Need Help In Finalising Insurance Needs.

[hozhijie]

Hi guys! I am 22 this year and just starting out to work earning less than $2k per month and will need your help in helping me in finalising my insurance needs!

My current plan is to go with :

MHA Group TERM : $200,000 Death
AXA TERM : $100,000 Death/TPD

H&S Plan From AXA
- AXA Shield Plan B
- AXA Basic Care Rider

I understand that H&S should be the No.01 Priority so no question asked I will get that plan, but I just want to ask if Critical Illness is actually needed in term insurance?

Everyone please feel free to give comments or any suggestions if you think that my insurance planning can be tweaked to be better!

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[Perisher]

Hi guys! I am 22 this year and just starting out to work earning less than $2k per month and will need your help in helping me in finalising my insurance needs!

My current plan is to go with :

MHA Group TERM : $200,000 Death
AXA TERM : $100,000 Death/TPD

H&S Plan From AXA
- AXA Shield Plan B
- AXA Basic Care Rider

I understand that H&S should be the No.01 Priority so no question asked I will get that plan, but I just want to ask if Critical Illness is actually needed in term insurance?

Everyone please feel free to give comments or any suggestions if you think that my insurance planning can be tweaked to be better!

Sent from Xiaomi MI 4I using GAGT

It seems like you have already done your research. I would get CI cover.

 

[akwl88]

Cover death, tpd and ci first

 

[01asdf]

It's nice to have but not absolutely necessary if budget is a constraint. At less than 2k a month I really would consider how much you can spare for insurance.

Do take note that these are all costs over and above any savings you may/should also be budgeting for.

 

[limster]

Hi guys! I am 22 this year

I understand that H&S should be the No.01 Priority so no question asked I will get that plan, but I just want to ask if Critical Illness is actually needed in term insurance?


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Age 22, CI is not important if you have other pressing needs for your cash. The exception is that if you have a family history of CI or you are in poor health/smoker etc....

Otherwise you can always sign up for CI later at age 30 and save the premium between age 22-30.

 

[JK1688]

The premium for 100k

$155/yr for death/tpd/ti till 65
$297/yr for death/tpd/ti/ci till 65

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[jmapsmylife]

Hi guys! I am 22 this year and just starting out to work earning less than $2k per month and will need your help in helping me in finalising my insurance needs!

My current plan is to go with :

MHA Group TERM : $200,000 Death
AXA TERM : $100,000 Death/TPD

H&S Plan From AXA
- AXA Shield Plan B
- AXA Basic Care Rider

I understand that H&S should be the No.01 Priority so no question asked I will get that plan, but I just want to ask if Critical Illness is actually needed in term insurance?

Everyone please feel free to give comments or any suggestions if you think that my insurance planning can be tweaked to be better!

Sent from Xiaomi MI 4I using GAGT

Can i ask why do you need so much for death benefit? lots of dependent? i forget where i read, death benefit should be 10x ur annual income(this is provided you have dependent if not death benefit is not really useful). if yr income is less than 2k do you need 300k death benefit?

 

[akwl88]

http://singaporeanstocksinvestor.blogspot.sg/2015/03/ak-answers-ten-questions-from.html

sic for you grad

 

[FP_IFA]

Hi guys! I am 22 this year and just starting out to work earning less than $2k per month and will need your help in helping me in finalising my insurance needs!

My current plan is to go with :

MHA Group TERM : $200,000 Death
AXA TERM : $100,000 Death/TPD

H&S Plan From AXA
- AXA Shield Plan B
- AXA Basic Care Rider

I understand that H&S should be the No.01 Priority so no question asked I will get that plan, but I just want to ask if Critical Illness is actually needed in term insurance?

Everyone please feel free to give comments or any suggestions if you think that my insurance planning can be tweaked to be better!

Sent from Xiaomi MI 4I using GAGT

I would suggest you up the MHA Group Term by $100k and also add the Living Care rider. You can then drop the AXA Term. This will lower the overall premium and yet give you the cover you need at this moment. Note that living care rider is not level.

You can consider adding more cover later when your salary is higher.

 

[kianergy]

i would suggest u check whether ur parents bought any H&S shield plan for you when u were younger before switching. also, you should get CI coverage as well in my opinion.

 

[dendii]

If you are looking for longer coverage until 70, 75 or even 80 years old, you might want to do a comparison to see if you are going to be paying higher premium for the term vs MHA eventually.

To my knowledge, it will be better to have a leveled term coverage instead of fully relying on the MHA because premium after 65 is extremey high. Your AXA term will still be useful IMO.

I would suggest you up the MHA Group Term by $100k and also add the Living Care rider. You can then drop the AXA Term. This will lower the overall premium and yet give you the cover you need at this moment. Note that living care rider is not level.

You can consider adding more cover later when your salary is higher.

 

[FP_IFA]

If you are looking for longer coverage until 70, 75 or even 80 years old, you might want to do a comparison to see if you are going to be paying higher premium for the term vs MHA eventually.

To my knowledge, it will be better to have a leveled term coverage instead of fully relying on the MHA because premium after 65 is extremey high. Your AXA term will still be useful IMO.

His problem is his salary is a bit low so you want to max your cover with as little premium as you can now. Covering to age 65 is good enough for now. As mentioned, he can go for higher and longer cover when his salary is higher. Cheers!

 

[hozhijie]

I currently do not have any other insurance coverage other than the $200k MHA Group Term.

I plan to set aside no more than $50/month for insurance since I have a tight budget as most of my money left after CPF deduction I am assigning them to *wedding savings, investment, parents allowance, transport and personal usage.

My dependents are primary my parents since they are over 63&57 years old and i dont think they will be able to work for much longer.

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[dendii]

You might want to up your budget by taking a small amount from your wedding savings/investments/allowances/transport/personal usage to get some CI coverage as well.

While limster has a point on why you shouldnt get CI coverage, I feel its still important because there are cases of people getting CI at an early age even without family history.

Since insurance is about probability, imo i will rather be covered then to not be when things happen.

I currently do not have any other insurance coverage other than the $200k MHA Group Term.

I plan to set aside no more than $50/month for insurance since I have a tight budget as most of my money left after CPF deduction I am assigning them to *wedding savings, investment, parents allowance, transport and personal usage.

My dependents are primary my parents since they are over 63&57 years old and i dont think they will be able to work for much longer.

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[hozhijie]

If I should get CI, then is there a guideline to how much i should get insured for CI portion? 50k? 100k?

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