Term till 99

[chopra]

Yes. I am doing the same thing with yours. My data till 65 years of age are correct. But >65 onwards are wrong.

I will correct my table.

Interestingly, you have taken 5.07% pa ?!

But still at lower opportunity cost, the FV of premiums saved are unlikely to exceed the 500k payout.

yup, ~5.07% is the breakeven point ma, for a 30yr non smoker.

 

[archcherub]

71 Jan-84 1465 501337.96

Sidenote1: This is an interesting perspective of reasoning out WHY TO BUY TERM. All along, my reason is simple - to insure against loss of income. This can be a good reason to buy term. I'm not against it.
At most, use a knife and stab in your chest at 100yo, if you are so long-lived, hor?

lol. at age 100 and 1 day older, i dont know whether to be sad or happy... LOL

 

[archcherub]

yup, ~5.07% is the breakeven point ma, for a 30yr non smoker.

awww... so someone who has a confident of consistent higher return than 5.07% should choose term till 65.

someone who can only get a return of less than 5.07% shld aim for term 100.

ok that is a logical and calculated risk then.

 

[Lewis.T]

awww... so someone who has a confident of consistent higher return than 5.07% should choose term till 65.

someone who can only get a return of less than 5.07% shld aim for term 100.

ok that is a logical and calculated risk then.

Not quite. You are assuming you'll live till 100. In that sense, 5.07% is the break even point. Anything past a 100 there's no contest, because the plan has stopped.

Chances are more likely that you'll live to 80-85.

 

[Mecisteus]

yup, ~5.07% is the breakeven point ma, for a 30yr non smoker.

firstly, you are not using realistic life expectancy. maybe 0.0001% will live past 95.

secondly, this is part of legacy planning. meaning you plan to leave $$$ behind for your heirs. so your opportunity cost should be a lower rate. nobody will try to invest the $$$ in high returns investment.

 

[sweetyethandsome]

forgot to mention, last time auto covered under term plan under CPF for 46k, haha, so no need to buy more term plan lor.
Understand the garment stop DPS at age 60, why are u buying till 99? I'm was thinking of stopping to save more than $200 pa in medisave, now I know it autostop at 60, just leave it.

dun forget, u have to think of affordability when u retire, can u afford to continue to pay till 99, when after retire, u would want money for comfortable retirement. dun forget the basic purpose of insurance. dun forget when u retire, u will have money in CPF, insurance, investments, property, etc to pass on.

thats true for DPS to stop at 60 age.. in a grand scheme of things, u really need life insurance only till your retirement. anything extra is just a calculated risk/reward thingy...

 

[kareema]

Thanks for the sharing fellow friends! Can I check in the market which company has the lowest premiums for 1M cover till 99?

Apart from Sing Life and FWD of course.

 

[henrylbh]

So buy term good or not?
After the discussion, seems like it's a waste of money is it?

Just like 4Ds, it is definitely a waste of money ...... if nothing happens

But may be good till one is about 60s when one can be financially steady.