tag:blogger.com,1999:blog-11702093.post5161028031446515553..comments2024-03-28T22:56:40.743+08:00Comments on Tan Kin Lian's Blog: Family Income PolicyTan Kin Lianhttp://www.blogger.com/profile/00617069056914635271noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11702093.post-58858000909378922442008-03-01T16:43:00.000+08:002008-03-01T16:43:00.000+08:00In my opinion, there is also a need to factor in y...In my opinion, there is also a need to factor in your projected personal savings at age 60. It is fair to assume that as one ages, the savings will increase. Hence a decreasing term, though leaving $36K at age 60 is still alright, if you have around $800K - 900K savings then. <BR/><BR/>Some may ask, how do I save so much? Take heed from Mr Tan's advise, invest in a low-expense diversified equity fund.<BR/><BR/>I also personally feel there is no need to leave the mathematically correct amount for children. Sometimes, living through tougher conditions will mould one's character. I attest to this as I self-funded my university education by working part-time. It was a good character building experience.<BR/><BR/>blackboxAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-11702093.post-62190511121958994972008-02-29T21:34:00.000+08:002008-02-29T21:34:00.000+08:00You can get $1 million term insurance cover at age...You can get $1 million term insurance cover at age 30 for a premium of $1,500 to $1,700, if the term is for 10 years or if you insure under a group insurance policy where the premium is subject to change on renewal.<BR/><BR/>If you wish to buy a term insurance at a level premium for a longer period, you have to pay a higher premium.<BR/><BR/>The benchmark premium for a male age 30 is:<BR/><BR/>10 year term: $1,127<BR/>20 year term: $1,803<BR/>30 year term: $3,290Tan Kin Lianhttps://www.blogger.com/profile/00617069056914635271noreply@blogger.comtag:blogger.com,1999:blog-11702093.post-38210555985950296252008-02-29T20:56:00.000+08:002008-02-29T20:56:00.000+08:00You certainly have a good point.Anyway, I asked ar...You certainly have a good point.<BR/><BR/>Anyway, I asked around for a million level term cover, the range is between 1500~1700/yr. This could be an alternative for people who wish to get a lumpsum paid out. After all, some household may need more than $3,000 - an example is my family, we need about $5,000 a month to maintain, without factoring family vacations.<BR/><BR/>As I mentioned always, I buy insurance with the intention to claim. So while you don't see a need to insure $1 million at age 60, I see it as a good way to leave good money behind for my children (at least they will have head start for their retirement).<BR/><BR/>For me, if I were to pay $1,600 at age 60 to get cover of 1 million vs $1,060 to get cover of $36,000, I rather have the former.<BR/><BR/>cheers.<BR/><BR/><BR/>R.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11702093.post-21994442294474970722008-02-29T16:14:00.000+08:002008-02-29T16:14:00.000+08:00If you wish to insure for $1 million under a level...If you wish to insure for $1 million under a level term policy for 30 years, the annual premium is likely to be $3,000 a year, i.e. 3 times of the family income policy.<BR/><BR/>It is better to spend one third of the premium and get a family income policy. There is no need to insure $1 million at age 60!Tan Kin Lianhttps://www.blogger.com/profile/00617069056914635271noreply@blogger.comtag:blogger.com,1999:blog-11702093.post-2778183871858954802008-02-29T15:47:00.000+08:002008-02-29T15:47:00.000+08:00According to your description, it seemed that for ...According to your description, it seemed that for the family income plan if you don't claim in the 1st year, every year onwards you lose, $36,000 for the same $1,068 premiums you paid. It would be fairer if the premiums also reduced by the same rate. Or else, on the 30th year, you will be paying $1,068 to get $36,000 cover, which is not very logical. It is like paying same premiums for a depreciating asset.<BR/><BR/>Or else, why not spent the same $1,068 and buy a 1 million term policy for the next 30 years. At least on the 30th years, when you pay the $1,068 premium, you still get $1 million coverage, instead of $36,000. <BR/><BR/><BR/>R.Anonymousnoreply@blogger.com