Save for your future needs

Dear Mr Tan

I am 26 years old and getting a take home pay of $2,200.

I have bought a NTUC Pioneer Policy and two limited payment life policies from two other companies. The total sum assured is $120k from the above three policies. They also cover critical illnesses. The total premiums from the 3 policies are about $260 monthly. I already bought the NTUC IncomeShield enhanced advantage with rider.

I am considering to increase my protection by taking two additional plans:

* Term insurance which covers critical illness for a sum assured of $100k at premiums of $40/mth and

* Personal accident plan with sum assured of $100k at $10/mth.

Hope you can advice on my views.

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My reply:

You already have adequate life insurance coverage.

I suggest that you should make additional savings for your future needs. Perhaps you can put aside $100 a month on a regular premium investment linked policy or a unit trust.

Select a plan with the lowest upfront load. It can be from NTUC Income or from a unit trust.

You can read my investment tips at FAQ