Sunday, August 17, 2008

20 year Term Insurance

I advice consumers to buy a 20 year Term Insurance (or 30 year Decreasing Term insurance).

Some people felt that they need whole life insurance. They must have been "sold" this idea by an insurance agent. Here is the reason why a 20 year Term Insurance is suitable for most people:

http://www.youtube.com/watch?v=sGDgYLCpnDo&feature=related

At present, Decreasing Term insurance is not available in the market. It will be available in 2009.

Here are some benchmark premium rates:

http://www.tankinlian.com/faq/benchmark.html
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3 comments:

Tan Kin Lian said...

Susie Orman talked about "variable life insurance". This is the American name for the "investment-linked policy" sold in Singapore.

She "hates" this product, as it is good for the insurance sales person and bad for the customer.

August 18, 2008 11:38 AM
zhummmeng said...

Yes, local regular ILP is known as variable wholelife in US. Local regular ILPS try to mimic the wholelife and endowment and that is why agents love selling this type of plan because they receive as much commission as wholelife plans.
Imagine the agents receive 50%,25%,25% commission for first 3 years and 5% for the next 6 years, other than the profit of the company.
Where do they come from? You consumers, pay for all of them. So you see how much they affect the return of your policy and why the breakeven point is 15 to 20 years away and not before the 4th year.
Don't be a sucker anymore. Avoid them and wholelife and endowment products.
It is time you seek the real adviser and not insurance agents or agents disguised as consultant or senior consultant or executive financail consultants.They are nothing but salesmen and women who push and peddle products that you don't need.They are wolves in sheep's clothing.

August 18, 2008 3:16 PM
darth said...

Decreasing term insurance is available in the market....just find those mortgage plans that does not require proof of mortgage.

August 22, 2008 12:20 AM

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