Which insurance is more cost efficient?

[GhostOsiris]

I was recently intro-ed to GE insurance plan(option 1). But i already have a pru one(option 2). But i m not too sure if i should move. Lets assume there is no penalty to switching policy.

Any experts advice?

 

[Perisher]

The 2nd option seems to calculate the term to way beyond age 65 resulting in the huge end premium?

 

[akwl88]

Lol annual premiums 6k

I like to be the agent who can sell u the proposed plans

 

[limster]

Lol annual premiums 6k

I like to be the agent who can sell u the proposed plans

Look at the proposed policy. It says that annual premium is $6682.98
It also says that the period is 23 years

Maybe my maths no good but $6682.98 x 23 = $153,708.54 and the projected surrender value is only $147,186.

After 23 years your policy loses money?

No wonder insurance companies reward such agents with first class air tickets to Europe.

 

[havetheveryfun]

Look at the proposed policy. It says that annual premium is $6682.98
It also says that the period is 23 years

Maybe my maths no good but $6682.98 x 23 = $153,708.54 and the projected surrender value is only $147,186.

After 23 years your policy loses money?

No wonder insurance companies reward such agents with first class air tickets to Europe.

but they would argue that for the term plan, you pay $4229.13 x 23 = $97k+ and get back $0.

His term plan seems a bit expensive though , the premiums usually should cost only around 50% of what you pay for a WL for the same amount of coverage ?

 

[akwl88]

Look at the proposed policy. It says that annual premium is $6682.98
It also says that the period is 23 years

Maybe my maths no good but $6682.98 x 23 = $153,708.54 and the projected surrender value is only $147,186.

After 23 years your policy loses money?

No wonder insurance companies reward such agents with first class air tickets to Europe.

They deserve to be rewarded.....

For milking ts for 23 yrs

 

[blurpandasg2014]

The term plan is 70yrs. by then, do u think u would still be ard? (just stating the facts Hehe). So if u make claim, u already huat over life plan

 

[parallelyy]

The 2nd option seems to calculate the term to way beyond age 65 resulting in the huge end premium?

It'll be more comparable to the whole life ma. apple to apple comparison

 

[parallelyy]

Look at the proposed policy. It says that annual premium is $6682.98
It also says that the period is 23 years

Maybe my maths no good but $6682.98 x 23 = $153,708.54 and the projected surrender value is only $147,186.

After 23 years your policy loses money?

No wonder insurance companies reward such agents with first class air tickets to Europe.

Actually, I believe they included the premiums for the integrated shield plan into the $6k. As the ISP do not contribute to any cash value, we should take it out of from our calculation.

Beside, premiums for the ISP premiums will increase as we age.

 

[limster]

They deserve to be rewarded.....

For milking ts for 23 yrs

I plan to buy more PRU shares, but the prices has really shot up since Brexit. Still waiting for pullback.

 

[parallelyy]

but they would argue that for the term plan, you pay $4229.13 x 23 = $97k+ and get back $0.

His term plan seems a bit expensive though , the premiums usually should cost only around 50% of what you pay for a WL for the same amount of coverage ?

The coverage amount is different and the term coverage is also for 70 years, so insurer charge higher as there is a higher probability in claim

 

[parallelyy]

I was recently intro-ed to GE insurance plan(option 1). But i already have a pru one(option 2). But i m not too sure if i should move. Lets assume there is no penalty to switching policy.

Any experts advice?

Are you already in option 2? If you are, then there isn't a reason for you to switch unless you don't wish to continue paying beyond the next 20 years.

If you are currently still deciding between the 2 options, what you can consider is if you can make use of the difference in premiums between the 2 life plans you save, (~$5k & ~$3k) which is about $2k, to invest and get higher returns or even help to pay off the term in the future. If that is so, option 2 term plan will be better.

 

[oceanicmanta]

Actually, I believe they included the premiums for the integrated shield plan into the $6k. As the ISP do not contribute to any cash value, we should take it out of from our calculation.

Beside, premiums for the ISP premiums will increase as we age.

Agree.

To be cost effective, Term shld just be to cover Death & TPD.

Shld not bundle in CI, Hospitalisation, Accident, Disability etc.

Besides, in the pic, why is Hospitalisation for Term more expensive than for Whole Life option ?

Really cannot trust anything insurance sales man show.

 

[unhinged_loon]

I was recently intro-ed to GE insurance plan(option 1). But i already have a pru one(option 2). But i m not too sure if i should move. Lets assume there is no penalty to switching policy.

Any experts advice?

Consider these points:

1. How much coverage do you need?

2. Apples to apples comparisons please. The two have different death coverage.

3. Take the difference in premium (for the same coverage), and calculate how much you can get if you can get market returns from the premiums paid over the time period.

Come on, do some math.

 

[GhostOsiris]

Look at the proposed policy. It says that annual premium is $6682.98
It also says that the period is 23 years

Maybe my maths no good but $6682.98 x 23 = $153,708.54 and the projected surrender value is only $147,186.

After 23 years your policy loses money?

No wonder insurance companies reward such agents with first class air tickets to Europe.

6682 X 20 = 133640


147,186 - 133640 = 13546

So i throw the question back to you. Policy earn money, will u still buy and why?

 

[kannis_ng]

Look at the proposed policy. It says that annual premium is $6682.98
It also says that the period is 23 years

Maybe my maths no good but $6682.98 x 23 = $153,708.54 and the projected surrender value is only $147,186.

After 23 years your policy loses money?

No wonder insurance companies reward such agents with first class air tickets to Europe.

Li is shing

 

[akwl88]

Ts current plans are also expensive

Agent go propose even more expensive plans

Agent for u, with u, by you!

Huat ah!!!!*

*not ts but the agent

 

[GhostOsiris]

Consider these points:

1. How much coverage do you need?

2. Apples to apples comparisons please. The two have different death coverage.

3. Take the difference in premium (for the same coverage), and calculate how much you can get if you can get market returns from the premiums paid over the time period.

Come on, do some math.

TS here

Option 1(Proposed, Great Eastern, unknown name)
6.1k x 20 = 122k

Option 2 (Current, PrutermVantage)
3.7k x 70 = 217k

aginst my current option2, its a difference is 95k for 200k less death coverage, 350k more CI coverage. Option 1 has maturity of 100k at 75yo, does that effectively cost the whole plan 22k? Should it be calculated this way?

What is market returns? And why do ppl say policy lose money to agent's expense when its insurance and not ILP or endowment?

 

[GhostOsiris]

Look at the proposed policy. It says that annual premium is $6682.98
It also says that the period is 23 years

Maybe my maths no good but $6682.98 x 23 = $153,708.54 and the projected surrender value is only $147,186.

After 23 years your policy loses money?

No wonder insurance companies reward such agents with first class air tickets to Europe.

Its (3k + 1k x 20yr) + 500 x 23 yr = 80k + 11.5k
= 95k?

 

[GhostOsiris]

but they would argue that for the term plan, you pay $4229.13 x 23 = $97k+ and get back $0.

His term plan seems a bit expensive though , the premiums usually should cost only around 50% of what you pay for a WL for the same amount of coverage ?

do educate me pls, how izit expensive? what do u suggest then?