Dear Mr Tan
I am a home maker with 2 teenage sons. The younger son recently bought a NS insurance plan of 150k but my elder son has no insurance plans at all. My husband has a public office group insurance scheme of 200K. We have no other insurance policies. I seek your advice on whether it is good to buy a vivolife plan for my 2 sons.
REPLY
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No, don't waste money..for protection you might not afford enough; for saving it is rubbish.
ReplyDeleteBest option is to separate them. Buy a term that covers their risks AT THE MOMENT.Invest the rest in a regular or RSP in a low cost portfolio.
Many consumers have the misconception that RSP or investing is risky. That depends on who is doing for you. If you get an insurance salesman you will see smoke straight away..
ReplyDeleteDid you know that the traditional insurance products are riskier? First, these seemingly low risk products cannot help you to achieve your goals. Their real return is NEGATIVE. The saddest thing is the insurance salesmen don't want to tell you or don't know how to tell you. For the company, they pretend . The company is only interested in the high APIs and cheap source of capital to fund the senior managers' extravagant life style.
Remember this.. what is good for the company and their salesmen is NEVER good for customers. There is an inverse relationship between your interest and their interest.It is loser game for you.
What this lady poster needs is a qualified financial planner to plan for her family instead going out there to 'BUY". You wouldn't know what to buy.This is a fact. In all likelihood you will be SOLD.That is dangerous.This explains why vivolife? How did the agent know that you need vivolife? Has he or she fact find you and your family and uncovered your needs? Are your 2 teenage kids more important than your husband the bread winner? If he dies all these plans will go up in smoke. Is the ntuc agent a salesman?, a salesgirl? Salespeople don't know how to plan. They only know how to plan for themselves and that is why they plan to peddle you vivolife to make huge commission.
ReplyDeleteDon't put the cart in front of the horse. The horse is your husband.All of you depend on him.Make sure he has adequate insurance to take care of himself and the rest of the you, the family.