Dear Mr Tan,
I was reviewing the NTUC Luv plan which was launched recently. This looks affordable and comprehensive considering it covers life, TPD and critical illness - which will all expire at 70.
But looking at their monthly premium at age 60 and beyond, it make me wonder if this policy is still attractive since many in that age bracket may not be able to afford $300 a month or morre premium. Pls advice.
REPLY:
I am not familiar with this new product, which was introduced after I have left NTUC Income.
I suggest that you should talk to an insurance adviser (whom you can trust to give impartial advice) or call their business center?
Don't buy just because they are cheap or affordable. Check whether you need additional coverage or if there is a shortfall currently. Over insured is a waste of money and under insured is disastrous. That is the problem with Singaporeans, they buy a lot of rubbish when there is a great Singapore sale. This applies to insurance too. Don't be lured by promotions.Seek a qualified adviser to see if you need them.
ReplyDeleteIn financial planning there is no such thing as the more you have the better or something is better than nothing. This is insurance agents' ploy of getting you to buy something. So don't fall for the promotion.
Luv plan is a group insurance exclusively for Union Members.
ReplyDeleteBeing a union member, you are already paying an extra $108/yr.
If you are union member and is actively making use of its benefit, I'll strongly recommend you to take up the plan for the extra cover.
However, it should not be viewed as your principle coverage because it is still a group insurance. It can be removed or there can be a major change in premium years down the road.
Lastly, no one can guarantee that you will remain a union member forever. If you forget to pay the membership fee and membership lapsed, you may be left with no cover.
Becoming a union member just to get
ReplyDeletethis luv insurance? My advice is no.
Unless you have met all areas of your personal financial need, or you are very rich, then go and splurge on it.
And as for an extra cover over what you have already enough, don't waste your money. Find out where you have a gap; put the money into the gap and plug it up.Never buy because it is cheap. Buy because you need it.