Universal Life

[happiness05]

Hi guys. my banker proposed universal life and i just wanna check with the general public on your view in this kind of plan.

the cash layout is abit high but the benefit seems sick. covers any form of death.

let me know if you actually brought one too.

 

[tangent314]

UL is just a variation of wholelife plans, and in this forum we generally discourage the purchase of wholelife plans and recommend buying term life insurance and DIY investing the difference in ETFs.

 

[JuniorLion]

Hi guys. my banker proposed universal life and i just wanna check with the general public on your view in this kind of plan.

the cash layout is abit high but the benefit seems sick. covers any form of death.

let me know if you actually brought one too.

Erm, all term/life insurance covers any form of death.

 

[BBCWatcher]

Erm, all term/life insurance covers any form of death.

Well, term life insurance doesn't cover non-premature death. But that's the point, because we're all going to die eventually.

I haven't encountered any life insurance insurance policies that don't exclude suicides and some other standard, "exotic" causes of death. Also, if your named beneficiary murders you, life insurance will still pay out but not to your named beneficiary.

Life insurance does cover reincarnation, because the life insurance company never finds out about that.

 

[limster]

I haven't encountered any life insurance insurance policies that don't exclude suicides

Seems like you have only encountered USA policies. Looks like another difference between Singapore and USA life insurance policies. no exclusion after 1 year is standard for income

 

[xtwis7]

Congrats to you for even making it to UL eligibility.

It’s a legacy jumbo life plan that will serve your kids/grandkids quite well if the money is put to good use.

Did your banker propose 2 options - with and without financing? The primary area of concern for ULs is the guaranteed crediting rate.

Hi guys. my banker proposed universal life and i just wanna check with the general public on your view in this kind of plan.

the cash layout is abit high but the benefit seems sick. covers any form of death.

let me know if you actually brought one too.

 

[BBCWatcher]

no exclusion after 1 year is standard for income

That’s a suicide exclusion. It happens to be a time limited one, but I simply didn’t go into that level of detail.

By the way, even with this term limited exclusion the life insurer is still within its rights to deny the claim if the post-exclusion term suicide is in any way attributable to a pre-existing condition that was asked about and not disclosed, such as clinical depression. Or if a pre-existing condition such as depression was declared and the insurer accepted the policy subject to a special condition.

Group life insurance is different and typically has fewer exclusions.

 

[$ingaporean]

Do rich people requires ul since they have lots of assets already?

 

[tangent314]

Possible, with a high maintenance non-working spouse. And maybe spoilt brats for kids.

 

[yoongf]

Does the thought of being... worth more dead than alive scares anyone?

 

[JuniorLion]

Does the thought of being... worth more dead than alive scares anyone?

Not at all.

 

[happiness05]

My banker didn't quote me financing as i have the cash outlay.

Yeah. i saw that. the crediting rate if performed at it's worst will eventually reaches 0. Anyone can explain this to me?

 

[Sinkie]

My banker didn't quote me financing as i have the cash outlay.

Yeah. i saw that. the crediting rate if performed at it's worst will eventually reaches 0. Anyone can explain this to me?

I was quoted financing 2.1% pa, with yearly return of 3-4%, and by 8th years breakeven, and covered $1m death coverage

 

[boredboiboi]

I was quoted financing 2.1% pa, with yearly return of 3-4%, and by 8th years breakeven, and covered $1m death coverage

Standard way of selling UL by the bank i would say

 

[chrisloh65]

I suppose the yearly return is not guaranteed? And the financing interest rate can be very volatile and runs the risk of outrunning the pantry return of 3-4% (which is not guaranteed anyway)?
Beware that this is a trap to trap you in for 20 years or more. I had been approached for UL before (several times by different banks and insurance companies) but decided that it is not worth it.

I was quoted financing 2.1% pa, with yearly return of 3-4%, and by 8th years breakeven, and covered $1m death coverage

 

[moejoseph]

I suppose the yearly return is not guaranteed? And the financing interest rate can be very volatile and runs the risk of outrunning the pantry return of 3-4% (which is not guaranteed anyway)?
Beware that this is a trap to trap you in for 20 years or more. I had been approached for UL before (several times by different banks and insurance companies) but decided that it is not worth it.

I will say a term plan + any kind of investment will be able to reap the same results as a UL.

Some UL allows u to use your assets as collaterals though, so this is where it appeals to some people who do not want to fork out cash or do premium financing

 

[tractor13]

Hi,

You can take a look at https://www.policypal.com/whole-life-insurance.

They have some pretty good life insurance that is worth buying.

It is worth the read to know more about your life insurance options.

 

[xtwis7]

With rates hovering just above 1% now, I’m not surprised banks are really whacking their clients hard by getting them to finance. Though guaranteed rates around 3.5-3.75% have come down, it’s still a pretty good offer.

My advice to those taking financing is that you should always have liquidity to standby should rates go up a lot.

 

[drowningfish101]

Hi,

You can take a look at https://www.policypal.com/whole-life-insurance.

They have some pretty good life insurance that is worth buying.

It is worth the read to know more about your life insurance options.

OMG thank you so much! As a student trying to learn more about the finance side of things, they do have things; such as what is a universal life insurance and a DPS, which greatly helped me better learn.

Ps. Here are some of the pages I've read if you're wondering what I've been blabbering aboout.
https://www.policypal.com/blog/insurance/universal-life-insurance/
https://www.policypal.com/blog/insurance/dependants-protection-scheme/

 

[Goesaround]

OMG thank you so much! As a student trying to learn more about the finance side of things, they do have things; such as what is a universal life insurance and a DPS, which greatly helped me better learn.

Ps. Here are some of the pages I've read if you're wondering what I've been blabbering aboout.
https://www.policypal.com/blog/insurance/universal-life-insurance/
https://www.policypal.com/blog/insurance/dependants-protection-scheme/

All the accounts same person. Ownself replying ownself. Policypal is just a leads generation platform for their partner advisers when my friends tell me.