facebookHi, I would like to seek opinion regarding my dad's term plan. He is 63 this year and his term life is expiring soon. Should he convert his term to whole life at this age? - Seedly

Advertisement

Anonymous

27 Jul 2020

βˆ™

Insurance

Hi, I would like to seek opinion regarding my dad's term plan. He is 63 this year and his term life is expiring soon. Should he convert his term to whole life at this age?

AIA offered an option to convert his term to whole life without the need to produce evidence of insurability. Does that means his existing condition (diabetes) will still be covered after conversion? Would you still recommend him to convert given that the premiums can be really expensive at his age? Are there any other alternatives to consider for his age? Thank you.

Discussion (1)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

27 Jul 2020

Independent Financial Advisor at Promiseland Independent

Hi Anon, I would because it's free money. However, only if he can continue the cashflow required to service the Whole Life conversion.

The thing is he won't be paying more than what he'll get when he passes, so this allows him to draw down from his networth and see it replenished before he leaves, essentially buying his net worth now.

This can't be something you do if if you're not already comfortable or have some means of abundance.

But if you or your siblings can support the endeavour, it may be ideal as it'll guarantee some form of inheritance and it'll incentivise you (not that you need it of course) to make sure you take care of dad during his golden years.

Write your thoughts

Advertisement