Sunday, January 20, 2008

Migrating to Term insurance

Dear Mr. Tan,

I bought the NTUC I-young policies for my two sons at $100 annual premium for a coverage of $50,000. The policies will lapse upon the age of 29. Should I switch to a Term insurance policy, as mentioned in your blog, for an annual premium of $100 to $300 for a coverage of about $150,000 or stick to I-young? Your learned advice is much appreciated.

REPLY

Both options are suitable. When your sons are ready to buy their own Term insurance, they can buy a Term insurance for about 5 years of their income, and discontinue the iYoung policy. In the meantime, the iYoung will serve them well.
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2 comments:

Anonymous said...

If your sons are still young what they need is a medical insurance; no life insurance or critical illness cover. Don't waste your money.
The insurance salesmen or women will tell you that premium is low when young.
The question is whether they need or not and not whether they are young or old. Think of how much you save.If you buy term how much more it can get ?.
Don't fall for another pitch like 'buy insurance to repay your parents for bringing you up'.
This is another desperate pitch by insurance salesmen. This is not a financial need.
Another popular pitch is 'since you may need it in the future , why not buy now". Are you sure? This is again not a need.
Another one, 'buy your insurability now, you may not be insurable'. Another crap which is not a need again.
From all these you can notice a common thread, to frighten you into buying.
So be careful when you hear the salesmen pitching them.

January 20, 2008 9:39 PM
Anonymous said...

A caveat, I am a 'salesman' described in your post.

I urge any sensible person to think for yourself, other than listening to my side, or this other anonymous guy's comments. Your needs may be in between.

I agree hospitalisation MUST be the first thing to look at. As for other 'sales pitch' mentioned, there is some element of truth to them. Whether or not they are important to you, depends on the person himself.

One thing I feel strongly about, is the insurability of children - this is NOT crap. Just because it did not happen to Anonymous, does not mean it will not happen to you. If so, no one will ever need insurance, even hospital insurance.

November 14, 2016 9:31 AM

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