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Review of existing life insurance coverage
14 Feb 2018 (76 views)

Dear Mr Tan,

Thank you for your videos and thoughts on insurance, investments. They are easy to understand and I have a learnt a lot watching them. I think you are doing the public a great service and I want to thank you.

I am married, in my mid 30s, and do not have any children.  I give a monthly allowance to my elderly mother. 

These are the policies that I am holding:

  1. Early Critical Illness $100,000

  2. Whole Life (without C.I) $50,000

  3. Whole Life (with C.I) $30,000

  4. Term Plan $300,000

  5. Dependent Protection Scheme $47,500

  6. Accident Plan

  7. Hospitalization Plan

I am paying over 10% of my take home salary monthly for insurance

My agents are advising for greater C.I coverage as we are growing older and also savings plan, as well as an income protection plan in case I am not able to work. I don’t want to pay so much premium. Instead, I wish to invest in the stock market for retirement.

My agents emphasize that the whole life plans have cash value in them and it is a pity to surrender them so soon. 

I would like to keep insurance simple, mainly just for adequate protection. When cash is needed to be used, this is when we dip into our emergency fund, yes? We have about 6 months of emergency fund each. 

Mr Tan, am I over insured? Do I need whole life plans as well as the early critical illness? Do we need income protection incase we get sick and cannot work? I think I am more concerned about getting sick and needing money more than what we can leave behind.

REPLY
You are certainly over-insured. It is too much to pay more than 10% of your income on insurance protection.
I recommend spending only 1% of your income on protection.

As a form of saving, the life insurance policy gives a poor return. You can invest your savings in other ways to get a better return.

Register to attend this talk. 
http://www.fisca.sg/event_det.aspx?id=18

You can buy the book entitled "Continue My Life Insuance Policy" here. It will help you to decide on your existing policies.
http://www.tankinlian.com/cart.aspx?ID=8

Tan Kin Lian

 



Review of existing life insurance coverage
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Dear Mr Tan,

Thank you for your videos and thoughts on insurance, investments. They are easy to understand and I have a learnt a lot watching them. I think you are doing the public a great service and I want to thank you.

I am married, in my mid 30s, and do not have any children.  I give a monthly allowance to my elderly mother. 

These are the policies that I am holding:

  1. Early Critical Illness $100,000

  2. Whole Life (without C.I) $50,000

  3. Whole Life (with C.I) $30,000

  4. Term Plan $300,000

  5. Dependent Protection Scheme $47,500

  6. Accident Plan

  7. Hospitalization Plan

I am paying over 10% of my take home salary monthly for insurance

My agents are advising for greater C.I coverage as we are growing older and also savings plan, as well as an income protection plan in case I am not able to work. I don’t want to pay so much premium. Instead, I wish to invest in the stock market for retirement.

My agents emphasize that the whole life plans have cash value in them and it is a pity to surrender them so soon. 

I would like to keep insurance simple, mainly just for adequate protection. When cash is needed to be used, this is when we dip into our emergency fund, yes? We have about 6 months of emergency fund each. 

Mr Tan, am I over insured? Do I need whole life plans as well as the early critical illness? Do we need income protection incase we get sick and cannot work? I think I am more concerned about getting sick and needing money more than what we can leave behind.

REPLY
You are certainly over-insured. It is too much to pay more than 10% of your income on insurance protection.
I recommend spending only 1% of your income on protection.

As a form of saving, the life insurance policy gives a poor return. You can invest your savings in other ways to get a better return.

Register to attend this talk. 
http://www.fisca.sg/event_det.aspx?id=18

You can buy the book entitled "Continue My Life Insuance Policy" here. It will help you to decide on your existing policies.
http://www.tankinlian.com/cart.aspx?ID=8

Tan Kin Lian