facebookIs it Reasonable or too expensive paying a monthly premium of $349.90 on Wholelife insurance? Need views on my current policy (25 year term) Im still grasping on how these products/policies work πŸ™πŸ‘Œ - Seedly

Advertisement

Anonymous

23 Jun 2021

βˆ™

Insurance

Is it Reasonable or too expensive paying a monthly premium of $349.90 on Wholelife insurance? Need views on my current policy (25 year term) Im still grasping on how these products/policies work πŸ™πŸ‘Œ

I need views πŸ™ on my current Whole Life Insurance Policy, it covers TI/TPD up to the age of 70 (and death)

1) At the end of 25 years how much in premiums i would have paid in total(Following the monthly of $349.90) i calculated its around 105K ? Correct me if im wrong

2) It has Cash Value, if TI/TPD or if no hospitilisation claims were made till aged 70, how do i get back the amount of total premiums paid, without taking a loan from the policy or losing the death benefit sum assured?

Discussion (8)

What are your thoughts?

Nigel Tan

Nigel Tan

23 Jun 2021

Level 7Β·Executive Senior Financial Planner at Great Eastern Life

1) Yes, but if you do claim midway, the premiums would have stopped at that age.

2) You can't withdraw the cash value in the whole life policy without borrowing or surrendering the policy. Its paid out on top of the sum assured in the policy.

Kylie Ng Kai Li

Kylie Ng Kai Li

23 Jun 2021

Level 7Β·Senior Premier Consultant at AIA Insurance Pte Ltd

Hi,

There are 2 types of whole life plans.

1 of it has the option to convert into an annuity (can take out partial amount) upon retirement and another one requires you to surrender the policy fully if you wish to get back the money that you have put in.

Even tho it looks like a β€œsavings plan”, you should not be looking at this as one as it is meant to give your coverage for the rest of your lifetime after paying a limited number of years.

Not sure if it’s considered β€œexpensive” or not as it depends on the coverage that you have and the age that you are buying in.

To address your number 2, there will be cash value as long as there’s there is no claims payout. Hospitalisation is not relevant in this case. So even if you are hospitalised in between, as long as there is no lump sum payout, this policy will continue.

Rule of thumb: Budget within 10% of your annual income for all of your insurances premiums (accident, hospitalisation, death, critical illnesses etc) excluding savings or investment policies.

View 1 replies

1) yes, high. This type of policy is usually expensive, because you are paying for the cash value.

...

Read 3 other comments with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Sign up or login with an email here

Write your thoughts

Advertisement