facebookHow 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? - Seedly
Seedly logo
Seedly logo
 

Advertisement

Anonymous

12 Dec 2020

Insurance

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?

Currently i have a term insurance that covers me up to 70 years old.

Coverage includes terminal illness, early stage crisis, critical illness under pruactive term.

At the same time, i have an ilp that i signed in 2016. Coverage about the same but with pruextra for pvt hospital.

Inital goal was to have the term cover abit more from now till 70. But i have been reading alot of not to buy ilp. I do my own investment.

Current payment of all my insurance is about 7% of my annual income.

4

      Discussion (4)

      What are your thoughts?

      Elijah Lee

      Elijah Lee

      12 Dec 2020

      Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

      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.

      Reply

      Save

          Tan Siak Lim

          Tan Siak Lim

          11 Dec 2020

          Level 6·CFP. Director, Financial Advisory Group at Financial Alliance

          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.

          Reply

          Save

              Jiayee

              Jiayee

              10 Dec 2020

              Level 11·Salaryman at some company

              Excluding hospitalisation insurance:

              Not necessary for the entire life unless someone is dependent ...

              Read 2 other comments with a Seedly account

              You will also enjoy exclusive benefits and get access to members only features.

              Continue with Facebook
              Sign in with Apple

              Sign up or login with an email here

              Write your thoughts

              Advertisement