Friday, November 18, 2011

Tips on life insurance coverage

A young man asked me, "How much life insurance do I need and what type of policy to buy?" The answer can be found here: http://tankinlian.com/admin/file.aspx?id=589

1 comment:

  1. 1.Young man, if you are unmarried, no dependent you DON'T NEED a life that covers death.
    If you are married with 2 kids and wife ,a full time housewife. Rule of thumb you need $800K for dependent income replacement, children education and wife's retirement. (mortgage, personal liabilities not included). Pare down the coverage and review after your children have become financially independent.
    2.you need H&S medical, maybe a A plan. Pay with your CPF medisave
    3.You need a critical illness plan taht covers for treatment cost and income replacement for 5 years.
    4. An income disability plan that covers at least 70% of your income until 65.
    Do you need to cover these risks IMMEDIATELY?
    Yes!!! because you are carrying these risks and you need to cover them COMPLETELY AND FULLY if not you are carrying a time bomb.
    Can you afford to address these risks all at the same time?
    Yes , you can....use term insurance and it won't cost you more than $150 a month if your adviser (not salesman) is honest and competent.
    What is the benefit?
    YOU HAVE COMPLETE PEACE OF MIND.
    After this, you can focus on growing your wealth, your retirement and your children' U education knowing that you can afford to drop dead any time.
    This is insurance planning and the products are plain vanilla products
    at the lowest cost and NOT the rip off products that benefit the agents and his company.

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