facebookI 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? - Seedly

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          Anonymous

          09 Dec 2020

          Insurance

          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?

          GE Smart Protect (RP) II ~$6k/yr
          $300k death/ TPD
          $300k CI rider
          $100k Critical Care Advantage rider for ECI (does this cover me till age60 only? After that no more ECI coverage?)

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

          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?

          3

              Discussion (3)

              What are your thoughts?

              Hi there,

              Because the mortality charges are quite hefty towards the end (and no guarantee what will happen then, you may be diagnosed with something that may make you difficult to be insured), you may want to consider a plain term plan that covers for death and and TPD alongside a standalone CI plan Instead. The total cost of a term plan + standalone CI will probably be half of what you're paying for the ILP now and the savings in premiums can/should be saved or invested.

              The other option for you is to go for a life plan if you dont want to pay all the way. The cash value will be able to help you break even your premiums in 20 years. The cost of it is higher at the start then the above suggested option but at least you can break even. Which to go for depends largely on your life stage. If you're looking at settling down at some point and big ticketed items, it might make more sense to reduce your cash outlay at the start for insurance.

              So you also have to consider the opportunity costs if you do not start to use the premium savings to invest it Because the earlier you start, the easier it'll be for you over the Long run. Ultimately whether to cancel it or not, do seek a financial advisor to explore your options.

              Financial planning is an integral part of life. You can reach me here to find out more.

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                  Josh Tay

                  Josh Tay

                  09 Dec 2020

                  Level 4·Financial Consultant at Great Eastern Life Assurance

                  $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]​​​

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                      Pang Zhe Liang

                      Pang Zhe Liang

                      09 Dec 2020

                      Level 14·Senior Financial Services Consultant at AIA Singapore Private Limited

                      Generally, buying a new life insurance policy will be more expensive because of higher mortality cha...

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