Sunday, May 08, 2011

Drop Life, buy Term, Invest the Difference

Dear Mr Tan,
At last I got a someone who can give advice objectively which I could not get from elsewhere. Your book 'Get Value From Your Life Insurance' is an eye-opener to me. I only started to read about financial planning a year ago when there was a major change in my life stage. I start to realize that saving in bank and CPF alone will not be enough to see me and my wife through retirement. This is so especially that we belong to the sandwich generation. Now at 40, my family commitment has increased financially and this is affecting my long term goals with retirement planning being more urgent than ever before as nowadays I find myself difficult in setting saving aside immediately after every pay cheque, even though I regard myself as a modest-living person and with no car. I'm currently reviewing my 3 existing whole life insurance policies which I bought during my early years when I've very little financial knowledge.

Your book provide an easy to understand determination of the effect of deduction and yield, but trying to interpreting the policy and its BI figure proves confusing with limited information in them. I'm a firm believer of 'buy term, invest the difference' ever since I started to know more about insurance planning. I will greatly appreciate, out of your busy schedule, if you could provide advice if my 3 existing insurance policies are worth continuing? Attached are the 3 polices for your review.

Will it be more advisable and worthwhile in terms of cost saving for me to get a decreasing term policy when my financial commitment start to lessen in my later stage of my life?

Recently in the market, there is a new product covers for early stage critical illness. May I know what is your opinion on this product?

REPLY
Please read this FAQ and consult Vincent Sear
http://tankinlian.com/admin/file.aspx?id=435


The book on life insurance is available from i-shop.



1 comment:

zhummmeng said...

Buying an early stage critical illness cover is like jumping from the pan to the fire. It is a gimmick. What you really need is an H&S medical to take care becuase the amount of payout is only 25% of sum assured. H&S can handle the amount easily. Don't be conned into buying.This might apply to breast cancer only.
Ask what is the probability of the event happening?

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