Tuesday, May 29, 2012

Student should not buy life insurance too early

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

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2 comments:

  1. Tan Kin LianMay 30, 2012 8:14 PM

    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.

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  2. Singapore's 5 Minute Investment DiaryMay 30, 2012 9:26 PM

    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?

    ReplyDelete