NTUC Income will offer 2 choice of cover for our Ideal plan (ie an investment linked product or ILP):
- level term
- decreasing term
Both covers will be paid by a level premium, which is lower than the premium under a traditional policy. The sum assured is payable in addition to the savings accumulated in the ILP plan.
For example, a policyholder who saves $2,000 a year may take a level term or decreasing term to cover $50,000 over 20 years.
Under level term, the sum of $50,000 is payable in addtion to the accumulated savings.
Under decreasing term, the sum is reduced by $2,500 each year, and is payable in addition to the accumulated savings.
The cost of the term insurance cover is quite modest. To find out more, visit our office in Bras Basah Road. You can also attend our educational seminar.
Call 6788 3366.
Summary:
ReplyDeleteDecreasing term seems to be a better idea because our life insurance needs (theoretically) decrease as we grow older.
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Details:
Decreasing term seems to me to be a better idea, since our life insurance coverage needs decreases as we grow older, as our children grow up, as our paycheck become bigger, as our home loans get paid up, as we retire and our living expenses become lesser.
Decreasing term would also be cheaper than level term for the same sum assured.
Disclaimer:
Please consult a qualified insurance professional / Financial adviser for proper advice.