facebookI'm a 22 y/o male. I believe in buy term, invest the rest. However, today I was advised whole life may be better for my age due to lower whole life premiums. Which type of insurance is better in my situation? - Seedly

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Ang Bing Xian

Ang Bing Xian

Double Degree in Accountancy & Business at Nanyang Technological University

15 Jan 2021

Insurance

I'm a 22 y/o male. I believe in buy term, invest the rest. However, today I was advised whole life may be better for my age due to lower whole life premiums. Which type of insurance is better in my situation?

Discussion (17)

What are your thoughts?

Buy Term, Invest the rest is always what the investors would say. It's true that a Term plan is cheaper and can only cover you for a temporary period. However, are you able to invest and have a return of at least $300K spare cash to cover you for the period where you are covered by the Term plan?

I would suggest getting a basic life plan to cover you for life if you're young, it can generate more compound interests for you.

If you would like to discuss more on proper planning, do hit me up and we can discuss further!

Tan Siak Lim

Tan Siak Lim

05 Nov 2021

CFP. Director, Financial Advisory Group at Financial Alliance

Indeed, whole life is very attractive for young people, if I am 22 years old, I will likely buy a whole life and not term, especially when it is limited pay, cover for life. However, the main consideration is not premium cost, but rather whether you need a coverage for life, if you need, then whole life is the most effective solution.

Yes, at least one life plan, then can top up with term for additional coverage.

I was like you, at a cross-road between whole and term until I read this extensive report published by MoneyOwl, I had a better understanding of what meets my need. Appending here "The Case of Term vs Whole Life Insurance". Hope it helps you in your decision making.

Also, recently discovered a good platform to purchase insurance. If you buy Life products like whole/term life from PolicyPal you're entitled to $500 off from first year of premiums. Use my referral code to get $20 to kickstart your journey.

https://refer.policypal.com/c/CLOVER

Maybe life insurance isn't the best investment option but a financial institution trick.

better fol...

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