person, I hope to seek some opinion from you guys and hopefully can advise my parents on this. The product is a whole life plan. The sum assured is 250k (70k cash + 180k loan). My concern is the loaning of this 180k to fund this WL plan whether this is a feasible plan?

 

[Perisher]

Recently, my parents were introduced by a premier RM for a financial product. As I am not a financial savvy person, I hope to seek some opinion from you guys and hopefully can advise my parents on this. The product is a whole life plan. The sum assured is 250k (70k cash + 180k loan). My concern is the loaning of this 180k to fund this WL plan whether this is a feasible plan?

I think you might wanna straight out say the product name... there might be details you left out and it's also easier for people who know the particular product to advise.

 

[haohaowan2]

Hi perisher, thanks for the help here. The product is premierlife generation..

 

[cLip6z]

https://www.greateasternlife.com/sg/en/personal-insurance/find-the-right-plan/protect-myself-and-my-family/life-protection/prestige-life-gold.html

This is the product, OCBC just changed the name.

The worry I think for most people is the raising interest rates environment that we are in, and whatever the figures they going to preach to you will not be as lucrative when things don't your way.

Putting that aside, the age of your parents is also an concern when comes to leveraging.

Sent from Oneplus using GAGT

 

[life_is_great]

what you have here is a single premium life insurance with a first day cash value of 80% of the premiums paid.

Bankers typically use this arrangement for their clients to fund the policy.

1) Take a loan
2) Invest in UTs, Bonds and etc to cover the interest expense from the loan
3) Buy the insurance

the sum insured should probably be more than 250K...

Most of the product information can be found in the link provided by clip6z, but in a nut shell, people buy this product to grow the size of their estate to be passed on to their beneficiaries as it covers only death and TPD. No CI coverage.

 

[Aceachiever]

ocbc.com/personal-banking/premier/premier-plg

In fact, the minimum subscription is $100k cash.
Sum assured is usually approx. 101~105% of whatever you subscribe.

Few concerns for your parent:
1) their age and eventually how long would it take for them to service the loan,
2) r they comfortable with "locking" a lump sum and probably getting cash value lesser should they need it in time of emergency?
3) What is the interest incurred for the $180k loan?
4) What r their financial objectives? Saving for their retirement needs or legacy planning?

There are other cheaper option available without the need to fork out 1 lump sum and at a affordable price within $70k cash which your parent already have and also enjoy better cash return be it for retirement or legacy planning.

 

[OCBC Bank]

Recently, my parents were introduced by a premier RM for a financial product. As I am not a financial savvy person, I hope to seek some opinion from you guys and hopefully can advise my parents on this. The product is a whole life plan. The sum assured is 250k (70k cash + 180k loan). My concern is the loaning of this 180k to fund this WL plan whether this is a feasible plan?

Hi haohaowan2,

You could find out more on our PremierLife Generation plan at http://www.ocbc.com/personal-banking/premier/premier-plg/.

Should you need any further information on this plan, do call us at 1800 773 6437 or (65) 6530 5930 (if you're overseas).

You may also contact the premier RM whom spoke to your parents.

^DG

 

[cLip6z]

Linked the wrong product, it should be Prestige Life Reward

Sent from Oneplus using GAGT

 

[kzonexx]

Hi Guys, I'm considering to take up a WL plan for 400K coverage for D, TPD & CI. Can I get indicative quotes for limited pay (25 years) as well as pay till claim?

Male non smoker
Age next birthday : 38

Thanks!

 

[akwl88]

Hi Guys, I'm considering to take up a WL plan for 400K coverage for D, TPD & CI. Can I get indicative quotes for limited pay (25 years) as well as pay till claim?

Male non smoker
Age next birthday : 38

Thanks!

Get term better la. Why u want pay so much?

 

[ahjunlah]

Hi Guys, I'm considering to take up a WL plan for 400K coverage for D, TPD & CI. Can I get indicative quotes for limited pay (25 years) as well as pay till claim?

Male non smoker
Age next birthday : 38

Thanks!

This is gonna be very costly

Sent from using GAGT

 

[lzydata]

Hi Guys, I'm considering to take up a WL plan for 400K coverage for D, TPD & CI. Can I get indicative quotes for limited pay (25 years) as well as pay till claim?

Male non smoker
Age next birthday : 38

Thanks!

I tried on http://comparefirst.sg/ under Whole Life, got this policy as the one with the lowest premium. Phew, really ex:

TM Legacy (+ Critical Illness) 25-ya (with Critical Illness Accelerator Rider)

You will pay S$ 11,164 annually for 25 years. At Year 30, the guaranteed death benefit is S$ 400,000 and the non-guaranteed death benefit is S$ 228,188 @ an illustrated rate of 4.75%.

 

[Layers]

This is gonna be very costly

Sent from using GAGT

Indeed. Esp ECI. I would guess minimum $500 per month with multipler And 30 yrs to see start to see value in surrender value

The older u buy a WL the more disadvantages.

Young 20s can just compound for 45yrs with super cheap premium vs 40s can only compound 25yrs with outrageous premiums

If $ is not an issue after retirement. Go ahead lor. It's protection against unforseen situation. U might want to reduce the coverage doh

Sent from PLUS ULTRA! using GAGT

 

[Magickiller9]

Indeed. Esp ECI. I would guess minimum $500 per month with multipler And 30 yrs to see start to see value in surrender value

The older u buy a WL the more disadvantages.

Young 20s can just compound for 45yrs with super cheap premium vs 40s can only compound 25yrs with outrageous premiums

If $ is not an issue after retirement. Go ahead lor. It's protection against unforseen situation. U might want to reduce the coverage doh

Sent from PLUS ULTRA! using GAGT

i'm really confused by all these type sia. So it's a good idea to start buying young?

 

[xiahJUNSU_]

i'm really confused by all these type sia. So it's a good idea to start buying young?

for cash value plans buy early best cause compound earlier but ofc dont get those cashback thingy, opt for reinvest

 

[13luetooth]

Is it wise to buy a WL plan with limited pay (15 years) with small coverage i.e 100-200k at 25yo as a foundation then top up with term plan ?

Idea of having this WL plan is to have at least some coverage when I am unable to fund the premiums in future due to whatsoever reasons.

 

[T H I N K]

Is it wise to buy a WL plan with limited pay (15 years) with small coverage i.e 100-200k at 25yo as a foundation then top up with term plan ?

Idea of having this WL plan is to have at least some coverage when I am unable to fund the premiums in future due to whatsoever reasons.

Wise thinking, an important aspect of good financial planning. I believe it is always good to start with a small wholelife policy to lock in the low premiums, that policy will be the best to serve u over the long term till retirement. And good to have more than one policy to serve u for death/tpd and another set for CI, u never know how useful these will be when u retire, whether with or without dependents, with all the flexibility to make decisions in many scenarios. I dun have limited pay ones and never evaluated it. Just sharing my experience.

 

[lushiris]

Is it wise to buy a WL plan with limited pay (15 years) with small coverage i.e 100-200k at 25yo as a foundation then top up with term plan ?

Idea of having this WL plan is to have at least some coverage when I am unable to fund the premiums in future due to whatsoever reasons.

the driver behind getting your WL is ermm.. weird..

how abt you save more now so you will not have the problem of "inability to fund future premiums"?(assuming the premiums are for term, which is kinda fixed isnt it?)

LOL

 

[hogrider88]

My main insurance is term till 65. I hv a small limited pay to leave it for after 65 coverage.

 

[Mecisteus]

Is it wise to buy a WL plan with limited pay (15 years) with small coverage i.e 100-200k at 25yo as a foundation then top up with term plan ?

Idea of having this WL plan is to have at least some coverage when I am unable to fund the premiums in future due to whatsoever reasons.

Depends on whose views you are looking at.

Agent's POV: It is definitely wise to buy insurance early because you are paying less monthly while you are young. With limited paying premiums, you don't need to pay anymore in the future.

Savvy investor's POV: You plan and buy those insurances that are necessary only. ie If you plan to get married and have children, you buy insurances at maximum coverage with the lowest monthly premiums. You save up or invest the remaining cash.

Financially illiterate's POV: WL is good because I will get back my money in the future. It is like a savings plan to me.