My insurance and investments

Mr Tan,

What are the types of insurance do you invests in?

My reply:

When my children were young, I took up term and life insurance. The sum assured is 5 times his annual salary. I took up a living policy for his wife, and also for my 3 children. I had comprehensive coverage for accident, medical and education.

I invest in investment-linked products for my retirement. My investments are in large, well-diversified and in low-cost plans. The returns for the past few years, is more than 10 per cent per annum.

For the next 10 to 20 years, I expect the return to be around 5 to 6 per cent. I think it is a suitable investment for everyone.