facebookMy insurance agent keeps telling me term is more expensive then whole life in the short term. Paying about 2.6k a year for whole life with ci and eci. Is is true that term is more expensive? - Seedly

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Anonymous

12 Jun 2019

Events

My insurance agent keeps telling me term is more expensive then whole life in the short term. Paying about 2.6k a year for whole life with ci and eci. Is is true that term is more expensive?

Discussion (8)

What are your thoughts?

The premiums for term insurance increase with age, so your total premiums paid if you have term insurance for your entire life may be higher in total vs. the total sum paid for whole life / limited-pay whole life plans.

So it depends on what you want to cover. Cos not everyone buys term insurance for their entire life - when you're 60+, your parents are likely to no longer be around and your children are already grown up and earning income, so you don't have to support them anymore. Thus many people who buy term would consider to reduce their life insurance coverage at this stage onwards.

Buying term during the stages of your life where you have the highest financial risks and dependents to support = the cheaper option vs. whole life. Even better if you can invest the difference.

Eric Chia

Eric Chia

12 Jun 2019

Level 7·Senior Financial Consultant at Prudential

Hi there, generally speaking, term is more expensive (in the absolute amount of premiums paid) than whole life if any of the following happens:

  • the term plan sum assured is very high, like $500k
  • the term plan is sized to cover you beyond 65yo
  • you are pretty old, like at least 45yo when you receive the quote to buy a term plan
Allan Lee

Allan Lee

09 Apr 2019

Level 3·Financial Planner at Axa Singapore

You might want to consider term plan which covers you till age 65 (Means you got to pay premium from...

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