Mr. Tan,
For a Term insurance, the yield is 0%. What is the benchmark to decide on a "good value" policy?
REPLY:
You should compare the cost of the Term insuance policy insuring the same amount and period. You can ask for a quotation of the premium by calling the insurance companies listed in this FAQ:
http://www.tankinlian.com/faq/termd.html
Mr. Tan,
I agree with you that Term insurance gives good value. But are you being responsible in asking people to buy Term insurance? What if the term matures and the policyholder still needs coverage? He may not be able to get the coverage because of poor health. Even if he is able to get coverage it will come at a higher cost.
REPLY
You can buy a Term insurance to cover 30 years and pay a level premium. Most people need life insurance for 30 years to cover their working life. They do not need any more life insurance after they have accumulated sufficient savings and their children have grown up. It is more important for you to have adequate insurance in the earlier years, when your children are still young. This is only possible through Term insurance. Read this FAQ:
http://www.tankinlian.com/faq/term.html
Mr. Tan is absolutely right to say that full and adequate coverage " is only possible through term insurance".
ReplyDeleteOnly insurance salesmen disagree becuase there is nothing to sell if everyone has full coverage.
You often hear insurance salesmen say
'if you can't buy all buy another time when you have the budget". But what if you die suddenly? "That is too bad.Who asks you to have no money".
To the insurance salesmen, you can stagger your purchase becuase they can continue to sell you whole life and make money. "Why sell one short? Your dependents not enough their business, after all you die you don't know anymore, why care?".
Friends, term is cheapest and the best to address the needs of the poor.
Rich don't need insurance. Now that the estate duty has been abolished, whole life is useless to the rich also.
The abolition of estate duty will put the last nail on the coffin of the whole life insurance plan. There is completely no reason at all now to use whole life for fear of the uncertainty of death and to be used as an estate planning vehicle.
ReplyDeleteOther use such as legacy may not be useful for the ordinary folks.There are other means to effect this goal.
:Zhumeng
Its good to get term insurances. No doubt about it.
ReplyDeleteIt will not be good if the same person do not invest or save properly.
Unless you are absolutely sure that you know how to plan, then go ahead and DIY everything yourself. If not, look for a trustworthy advisor.
Adrian Khiat
http://akhiat.blogspot.com
No one is suggesting that the customers doing it alone . The customers must have an adviser coming alongside to help and to see the customers accomplish thier goals. And not having a thief alongside to plunder them. That is exactly what is happening all this time.Have you heard of insurance agents successfully planned for thier customers? Coming alongside the customers means to the the insurance salesmen a ready customer to buy and unload thier rubbish products whenever new products are luanched.
ReplyDeleteDoing it alone or DIY has an advantage . You don't end up with what I said about having an insurance salesman as "adviser".