Wednesday, May 09, 2007

Do university students need life insurance?

I posted the view of an author of an insurance book. He said that insurance agents market the wrong products to university students, using high pressure tactics. This gave a bad impression to the graduates about the life insurance industry.

There is a debate in my blog whether university students need life insurance. Some argued that the students need life insurance to cover their study loans and the amount invested by their parents in their education.

I agree with this view. The correct product is a term insurance product.

There is no need for the student to take an expensive life insurance policy (ie whole life policy) when they are still studying. They can buy the plan later, when they start to earn a regular income.

Actually, a more appropriate policy is a flexible investment linked plan, combined with a decreasing term assurance.


Thomas Phua's Blog said...

As a parent of a University going child, and two teens, should any unforseen situation happen to them, example lost of live, it has no impact on me as a parent.

But if it is not lost of live, but dread disease or needing medical attention, then I need to be prepared to should the responsibility as a parent.

I took Incomeshield for all of them, Living Policy , which I will turn over to them to takeover when they are adult.

I built up my savings and do other endowment plans to cater to their education needs.

Once all these are done, I wish they finish their education and be responsible citizen, taking care of themselves and future family.

I am of the view the University students may not need insurance, but parents insure them incase, financial burden of such unforseen matter happens.

Now there is a new plan , Limited Payment Living Policy. This is a good plan to consider as premium is payable for 20 years. Imaging taking up a wholelife Living Policy for the child, once the child is adult, the insurer has to carry the baby wholelife. Yes, no more premium need to be paid and coverage continues the wholelife.

- Thomas Phua

Thomas Phua's Blog said...

Most of the youngsters today are well provided for, thus most do not need insurance.

There are also some who are financially quite strapped.

I believe many even take on part time jobs to fund their educational fee or takes study loan.

This are youth who will go through life, more challenged and appreciate life better than those who are born with silver spoon.

Some of them, insure themselves as soon as they are able to, because they feel that they are responsible to take care of their parents after they graduate or is able to cover themselves,incase any unforseen situation happen they want their parents taken care of.

This category draws my respect and I have met some of them along the time.

- Thomas Phua

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