Prudential Assurance Account

[dancingqueen]

I have a Prudential Assurance account since 2005. It's an investment account but returns are cannot make it. Premiums are $3.5k per annum.

Does it make more sense to cancel this and buy term insurance instead?

 

[oceanicmanta]

if not wrong, this is a investment linked policy ... which fund r you invested in ?

there shld be Life and/or Critical Illness cover attached to it ... so you need to assess if you still need such cover

i also cancelled my Pru ILP several years back after servicing for 20yrs (good riddance), and I was able to get similar cover under Mindef GTL

 

[dancingqueen]

if not wrong, this is a investment linked policy ... which fund r you invested in ?

there shld be Life and/or Critical Illness cover attached to it ... so you need to assess if you still need such cover

i also cancelled my Pru ILP several years back after servicing for 20yrs (good riddance), and I was able to get similar cover under Mindef GTL

It was in Asian equity, China India and Emerging Fund. But I am not looking so much at investments.

CI cover $200k , Death $100k. Term premiums are a lot lower but will increase annually.

 

[boredboiboi]

It was in Asian equity, China India and Emerging Fund. But I am not looking so much at investments.

CI cover $200k , Death $100k. Term premiums are a lot lower but will increase annually.

Depends on what term u buy, if u buy the fix premium type, it will not increase annually

 

[BBCWatcher]

For comparison, Etiqa will sell a term life insurance policy (to age 65) to a 40 year old (age next birthday) male nonsmoker with S$200,000 of coverage (double the death benefit), with their CI accelerator rider, for a level premium of S$634 per year. See CompareFirst.sg for other examples.

Do you even need the insurance coverage now?

 

[dancingqueen]

For comparison, Etiqa will sell a term life insurance policy (to age 65) to a 40 year old (age next birthday) male nonsmoker with S$200,000 of coverage (double the death benefit), with their CI accelerator rider, for a level premium of S$634 per year. See CompareFirst.sg for other examples.

Do you even need the insurance coverage now?

I am 48 right now.. I suppose I still need insurance coverage if I am going to surrender my Prudential ILP

 

[Geeezz]

huai not reduce the premium to the minimum instead?

 

[exterminazn]

The policy have insurance coverage, so u may wanna think if cancel, do u still require insurance or have other policies to fall back on

if still require insurance, then is your health still in good condition?

 

[BBCWatcher]

I am 48 right now.. I suppose I still need insurance coverage if I am going to surrender my Prudential ILP

I couldn't say. If you can adequately self-insure now, no, you don't.

For a male nonsmoker age 49 next birthday with the same assumptions the annual flat premium would be $1,024.

 

[sohguanh]

Does it make more sense to cancel this and buy term insurance instead?

Term insurance some end at age 65 no more. Try to get term insurance that can go beyond that as logic will dictate as you grow older you tend to get more illness. But insurers are not stupid either, they take so little premiums (term insurance in this case) but need to pay out so much more in benefits if it is claimed then insurers are doing a losing business deal.

Please share if you later decide to go for term insurance and manage to find one insurer that can give you above age 65 say all the way to 85 for e.g will be good for other readers in here. If go beyond 65 please share how much premiums too for those age between 65 - 85.

 

[dancingqueen]

I couldn't say. If you can adequately self-insure now, no, you don't.

For a male nonsmoker age 49 next birthday with the same assumptions the annual flat premium would be $1,024.

Term insurance some end at age 65 no more. Try to get term insurance that can go beyond that as logic will dictate as you grow older you tend to get more illness. But insurers are not stupid either, they take so little premiums (term insurance in this case) but need to pay out so much more in benefits if it is claimed then insurers are doing a losing business deal.

Please share if you later decide to go for term insurance and manage to find one insurer that can give you above age 65 say all the way to 85 for e.g will be good for other readers in here. If go beyond 65 please share how much premiums too for those age between 65 - 85.

For double my current coverage, FWD approved my term insurance at $840 per annum but its renewed anually. My concern is as I age, the premium will likely to go higher and higher. Unless I go for the Fixed Term Plan, which I think is lock for 5 years renew.

 

[BBCWatcher]

Term insurance some end at age 65 no more. Try to get term insurance that can go beyond that as logic will dictate as you grow older you tend to get more illness.

Um...why? If your dependents are depending on your income from work past age 65 then something is quite wrong because you yourself can't depend on that income. You're 65+.

 

[BBCWatcher]

The direct purchase term life insurance policies listed at CompareFirst.sg are level premium policies. The premium will not change. And you're not obligated to pay the next premium if you wish to drop the policy.

Check the policy letter, of course, but this arrangement is quite standard for this type of insurance (term life insurance to age 65).

 

[sohguanh]

Um...why? If your dependents are depending on your income from work past age 65 then something is quite wrong because you yourself can't depend on that income. You're 65+.

I believe you are not Asian. Don't you know Asian parents some kids age 30-50 parents still caring and looking after? I definitely not those as I don't believe in this life-long pursuit to care for the kids. But there are others who has those thinking and then beyond 65 may just be what they are looking for. I am not looking for myself I am curious to know if insurer can give beyond 65 with affordable premiums for term insurance

 

[BBCWatcher]

I am not looking for myself I am curious to know if insurer can give beyond 65 with affordable premiums for term insurance

How do you think the math works? Everyone will eventually die, and the insurance company has to pay for its various overheads and collect a reasonable profit.

Let’s suppose you die at age 70. That’s 5 years into a retirement you planned to last 20+ years (for example). Your dependent, if you have one, presumably inherits the entire remainder of your estate. That was enough for you to live on for 20+ more years (presumably), so why wouldn’t it be enough for your dependent (who’s now 40 let’s suppose) to live for another 20+ years? It would be, surely.

Life insurance works great for income replacement (of a deceased breadwinner). But it just isn't a great tool for solving the sort of problem you're describing, for example caring for a profoundly disabled child for the rest of the child's life. Life insurance is basically backwards approaching/after retirement: it pays if you die sooner in retirement, precisely when your estate is bigger (hasn't been whittled down yet). (Whole life insurance is arguably a little better oriented, but...) Typically what you'd do instead (and much more effectively) is nail down your modest retirement lifestyle with an adequate life annuity income stream then use all surplus to support your (still) dependent with lifetime gifts and/or the purchase of a life annuity income stream for him/her. Starting with maxing out CPF LIFE since that's the best such deal going.

 

[dancingqueen]

Will surrender my ILP and get Prudential term with fix premium.. It's almost similar premium as my ILP but with added early CI at same amount coverage.

I will be covered till 75yr although it can be till 99 but the premium will likely be higher.

 

[boredboiboi]

Will surrender my ILP and get Prudential term with fix premium.. It's almost similar premium as my ILP but with added early CI at same amount coverage.

I will be covered till 75yr although it can be till 99 but the premium will likely be higher.

But why prudential term?