facebookIf you have a life insurance, do you wait to redeem it and get term insurance and invest the difference. Is it wiser? - Seedly

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          Anonymous

          18 Apr 2019

          Insurance

          If you have a life insurance, do you wait to redeem it and get term insurance and invest the difference. Is it wiser?

          4

              Discussion (4)

              What are your thoughts?

              Some ways you can compare to see if it's worth keeping it

              • How long do you have to pay for it?

              If you only have to pay for a limited time for a lifetime coverage, I would suggest to keep it as it covers you till age 99. Unless you are able to find a term insurance with higher coverage and lower premium, which brings me to my next point.

              • Would buying term insurance to cover yourself till your desired age be cheaper than all your premiums paid & payable for your own life insurance? (Compare total premiums you need to pay / have paid between your life insurance and term insurance you intend to get)

              I am assuming you got your life insurance couple of years back, if you were to get term insurance now, how much the insurer would charge you for premiums would def be higher because you are now older. So doing this would help you see if it is "wiser" to make a switch.

              There is no textbook answer for this, but I feel it is best if you are able to work around your life insurance by adding term insurance during stages of your life where you are highly depended on.

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                  The wisest time to redeem a life insurance is at the expiry of your life

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                      Brandan Chen

                      Brandan Chen

                      30 Jul 2018

                      Level 9·Financial Planner at Manulife Singapore

                      It really depends on the life insurance policy that you currently hold and your current age group. S...

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