High cost of life insurance products

It can cost you almost 18 months your savings, if you buy a life insurance or investment-linked policy.

If you save $300 a month, the cost (to pay commission to the insurance adviser and the insurance company) can take away $5,400 from your savings. This is far too high.

Many graduates buy an insurance policy to help their friend (who is an insurance agent), without realising the high cost.

NTUC Income has reduced this cost to about 8 months, under our Ideal plan. This means that you can get an additional $3,000 of savings that can earn a return for you for the next 20 or 30 years - amounting to $10,000 or more.

Look into the front end cost. Choose a plan that gives you a higher upfront investment.