Dear Mr. Tan
Q1. When to buy the term or accident insurance? If when have dependent (eg: children?)
Q2. If I already purchased term insurance (cover death & terminal illness), do I still need to buy term accident insurance?
Q3. Noted your advice a term of 25 years of shorter. if youngest children haven't reach 21 year old /graduated, do you advice need purchase another term insurance to cover them to grow up?
Q4. Do you advice purchase accident term insurance on children?
Q5. My parent (Malaysian) who doesn't have medical coverage (eg: Medishield or Private insurance coverage) in Singapore and Malaysia, what you will advice (any insurance term or opinion) if they falling sickness in future?
REPLY
Q1. You buy insurance when you have a need to provide a lump sum to your family in the event of your premature death. The family could be your parents who depend on your income, or your spouse and young children. You can also buy accident insurance to provide a payment in the event of permanent or temporary disability.
Q2. If you have adequate term insurance, you usually do not need to buy accident insurance. However, as the premium is quite low, you can buy accident insurance to provide a benefit in the event of permanent of temporary disability caused by accident (which are not covered by a term insurance policy).
Q3. You should be covered for term insurance until your youngest child reach age 21 or until you have accumulated sufficient savings on your own. A term of 25 years is usually sufficient, but it is all right to be insured a few years longer. You can compare the difference in premium and make your decision.
Q4. You can buy a small amount of accident insurance for your child to cover payment of medical fees in the event of insurance. The premium is very low, so you can treat the expenses like any other small expenses.
Q5. If your parents are living in Singapore, you can insure them under Medishield or a private insurance policy. Get the advice of an insurance adviser.
Buy your term insurance from the direct channel of any insurance companies. If you buy from direct channels you don't need to pay commission to any agents, you pay them a small fee to help to fill up the forms. Before you do that , go to www.compareFirst to check out all the premiums of all the term insurance plans. The term insurance is subject to $400K maximum per company which may not be enough . If it is not enough buy from another company to increase your coverage..
ReplyDeleteTo calculate how much you need you can go to CPF website calculator or to another website called www.drwealth.com.sg.
If you wish to buy any life insurance, like whole life or endowment(which I discourage because they are scam products) at a discount or rebate you can go to www.providend.com.sg which offers 30% discount on any life insurance or www.fundsupermart.com.sg for 50% discount.
You see, you don't need an insurance salesman to help you. There are a few robo-advisers available. Insurance salesmen don't give you any advice they only want to sell you products with high commission. Why should you go to them then? Buy direct.
Thanks for the this great blog! waiting for your next post.- 2 wheeler insurance
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