Buying a decreasing term assurance

Dear Mr Tan,

I read about your suggestion on buying a 20 years decreasing term assurance. I had a few questions on this policy.

1) If there's protection, what are the protection given?Death and TPD only?

The decreasing term insurance covers death and permant total disability.

2) Can I add a Critical illness rider to this assurance?

Currently, this is not available. But the expenses of treating critical illness is covered through a medical insurance plan (eg Incomeshield).

3) If I buy a decreasing term assurance and do not make any claim during the term, do I have to buy another assurance?

At the end of the term, you probably do not need any life insurance as you have adequate savings (hopefully) and your children are grown up.

4) If I want protection (including whole life, TPD and CI) and good return savings at the same time, is it possible?

I suggest that you buy protection through a decreasing term assurance and to save and invest in a large, well diversified, low cost equity fund. You can read more about this concept in my FAQ at www.tankinlian.com/faq

5) Is it wise to keep my current policy?

Generally, it is wise to keep your current policy, as you have already incurred the upfront load.