Shield + Term/Life Insurance inquiries

[Cookie Muncher]

here's what an advisor recommended me,

1. AIA HealthShield Gold Max Essential

he showed me AIA and AVIVA and gave some comparisons between the 2, he recommended AIA because it has better coverage/terms than AVIVA. When i asked what about the rest, he mentioned the other 3 either have poorer coverage or more pricey, so not recommended. I feel that AIA is ok, just like to hear some opinion.

2. Whole Life Insurance

Just told me to get Life plan because it has cash value, Term no value etc. I wasn't convinced by him on this because i read something on Term vs Life, and the advice was to get Term because it is affordable and has higher coverage, Life is costly and the cash value which you will get is because you pay extra premium to them.

Am i right to say getting a Term plan is better than Life? and which term plan will you guys recommend?

Thanks

 

[reinphd]

My take is he's from AIA? Ask him to show proof that the other 3 (whichever they are) have worse coverage. Don't just take his words for it. You want facts and figures. Not hearsay.

Yes. Take term. Period. Many threads already explained, even with calculations, why term is better than life in many ways (notice I didn't say in every way).

Sent from Samsung SM-G900F using GAGT

 

[djchris]

Life plan confirm have cash value. After all, you deserve some money for filling the pockets of the insurance company for years.

 

[PostCountWarrior[+1]]

i have been thinking abt this... i have come up with a compromise, buying life but with decreased coverage after 65.

say u buy a life insurance cover u 250k, after 65 when children all grown up, coverage drops to 100k for example.

u pay more than a term that ends at 65 but lesser than a life insurance that covers 250k for ur whole life.

 

[limster]

say u buy a life insurance cover u 250k, after 65 when children all grown up, coverage drops to 100k for example.

Like I mentioned in other threads, the strategy is buying 2 small policies with early breakeven point and investing the rest. At the breakeven point, if you are moderately successful, surrender one policy to reduce your coverage. If you are super successful investor, surrender both policys and use the cash to continue making more winning investment. If you are terrible at investing, then keep the 2 life policies and consider buying ILP.

 

[expert128sg]

Between Life and Term Life plan, you should decide on the coverage period and obj that you want.

If your obj is to cover your entire life, then:

Life for e.g. u pay $3k a month for 15 years thats translate to about 45k for 15 years yet it covers you till 99/100.

On the contrary, if term you have to pay till 99, whats the total cost? Not forgetting you might not be able to afford the premiums in later years.

If your plan is to cover your younger years only term is better as it is cheaper yet has higher coverage.

For H&S i never know AIA has better coverage. Never scrutinise AiA with the rest before. But one thing i read in another thread before is for preggie complication, AIA dont cover as comprehensive as GE. The rest you have to compare le haha

 

[VictorvonDoom]

For 27yo ANB

AIA is the most expensive for coverage in Government A wards if full riders (co-payments and deductibles) are taken.

AIA is the second expensive (difference about 10k) for coverage in Private wards if full riders (co-payments and deductibles) are taken.

IP coverage are similar if you ask me. unless AIA has something specific that you are looking out for, I will rather pick the cheapest IP available. NTUC Income is the cheapest fyi.

 

[PostCountWarrior[+1]]

Like I mentioned in other threads, the strategy is buying 2 small policies with early breakeven point and investing the rest. At the breakeven point, if you are moderately successful, surrender one policy to reduce your coverage. If you are super successful investor, surrender both policys and use the cash to continue making more winning investment. If you are terrible at investing, then keep the 2 life policies and consider buying ILP.

I dont think we are not too far in opinion. I am assuming u r talking about life insurance here as term has no cash value. so firstly we both agree life is better than term.

now talking about your surrender value, yes maybe we are different, because our policies are different, lets take example:

1) yours is a $250k life insurance, which covers you for life.
2) mine is a $250k life insurance which covers $250k till 65, then coverage drops to $100k after 65 and till the day I die. I want decreased coverage when my children are grown up.

yours will have a higher premium than mine because you are payingfor more coverage over a wider time period. But of course since you are paying high premiums, your cash value will be more when you withdraw. Mine is lesser.

I dont disagree on your breakeven point, that one I will definetly consider when my breakeven pt is there and considering my net worth at that time.

Let me know if you have any more views, happy to discuss further.

 

[Cookie Muncher]

Up.for.more

 

[MaoZeDuo]

Up.for.more

depends on wat chiu wanna do with chiur money... with a wholelife plan at some point of time (15-40yrs) chiu get back total premiums paid (upon surrender) which means chiur insurance becomes free (not factoring inflation)... if chiu made a claim chiu get a more substantial sum... chiu wont lugi either way...

take note that only the base plan build cash value (about 2% yield after so many years)... that is to say if chiur base plan ish $100, $100 ish chiur opportunity cost for better alternative investments (ut,etf,stocks,gold,4d,toto,chanelbag etc)...

else... term... u can think of it this way... simplest way of transferring bigger risk for low $X everyday...

so... no right no wrong...