I have often advised students to avoid buying a life insurance policy, until after they get married. This is to avoid tying up their savings to get a poor return. The policy take away too much of their accumulated premium. Here is a typical example showing that too much is taken away.
http://tankinlian.com/FramePDF.aspx?ID=655
http://tankinlian.com/FramePDF.aspx?ID=655
2 comments:
In the article, I said that the fair amount to be taken away is 15% of the accumulated premium. I will be changing it to 20%, which I think is reasonable and more adequate to cover the expenses and profit of the insurance company.
Dear Mr Tan,
Perhaps a student is better off buying accident insurance and/or hospitalization insurance?
Or even buying life insurance on his family's breadwinners?
Principal being to protect the income stream of the breadwinner.
Would I be correct please?
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