Sunday, February 24, 2008

Paying benefits by installments

Dear Mr. Tan,
I am covered under term life, whole life, living and endowment with NTUC & Great Eastern. I intend to arrange the payout to beneficiaries in form of monthly instalments similar to annuity instead of lump sum in event of death. However, both insurance companies rejected such arrangement without giving any reason.

My wife is not savvy in financial management and investment. I prefer to provide them with a steady regular incomes in event of claim. NTUC suggested that claimant buy to a new annuity with the payout. I am not sure whether my wife will take my advice or not. This is within my control. Please advise me what feasible actions can take.

REPLY

You have made a sensible request. More people should be thinking like you. I am quite sad that the two insurance companies are not able to meet your request.

The next best thing is for you to write a request to be lodged with the insurance companies, and to educate your wife about this arrangement. When the time comes, your wife may authorise the insurance company to act accordingly.

If I can think of any better idea later, I shall tell you later.
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1 comment:

Anonymous said...

There is a rider called Income Benefit Rider that pays a monthly benefit upon death of the life insured. It can be added under the Family Insurance Plan by Income. This may be able to suit your needs. Alternatively, consider Enhanced Income which pays on critical illness as well. As with all term products, the premium is low thus low commissions for the insurance agent.

blackbox

February 24, 2008 6:58 PM

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