Tuesday, March 13, 2007

Buy a term insurance (including critical illness cover)

Dear Kin Lian,

I have been looking around for critical illness only policies. Most of these are tied-to whole life/etc..

But I found one underwritten by HSBC through Automobile Association, premium is reasonable (but not low), for a 100K PA, premium is $176 and critical illness rider of a $100K is $680, under the age group of 45 to 54 years.

At my age, I don't need whole life insurance, I would rather use the money saved and invest in mutual funds for my retirement.

I wonder if there are any other deals of this nature. By the way, I always enjoy reading your blogs.

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My reply:

You can buy a similar policy from NTUC Income. I will ask X to contact you and give you a quote, for a similar plan. You can see if it offers a better deal than the Automobile Association.

I agree that it is better to buy a term insurance (covering critical illness) rather than a whole life policy.

Tan Kin Lian

1 comment:

  1. Very interesting suggestion. We in Canada are using a similar product that actually has the term life/creditor life/mortgage insurance packaged up with critical Illness coverage and disability income protection. You can pick and take any one of the options and you aren't restricted to a base life or term plan.

    We have even been able to get a "Guaranteed Issue Critical Illness policy " too.

    Most policies that we are using in our site are Guaranteed issue and or with a simple 3-5 questions for health.

    You have to watch out for pre-existing conditions and work around 2 years less a day.

    Sincerely,

    Peter Maccabe
    McGill Financial
    http://www.mcgillfinancial.com

    ReplyDelete