No overlap in coverage

Hi Mr Tan,

After reading your blog I am convinced we should buy term insurance and invest the difference.

At present, I have on insurance policy. I am a SAFRA member. I know that NTUC income underwrites affordable policies for SAFRA members as follows:

* SAFRA Essential Term
* SAFRA Living Care policies.

I am thinking of getting a 100k converage under the Essential Term and another 100k coverage under the Living Care policy.

What do you think of this combination? Would there be a overlap in coverage?

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REPLY:

There is no overlap. It is useful to have cover under both policies. In the event of death, your dependents can claim $200,000 under both policies. For a critical illness, you can claim foro $100,000.

You can buy both policies, if you find the premium to be affordable. If it is expensive, you can insure $50,000 under each policy.