Thursday, August 23, 2007

Suitable plans for a young person

Hi Mr Tan,

I have just bought a Limited Premium Living Policy on $100,000 coverage.

I am wondering what other plans in the market I can purchase to provide a more cost-effective coverage on a lower cost. There are so many plans in the market. I am very confused.

Is there a rule of thumb of how much coverage a person should have? Would buying term insurance be more cost-effective when starting out on a career?

MY REPLY:

I hope that this FAQ will help you to make the right decision.
Posted by at

3 comments:

Anonymous said...

I don't know how old are you but if you are above thirty you must be paying a bomb. If you are thirty and above you need more than 100K to cover treatment aND RePLACEMENT OF INCOME.If you have bought an ordinary wholelife living you would have a much bigger coverage with the premium you are paying for the limited premium living plan.They say buying a limited premium plan means paying for a limited coverage.
Take the advice of Mr. Tan. Go for term and invest the difference.
The limited premium is meant for the rich.

August 24, 2007 1:25 AM
Khiat Han Hwee Adrian said...

$100k Whole Life cover is a good choice. Limited option chosen if liquidity (after savings for other purposes) is not a problem for you.

Whole Life Critical Illnesses cover is important under following circumstances.
1) Alternative Medicine
2) Medical Expenses not covered under a typical medical insurance
3) Misc Expenses such as extra transportation and employing a maid, etc

As for the temporary needs. We can look into Term insurances.
A good measure will be 3 to 5 times your annual income. This is the approximately period where one is not able to work during a period of Critical Illnesses.

The above is true only if the person have a comprehensive Medical Insurance such as a Shield Plan with a Rider that covers the deductible and Co-insurance.

August 25, 2007 3:02 PM
Unknown said...

An added advise: before signing, make sure that suitable riders are added to yr policies & reread e fine print. 'Caveat Emptor' aka buyers beware!

August 28, 2007 12:36 PM

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