Dear Mr Tan,
I am looking for an insurance plan to increase my cover. I was looking for some low-cost insurances (due to my increasing expenses), such as decreasing term insurance.
I bought a whole life policy about 2 years ago, paying almost $160 monthly (for 15 years). I read from your blog that this insurance come with a high cost. What should I do with it? Should I terminate it and take the cash? Or I should hold on to it until the cash value is enough to cover the premiums I paid?
I had now decided to take a decreasing term, personal accident and a medishield plan.
REPLY
Please read the FAQ in my website: www.tankinlian.com/faq
For the whole life policy which has been taken for 2 years, it is probably better to continue with the policy, rather than to terminate it. However, you can ask for the cash value in 5 years time to decide on the best option. Read the FAQ on "existing insurance policy".
I advise you to cancel and take losses. No choice . People don't heed the advice and learn from it.
ReplyDeleteWhat you need is someone real qualified to help you. Don't go near an insurance agent. Isn't that waht happened to you? You were conned into buying. Lucky nothing happened to you in the last 2 years, right? What if some thing happened did you have enough to pass on to your dependents or enough to take care of the critical illness? I bet you , you were sold a limited whole life and that is why you have limited coverage and limited return. With $160 per month you can have a lot a lot of insurance, probably a million in total and NOT just the miserable $50K you were sold,. right. $50k not even enough to send you to heaven let alone to take care of your loved ones. You were short changed because the agent was only interested in the commission and definitely not you or your family's needs.
Please avoid these agents. They only want to sell what benefits them and NOT PLAN for your needs.
Mister, don't DIY. Do you know what you are taking up? What do they do for you?
ReplyDeleteMister ,if you are thinking of addressing your risks, basically there are 3 areas, dependents' income replacement, medical/critical illness and disability income.
I suggest that you engage a qualified adviser to help you.