Friday, January 11, 2008

Term Insurance to age 90

Dear Mr. Tan,

What are your views about buying Term insurance to age 90 and above? The agent said that the premium rate is lower than whole life policy.

REPLY

It is much cheaper to buy Term insurance to age 65 or 70 (rather than age 90). After that age, you do not need any life insurance, as you have retired from work.

If you need life insurance beyond age 70, it is better to buy a whole life insurance (rather than life-time Term insurance), as the whole life policy accumulates cash value. The life-time Term insurance is cheaper as it forfeits the cash value when you terminate the policy. There is a chance that you may terminate it by oversight, and suffer a loss.
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3 comments:

Anonymous said...

You should buy up to 65 years old and with option to renew guaranteed. Likely you may not need it. You mustn't have the 'whole life' mentality. This is insurance agents'
'earning tool'

January 14, 2008 11:16 PM
Anonymous said...

Is the Limited Premium policy then a better choice?

I understand Ntuc Income is removing the 20 year limited premium Living Policy and replace with Vivolife.

The old plan with be withdrawn effective from 1st Feb.

January 22, 2008 8:30 PM
Anonymous said...

This plan is even worse, with a lot of rubbish thrown in to confuse the clients. You may think you are getting more, but nothing is free. So what happened to the plan? It has become diluted. The return is less than half the old plan which was already bad..This is a plan that is nether a term plan nor a non- par plan and a little bit more than a refund plan. This is how it is so diluted that i think you are better off with a term plan.
As usual the ad touts it as living it to the fullest and that is when your money runs out. That is what it means 'to the fullest' Be free means 'when you are disabled',"you are dead", "you are afflicted with dread illness" when money means nothing to you. This is the fullest you can get. It is load of rubbish intended to confuse.

January 23, 2008 10:46 PM

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