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Pang Zhe Liang
21 Oct 2023
Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)
Generally, it depends on your needs and how your needs have evolved over time. Additionally, it also depends on how your Insurance Agent or Financial Advisor helped you to plan your insurance coverage over time.
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In order to execute the option to increase your insurance coverage through your existing term insurance policy, there are some terms and conditions to fulfil, e.g. to meet certain life stage event like welcoming the birth of your child. Furthermore, there is a maximum limit on how much you can increase your coverage without going through the medical underwriting process.
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As can be seen, utilising this option may not be possible all the time. For example, if you don't meet the criteria for the life stage event but still wish to increase your insurance coverage, then the other option would be to purchase a separate insurance policy.
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Secondly, in most cases, a term insurance policy has a fixed coverage period, e.g. till age 65. If you choose to increase the coverage from the existing term insurance policy, then the entire insurance coverage will still end at age 65. Similarly, this may not be your intended intention. For instance, you may wish to enjoy the insurance coverage till age 70 instead. In this case, you will have to purchase a separate term insurance policy to meet your needs.
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Summing up, there are various reasons as to whether it makes sense to increase the insurance coverage from your existing insurance policy, or to purchase a separate insurance policy. If you have further concerns on this matter, I would encourage you to speak to your Insurance Agent to conduct a comprehensive insurance portfolio review. This is to ensure that you are sufficiently covered for your needs.
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Hi Mei! It depends on which aspect you wish to cover for, eg for your dependants? If so, then yes it...
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Hi Mei,
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Yes, there is term plans that allows you to convert from the term to life. And to my knowledge, some without health qns asked. However, the qn to whether if its worth it depends on the cilent. Ultimately, there is a lot of factors involved in making every decision. It'd be best to discuss this with your financial advisor.
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Should you need any help with any other qns, free feel to let me know!