10 Feb 2020
With regards to my plan, is the PruLife Multiplier Flex 70 4X suitable or good for me? What other insurance policies should I be considering?
First of all, i will say i am bias against P***. multiple personal experiences. worst customer service and agents treat normal humans like dirt. I had to complain to MAS or personally visit their office before they will bother to reply.
Anyway, prulife is a whole life plan. not sure what was the rationale for your father buying a life plan for you. Typically, a life plan can be seen as a forced savings as it has a cash value at the end of premium term. Or it can be use to provide for beneficieries who cannot be independent (eg disabled). I have not seen the benefits illustration, but newer life plans cash value in the end barely match inflation. If savings is the concern, you may be better off saving in CPF or sg gov bonds or certain bank high yield fixed deposits.
If policy is fully paid for or only a few years left to pay, might as well keep it. So your next question should be whether the coverage taken is enough. take a look at how much is the disability (TPD) and critical illness (CI) coverage.
SAF term plan does not cover CI (you need to add a rider). If CI or early CI is a concern, consider to look at other plain CI coverage plans.
For TPD, it is to provide you (or dependants) some money in case you are unable to work anymore. Few factors to consider how much is sufficient:
ongoing annual expenses
nursing, rehab facilities, medical bills for TPD
future expenses (eg children's education)
you can probably tell that as we get older, there will be more liabilities and responsibilities.
As SAF terms covers only until 65 (or is it 70?), I can consider life plan as a compliment. My first claim will be term. After term plan terminates, I will then use life plan for claims.
In all, every individual needs are different. It may sound cliche, but do speak to someone who can understand your needs better.
I highly recommend the good people at sonylife https://www.sonylifefa.com/
They are not reimurated by commissions so they will not recommend you useless plans.
Hope this helps.
disclaimer: I am not working at or for sonylife and I do not recive any form of kickbacks for recommending.
I think the group term plan has good coverage for the price you are paying for because it's the most affordable policy around. In regards to PruLife Multiplier, it has a 4x multiplier effect till you are 70, and only the multiplier effect stops after 70, but the basic sum assured stays through out the whole of your life. But as this product has a cash value, at 70, your sum assured would have followed the cash value rather than the sum assured as it would be higher then.
However I personally do recommend you keep the life policy, as life insurance policies shouldn't be looked to as 'forced' savings, as the products now are not as lucrative as they were in the past.
Life/ term insurance is the only product that an individual can purchase many times, as we cannot put a fixed value on life, thus what most people do is they get a whole life insurance then they would purchase more term policies to increase their coverage as needed.
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