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Anonymous

23 Sep 2020

∙

Insurance: is there any concentration risk if I buy all my whole life insurance for myself and dependents (children) with the same insurance company?

Say I already have 500k whole life insurance sum assured for myself with company A, is it wise to go for a 500k whole life coverage for my baby son at company A or should I go for another insurance company? I understand there is a cap for SDIC protection. For different life assured, are there 2 different caps? Or the 2 x 500k falls under 1 aggregated cap?

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Elijah Lee

23 Sep 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

The protection is based on sum assured/surrender value per life assured per insurer.

Thus if you have $500K under insurer A and your baby has $500K sum assured as well, there won't be any issues as the caps apply to the individual and not collectively.

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Frankie Rappaport

23 Sep 2020

I would like to present the contrarian view: the insurance companies could profit more from it than you and your family

defense:

https://blog.massmutual.com/post/whole-life-ins...

critique:

https://momanddadmoney.com/why-whole-life-insur...

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