Dear Mr. Tan,
I have read your blog and website. Your articles are really helpful to individual investors at the grassroots.
I have term life and personal accident policy. You mentioned that it's reasonable to have sum assumed 5 to 10 times of annual income. Does this ceiling apply to life and personal accident respectively or separately? Should the aggregate sum assumed be taken to make up the ceiling?
REPLY
If you can afford the premium, you should buy term insurance for the target sum of 5 to 10 years of salary. Term insurance covers death from accidents and illness.
If you with to reduce the cost, you can insure the target sum partly by term insurance and partly by accident.
You should get the quotation of the cost and make your decision based on the figures.
Everyone's needs is different. Is always better to find a trustworthy advisor to understand your existing plans and your current needs. Like buying a clothing, you can't send someone to buy on your behalf.
ReplyDelete5 to 10 times of annual income is considered a wide range. What are the unexpected events that you are planning to protect? How much protection per month do you really need? How long do you wish to be protected? These are questions requiring your answers too.
I think that choosing personal accident insurance is a good idea. Crazy story, when are people going to learn? My friend has got a black book in her purse full of numbers of Los Angeles personal injury attorneys, just waiting for something to happen.
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