Dear Mr. Tan
I am a female, age 25. I have received the following quotation:
1. Term insurance for $100,000 up to age 65: premium is $150 a year
2. Living benefit for $50,000 up to age 65: premium is $190 a year.
Question: Is the premium rate acceptable?
Reply:
The premium rates are acceptable. The Term insurance rate is about 15% lower than the indicative rates set out in my webpage: http://www.tankinlian.com/faq/term.html. You are getting a good deal. Congratulations.
Question: Should I spend the $190 for the living benefit, as I am also covered under a Enhanced IncomeShield plan.
Decide on what you feel best. The medical expenses can be covered mostly by the Shield plan. There could be some loss of income, during the period of treatment.
Do you wish to get $50,000 in this event? Of course, the chance of it happening is small, maybe 5% to 10% over the next 30 years. If you are willing to spend $190 to have peace of mind, then you can buy the living benefit.
Conclusion: She decided to spend the $190 to get peace of mind. That is a good decision.
I am glad that more people are heeding your advice to use term insurance for risk management. It is smartest and cost efficient.
ReplyDeleteFor those who are hard pressed financially, especailly the young family and they require high insurance coverage i recommend YRT or yearly renewal term.Of course the premium goes up but only a bit each year, eg $.50 to $1. You can quit anytime without much loss (the premium is very close to mortality charge).
If she is an Union member, she can consider the Luv plan.
ReplyDeleteFor a $100,000 term insurance cover up to age 70, the premium is $108.
For a $50,000 living benefit up to age 70, the premium is $120.
She will also be able to get up to 10% loyalty discount if she stays with the plan long enough.
This is a very special rate provided to NTUC members only.
That's good provided that her life style is simple and her needs are basic.
ReplyDeleteSingapore can be a good place to live in if you keep you lifestyle simple - like using public transport, using mobile phones sold in 7-11 (LG phones for less than $80 without contract), cooking in, wearing casio watches (costing $50 or less), and not living in hype-up condos but instead living in decent 3-4 room flats.
What is the current market premium for a 45 years old non-smoking male to buy a term for 20 years?
ReplyDeleteThanks.