Tuesday, April 08, 2008

Term Insurance with Cashback

Hi Mr Tan,
You are an expert in this subject. In the newspaper article it was mentioned by the reporter that with the term insurance covered for $400,000 annual premium of less than a thousand and yet there are cash back guarantee features.

Do you know of any such insurance company. I will be interested to purchase such policy.

You can call the insurance companies listed in this FAQ:http://www.tankinlian.com/faq/termd.html

This FAQ shows the benchmark premium rates.

If you are quoted a premium closed to the benchmark rate, you can accept it.

In most cases it is better to buy a Term insurance without any cash back feature. You pay a lower premium. If you invest the difference separately, you can get a better return compared to the cash back.


Anonymous said...

I agree with Mr. Tan to get term insurance without cashback.

"Term Insurance with Cashback" is just likely another fancy way of packaging a whole life plan with guaranteed surrender values, or a "sub-prime" version of a whole life plan. It is sub-prime because the cashback, after 20 years, already lost value due to inflation. The market is already saturated with all these plans that has "returns/capital protection". The reporter should not mix protection and cashback/returns as it contradicts what she mentioned herself in the news report to separate the two.

I would take any reporter's report with a pinch of salt - afterall they need to write for writing sake, for a living.

In this case, Mr. Tan's views carry much more weight than a reporter's.

Anonymous said...

The cash back incurs additional premium which is not worth while. You can do it yourself by investing the cash back premium into a low or high high risk to earn the premium of your term plan. This is how it is done by the company. The company is AXA.
Use a good adviser to help you.

Anonymous said...

Cash back is almost similar to whole life, maybe you can call it a non par wholelife or a refund of premium term. Whatever name they go by they are all stupid and dumb products which take a lot of your premium which can be used to get you enough protection. As long a product short changes you of protection or return it is dumb product. You are better off buying enough term and invest the rest. This is insurance and not those cashbacks, whole life or endowment insurance agents love to promote to you. For them it is more commission in their pockets and less protection for you. Don't be a sucker.

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