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Term or Life Insurance

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midlet2013
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Term or Life Insurance

Postby midlet2013 » Mon, 24 Oct 2016 8:58 am

Hi

I would like some info/advice on whether I shd take Term Insurance. My wife is keen on it.

Currently, we are convered by medical insurance from our companies. We also upgraded MediSave/Shield with Aviva which allows in-patient coverage (quite comprehensive, includes Private hospitals).

But recently, my agent called us trying to encourage us to buy Term Insurance ?

Thanks
S

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ecureilx
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Re: RE: Term or Life Insurance

Postby ecureilx » Mon, 24 Oct 2016 10:08 am

midlet2013 wrote:Hi

I would like some info/advice on whether I shd take Term Insurance. My wife is keen on it.

Currently, we are convered by medical insurance from our companies. We also upgraded MediSave/Shield with Aviva which allows in-patient coverage (quite comprehensive, includes Private hospitals).

But recently, my agent called us trying to encourage us to buy Term Insurance ?

Thanks
S


If you got $ buy ...

Honestly it's your decision how much you want to put aside for insurance.

How much is the premium ?

midlet2013
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Re: RE: Term or Life Insurance

Postby midlet2013 » Mon, 24 Oct 2016 11:07 am

ok thats a good point. i think the premium > 175$ a month. but depends on content of the package. i think we can afford to pay, but my intention is to understand how useful n necessary something like Term Insurance is.

i hope some other people also answer so i get diverse perspective.



ecureilx wrote:
midlet2013 wrote:Hi

I would like some info/advice on whether I shd take Term Insurance. My wife is keen on it.

Currently, we are convered by medical insurance from our companies. We also upgraded MediSave/Shield with Aviva which allows in-patient coverage (quite comprehensive, includes Private hospitals).

But recently, my agent called us trying to encourage us to buy Term Insurance ?

Thanks
S


If you got $ buy ...

Honestly it's your decision how much you want to put aside for insurance.

How much is the premium ?

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Strong Eagle
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Re: Term or Life Insurance

Postby Strong Eagle » Mon, 24 Oct 2016 9:20 pm

You buy life insurance for one purpose only: To ensure that your surviving spouse and children can continue to live in the same manner when you pass on.

So, in the early years when you are primary wage earner and you don't have a lot of savings, term life insurance makes sense because of the additional security it provides.

As you get older, the kids move out, and your assets increase, you have to ask yourself if your total assets could support your spouse. If the answer is yes, you don't need insurance, if no, then you need to determine what amount is sufficient to support the spouse.

You don't need to pay for more than that, unless you just want to leave a lottery like winnings when you kick the bucket.

DrScrumMaster
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Re: Term or Life Insurance

Postby DrScrumMaster » Tue, 25 Oct 2016 8:08 pm

Before buying life assurance, ask yourself if you trust the beneficiaries...

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ecureilx
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Re: RE: Re: Term or Life Insurance

Postby ecureilx » Tue, 25 Oct 2016 9:28 pm

DrScrumMaster wrote:Before buying life assurance, ask yourself if you trust the beneficiaries...

Ouch.

With such trust issues... divorce now ?

Girl_Next_Door
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Re: Term or Life Insurance

Postby Girl_Next_Door » Wed, 26 Oct 2016 1:32 pm

Before you decide whether you want to buy term or life insurance, you have to decide what are your needs first. Your insurance agent should go through a need analysis to assess if you indeed have such a need or not.

If he/she didnt, here are some things you should consider
- How long are you staying in Singapore or plan to stay in Singapore?
- What kind of retirement plans or savings do you have currently?
- Will you continue to have access to medical insurance in Singapore or back home, after retirements?
- Do you have any outstanding debts?
- Are you looking to purchase something for retirement, or you are looking to purchase something in case something happen to you, and your family depends solely for money?

Personally, I make sure that myself and my husband has comprehensive medical insurance. We also purchase term insurance, equivalent to our mortgage loan amount, in case anything happened to either of us. We choose to take term insurance instead of mortgage insurance because of the cost (similar cost) and we can still keep the term insurance if we sell our current property or upgrade. My husband also have a pension fund, that his employer subscribes and our longer term retirement plans is primarily on investments that we made. As our assets grow, I also wanted to buy additional term insurance but my insurance agent advised that there is one specific investment linked plan whereby the premium is cheaper with the same coverage, and will enable a longer coverage period, hence I bought that as well.

In general, your agent should be able to guide you on what is the best product, based on your situation, and not just push a specific products. If he can't provide any guidance, you should change and find someone who can.

okonu
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Re: Term or Life Insurance

Postby okonu » Wed, 01 Feb 2017 6:35 pm

Term life insurance is sensible for reasons stated above.

Investment linked life insurance is almost always a bad deal vs investments and separate term life insurance. Keep the two requirements separate


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