You have mentioned it is better to buy a Whole Life policy at a later stage. I have bought a Whole Life policy for my child which I pay premium for 20 yrs and there after the policy continue to run. Effectively my child will have a Whole Life cover for free when he is 20 yrs old. Make sense?
axt, you stop paying the premium but NOT for free after the 20 years. Did your agent tell you that it is free after 20 years? Sorry, to tell you the truth which your agent didn't want to tell you or he or she told a different a story, the cash value is paying for it and it is paying it on an increasing basis. Don't be too happy.. your cash value is affected by this and the return will be a miserable 2% or less even after 30/ 40 years. You see, Mr axt, your trusted insurance agent or whatever his title is, suppressed this information , right? and maybe many other information. The premium you pay may get a bigger coverage.Cover for life is NOT key but adequacy is . Also don't be too sure about coverage for life. If there should be a financial crisis in the future and there is a need to dip into the cash value that will the beginning of the end of the policy. Also if you should have a crisis because you are inadequately covered your child policy will also go in smoke.Planning is the key to financial freedom and just buy insurance on an isolated basis from a salesman is doomed from the start.Get a review by FISCA.
Hi Mr Tan,
ReplyDeleteYou have mentioned alot about low cost investment fund.
Is it possible to give examples and the criteria of low cost investment fund ?
Thanks.
Reply to 3;43 pm
ReplyDeleteI usually recommend the STI ETF. I hope that low cost unit trusts or indexed funds will be available in the future
Hi Mr Tan
ReplyDeleteI have read some on share builder plan STI ETF. and states that it require consistent put in of funds to average out. and some risk involve.
to hosingping
ReplyDeleteto reduce your investment risk, you have to invest regularly for the long term in a well diversified fund. REad my book.
Hello Mr. Tan,
ReplyDeleteYou have mentioned it is better to buy a Whole Life policy at a later stage. I have bought a Whole Life policy for my child which I pay premium for 20 yrs and there after the policy continue to run. Effectively my child will have a Whole Life cover for free when he is 20 yrs old.
Make sense?
Regards, Anthony
Reply to axt
ReplyDeleteIf you are happy with this policy, it is fine.
I am eager to attend the talk held by Fisca on STI ETF at a more convenient location.
ReplyDeleteaxt,
ReplyDeleteyou stop paying the premium but NOT for free after the 20 years. Did your agent tell you that it is free after 20 years? Sorry, to tell you the truth which your agent didn't want to tell you or he or she told a different a story, the cash value is paying for it and it is paying it on an increasing basis. Don't be too happy.. your cash value is affected by this and the return will be a miserable 2% or less even after 30/ 40 years.
You see, Mr axt, your trusted insurance agent or whatever his title is, suppressed this information , right? and maybe many other information.
The premium you pay may get a bigger coverage.Cover for life is NOT key but adequacy is . Also don't be too sure about coverage for life. If there should be a financial crisis in the future and there is a need to dip into the cash value that will the beginning of the end of the policy. Also if you should have a crisis because you are inadequately covered your child policy will also go in smoke.Planning is the key to financial freedom and just buy insurance on an isolated basis from a salesman is doomed from the start.Get a review by FISCA.