27 Feb 2020
I’m a 21 year old NSF, I have Integrated Shield with AXA & some investment. Should I get a Whole Life insurance?
Should I be looking to get a whole life insurance policy at this stage in life? Or should I be looking at getting other policies/focusing on other aspects of personal finance first?
I'm presuming that you're talking about Whole Life (WL) Limited Payment, with critical illness coverage.
If we assume that you with start working after you complete NS (even if you go for further studies, this will just delay the start of your working career by 3-4 years), then you can consider getting a WL first in anticipation of your CI coverage needs when you start working. It's not strictly mandatory at this point in time however. This is only if you have the funds available to pay for the premiums till you get a stable job, over and above your emergency funds. I have also seen parents purchase WL with CI for their children, and eventually the child takes over paying when he/she goes to work, the reason being, premiums are lower when one is younger.
Without sufficient information about your current financial situation, it'll be hard to say for sure if a WL with CI would be a prudent purchase now. But if you think that you can afford it, getting it a few years in advance will reward you with lower premiums. Speak with an independent financial advisor in order to get an idea of the options available on the market for you.
The opportunity cost to life insurance currently is still low. (except for insurability).
It starts to be expensive once you get to age 28 and by age 32, the premium increment to coverage is high. Make your play, since life insurance is for dependents and liabilities (like loans to be paid off).
Look into growing your income if possible. Investment is only worth it once you have at least $200,000 capital for dividend and management of the investment funds for returns.
Please read widely whether Life Insurance is really a good idea, there are many disadvantageous poin...
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