Dear Mr. Tan,
I am a 27 years old. I have bought life insurance with insurred sum of $30,000 which cost $50 premium a month.
I realised the insurred amount is far from sufficient for me especially I have parents in their fifties who will be retire soon, with insufficient savings for their retirement.
After reading from your website, I realised that the decreasing term insurance is affordable for me to provide a monthly income of $3,000 to my parents till they're 80yrs old, should anything happen to me.
However, when I have tried contacting Aviva and Ntuc Income on decreasing term insurance for insured amount for $900,000. They told me they do not offer decreasing term insurance. Do you have any idea which insurance companies still offer this? I know they do offer this level term insurance?
REPLY
You have to buy a level Term for the time being. Perhaps you can insure for 5 to 10 years.
If you wait a few months, I expect a new life insurance company to offer the decreasing Term plan.
This FAQ shows you the cost of providing a monthly income of $3,000 under a Family Income benefit:
http://www.tankinlian.com/faq/benchmark.html
Now you know your insurance agent didn't bother to tell or help with planning your risk needs. If he or she did ,they wouldn't be able to sell you wholelife which carried very high commission becuase he or she would find embarrassing or justification to tell you needed so much but recommended so little. And the little insurance he or she sold had more commission than if they had recommended you a big term . This was the conflict of interest.
ReplyDeleteSo as usual the question to ask is whether insurance agents are interested in your interest or thiers. Let me make this statement and it stands to be challenged.
"Those insurance agents who sell you whole life plans never have your interest at heart."
You can buy mortgage protection insurance with 0% interest rates. It works like a decreasing term insurance.
ReplyDeleteThe best part is that you do not have to pay any more premiums in the last few years of the term policies.
It fact I think a decreasing term insurance is the best education policy you can give to your children.
Say for example if you intend to save up $100K for your children education. You have a decreasing term insurance for that amount, which reduces accordingly when your investments are on track. If one die early before the target savings is achieved, your kid got the payout. Better than any education policy in town!
I am surprised that you were told that NTUC couldn't offer you decreasing term. They do offer this product.It wasn't the company but the agent, right? See, agents are not interested to sell term and knowing that this is the amount you need. But they prefer to sell you whole life even you are under insured. They are more interested in high commission products otherwise how to achieve mdrt? Now you know what kind of agents who achieved mdrt.
ReplyDelete