Monday, December 20, 2010

Life insurance - its useful role

Life insurance can play a useful role for consumers to manage their personal finance, provided that it can be bought directly without incurring an exorbitant upfront charge (to pay commission). Here is chapter 7 from my new book, Get Value from your Life Insurance Policy.

You can learn more about the Flexi-Life policy (an investment linked policy where 100% of your savings is invested from the first month) here. This policy is not available yet, but will hopefully be available one day!


zhummmeng said...

ID5 was something like that which you did during your tenor. Commission was one time flat rate
regardless of the monthly RSP.
This was good but the greedy agents refused to sell, right?

yujuan said...

Many people connected to insurance
companies must be greatly incensed about the slamming comments heaped on them in this blog.
We, the insured party are all the same incensed, today received a cheque for a matured one-time premium policy,with an attached payment advice, stating paid premium amount and bonus amount. That's all, no breakdown of returns and the exact accumulated bonuses. Great Eastern refused my request for breakdown outright.
What kind of attitude is that.

Spur said...

I believe ID7 was the very good (i.e. very low commission) ILP setup during Mr Tan's time. It was only sold in the various Ntuc business centres by salaried agents. Of course no agent wanted to sell it. It was never sold, only bought by savvy consumers who insisted on it.

As for the single-premium endowment, you can easily compute the yield using Excel or Open Office. I venture that it would be about 2.5% per annum if the tenor was 20 years or longer, and less than 2%pa if your tenor was 10 years or shorter.

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