How necessary is it to have an insurance that covers for the entire life? Should i keep my ILP when i have term coverage till 70 years old?

Hi anon,

If you have a financial risk that you need to transfer to an insurer, that's when you take on a policy.

So for death/TPD coverage, that will be a risk that will only be present if you have liabilities or dependents. That would be best covered by a term plan.

For CI coverage, you might want to have coverage for this for your whole life, if you do not wish to cause financial burden to your children or spouse in old age. In this case, a limited payment life plan will almost always be a better choice than say, a term till 99.

You don't have to get coverage via an ILP. Traditional plans work perfectly well (ie. your typical term and whole life plans).

There may be better options for you but you should speak with an advisor to get more inputs, etc.

You may want an insurance that cover you for life, for these 2 reasons:

• you want to leave something behind, but don't want to use your retirement money for that purpose, because you don't know if it will be enough.

• you want to have critical illness cover for life, which is usually a rider on a whole life policy.