I have bought a protection-based ILP from GE about 4 years ago. Since I have already paid most insurance charges already, does it make sense to continue paying for it till age 65 or buy new life plan?

$100k Critical Care Advantage rider for ECI (does this cover me till age60 only? After that no more ECI coverage?)

• depends on your policy term. it can be up to 70/75 if you decided on that that at the start

• check your policy for the details.

For this plan, could I reduce the sum assured to $0 now or do I have to wait till age 55?

• Premium Reduction can be effected from the next premium due date.

• Reduced premium must satisfy the minimum premium limit.

Looking at having CI coverage for life but would not want to pay in retirement years.I am 33ANB, male non-smoker, AI $70k/yr. Would taking up a new life plan be expensive? What options could I consider for affordability?

given your AI is 70k, 10% of that would be $7k, 15% would be $10.5k. We often recommend people to spend within 10-15% of their AI. If you have only a budget of $1k

• You can consider a Term plan if you would like to "top-up" your life cover, GE has a plan all the way till 99 years. flexible to your requirements.CI is available but Late CI only.

• Alternatively. there is a top up for all stages of cancer which is affordable. which is 1/3 of all deaths in singapore.

if you need help to decipher your current plan, do drop me an IG DM or email @insurancebyjoshtay or [email protected]​​​

Generally, buying a new life insurance policy will be more expensive because of higher mortality charges. Before we explore that option, let's look at your current policy first.

Firstly, it is important to realise that the insurance charges for an investment-linked policy increases with age. Consequently, the cost of insurance goes up as you grow older. In other words, less premium will be invested as the policy uses more cash value to pay for the higher insurance charges. Hence, this is an important point to note.

Given that you have Critical Illness coverage and Early Critical Illness coverage, these insurance charges are not cheap to begin with. Thus, you may wish to do a comprehensive calculation to determine whether it makes sense to keep this rider / policy.

Next, there is usually a minimum sum assured for most investment-linked policy. Hence, you may not be able to reduce it to zero completely. Despite that, you may be able to reduce the coverage after the end of the second policy year. To be sure, check the policy contract.

Finally, back to answering your question on whether it will be expensive to buy a new life insurance policy. For this purpose, it is easier to calculate the total capital outlay and total cost of insurance for comparison. Thereafter, it will be obvious on which is the more valued for money option in the long-term. To do this, you may seek professional advice from your agent or to speak with an agent that you trust for an in-depth analysis.

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