Would it be a good idea to spread my insurance coverage across different insurance provider to reduce exposure of credit risk to any one insurance company?
i.e. instead of getting a single $500k coverage with one company, i get 5X $100k coverage with 5 different insurance providers?
Reply to Warren The risk of this failure is very small. It is not worth the trouble. If the company fails, which is quite remote, you are likely to get insurance from another compnay. They may also transfer your insurance to another company. It is different from having all your savings in a company. If it fails, all the money is gone. This is more serious that losing your term insurance cover.
Hi Mr. Tan, in Q3 you mentioned that "You should pat $18-$36 a month for $10,000 of insurance", is this a typo error? i think the amount should be $100,000 instead.
Would it be a good idea to spread my insurance coverage across different insurance provider to reduce exposure of credit risk to any one insurance company?
ReplyDeletei.e. instead of getting a single $500k coverage with one company, i get 5X $100k coverage with 5 different insurance providers?
Reply to Warren
ReplyDeleteThe risk of this failure is very small. It is not worth the trouble.
If the company fails, which is quite remote, you are likely to get insurance from another compnay. They may also transfer your insurance to another company.
It is different from having all your savings in a company. If it fails, all the money is gone. This is more serious that losing your term insurance cover.
I dont think is wise to get coverage from so many insurance co. is best to just take one. in case of claim, it will not be that messy.
ReplyDeleteHi Mr. Tan, in Q3 you mentioned that "You should pat $18-$36 a month for $10,000 of insurance", is this a typo error? i think the amount should be $100,000 instead.
ReplyDeleteReply to 1:18 pm
ReplyDeleteIt should be $18 to $36 a year. The FAQ has now been corrected. Thanks for pointing out.