Friday, February 23, 2007

A whole life policy pegged to a child's age

Dear Mr Tan

I hope this email finds you well. I have always been impressed with your personal commitment and dedication towards your career. Cheers to a job well done !!

I am a female Singaporean who has a couple of policies under the NTUC arm.

I have been trying to find out over the last 4 years, but without any success, from your agents as to whether there are any whole life policy for my child, on condition that they are pegged to my child's age at the time of entering into the insurance contract.

I bought a policy for my first child when she was born, but pegged to my age. At that point in time, we didn't have much knowledge about insurance. My 2nd child arrived recently.

With time and wisdom, we now realise that it seriously doesn't make any sense to purchase a policy for a young child pegged to a parent's age.

LH

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Dear LH

You can buy a whole life policy pegged to the age of your child. The policy can be in your name as the policyholder, with your child as the life assured. You can transfer the ownership of the policy to your child at any time, but you will only want to do so after your child has started to work.

Tan Kin Lian

1 comment:

. said...

There are limited payment premium wholelife policy available now.

You can take a wholelife Limited Payment Living Policy on the child, with premium payable for 20 years, and let the insurer carry the baby after 20 years for the wholelife.

Yes, premium payable for 20 years, and coverage continues for whole life there after.

A waiver of premium on the payor ( parent's life ) can be added for the 20 years when premium is paid by parent. So when lost of life happen during the 20 years, the premium is paid for and the child's policy will continue wholelife without further premium commitment.

- Thomas Phua

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