Low Cost Life Insurance Policy

Dear Mr. Tan,
Is it possible to have a low cost life insurance policy, other than term insurance? Can a whole life or endowment policy be designed to be sold directly, without the high charges for commission to be paid to agents?

REPLY
This is possible to design a "no-load" life insurance policy. It will combine the protection and savings and give a good rate of return to the customer. The customer may have to pay a flat fee of say $100 towards the cost of issuing the policy.

The advantage of this "no-load" life insurance policy is that the cash value can be more than 80% of the premiums paid, from the first year onwards. The remaining 20% will be used to pay the premium for the insurance cover, and some expenses.

I hope that some new insurance company will work on this type of policy design. This will offer a good option for the public.