Tan Kin Lian's Blog: Travel and term insurance

Monday, May 12, 2008

Travel and term insurance

Dear Mr Tan
Even though you have retired, you still make yourself available for help for those who need you.

For my family year end vacation, I usually purchase travel insurance from either AIA or NTUC. Can I buy both? Is it an offence to do so?

When someone buy life or term insurance for many years, will the insurance firm pay when he is sentenced to death for capital offences?

Many American insurance websites offer cheap term life from reliable insurance firms. Can Singaporeans purchase these insurance? Is there any laws prohibiting us to buy from them?

REPLY
There is no point to buy travel insurance from two insurance companies. You can only claim for the actual amount of the loss. You cannot claim two times, even though you pay two premiums for travel insurance.

A term or life insurance policy pays for death from any reason, except for suicide in the first year. The family can claim for the death benefit on a term or life insurance policy for a person who is sentenced to death for capital punishment.

You can buy term insurance from the American website. Be sure that you have checked the reliability of the insurance firm. However, you may find some difficulty in making a claim due to difference in law. It is better to buy term insurance from a Singapore insurance company, even if the premium is slightly higher.

9 comments:

Raymond T said...: Hi Mr Tan, can still buy term from NTUC Income? :); May 13, 2008 6:12 PM
Victor Foo said...: I have two i-Term from NTUC Income Insurance for over one year. You could receive online quotation and even apply online.; May 13, 2008 11:41 PM
Val said...: Dear Mr Tan,

I am considering buying a Term Policy with an option to convert to Whole Life at a future date. As future is a long time can U adv if the Insurance company have a right to terminate the policy say after a 10-15 years or when they find its a bad for them.

I ask this Q because I had a good Hospitalisation Plan (full refund if no claim for 10-years) before that got prematurely terminated after 7-years of no-claim.; May 14, 2008 10:16 AM
tatos@irc.rizon.net said...: As a general guide, if you are buying Term Policy with convert option. The earlier you convert, the cheaper is the premium.

So why you want a term policy in the first place?

- You want to try out?
- Sceptical?
- Cost issues?
- Just want to boost your current plan?
- etc?

Actually, its better for you to get a quality insurance 'advisor' to talk about it in detail, than just asking if whether Term with convertability is better than just buying a whole life plan, or otherwise.; May 14, 2008 11:23 AM
How times flies... said...: Yes, Mr Tan is right, should only buy from one travel insurer. In the contract, there is also mention of not being able to claim from mltiple insurers.
Regarding the Term insurance, if a claim were submitted if a person is sentenced to death, the application form will be scrutinised to see if the application is fraudulent. For example, if a person is trafficking drugs under the guise of a freelance teacher, the policy may be void, and hence no payment. If if there is no fraud during application, then policy will be paid for such deaths.; May 14, 2008 1:58 PM
Unknown said...: Mr Tan wrote:

A term or life insurance policy pays for death from any reason, except for suicide in the first year. The family can claim for the death benefit on a term or life insurance policy for a person who is sentenced to death for capital punishment.

I dont think this is necessarily so and may give your readers an incorrect impression
See http://www.singaporelaw.sg/content/InsuranceLaw.html#section6

" Illegal Performance

24.6.4 An insurance contract that is legal at its inception may be affected by illegality if it is used by one of the parties for the furtherance of an illegal purpose. For example, a claim under an insurance contract is repugnant to public policy if the loss was caused by the insured’s criminal conduct. The courts will not assist an insured in his illegal conduct and will not allow him to benefit from his crime by claiming an indemnity from his insurer."

If the insured's family is claiming thru the insured s his estate, then, the insurer hs a good defence to the claim.; May 14, 2008 8:07 PM
Raymond T said...: Buy Term and INVEST the difference! :D; May 14, 2008 10:16 PM
tatos@irc.rizon.net said...: Buy Term and INVEST the difference! :D

- Thats only ideal if you, are

1) Young :) so really cheap premium.

2) Intent to convert to whole life plan early in life~ So you still get cheap premium for whole life~

3) Just want something to boost your seperate disability/health plans.

4) Or etc.. Like you intent to spend your next 10 years of your life climbing some of the tallest mountains hahaha....; May 15, 2008 3:09 PM
Val said...: Many tks all;

I am considering buying Term with convert option for cost reason. I am now 20years old and the cost of $100K term policy is more affordable than whole-life. Assuming my life is longer than 50-years, I will convert it then so that any pre-existing illness at that age will not be a problem or to avoid any heavy loading.; May 16, 2008 4:23 PM