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Anonymous
I've read various blogs and articles on term vs whole, and I've decided to go for whole now because investing is daunting. I need the early critical illness rider because of family history. I can't seem to find any independent comparisons of various whole life plans. How much should the SA be, how much should premiums look like, and which companies have better deals? 24, F
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Hariz Arthur Maloy
17 Oct 2018
Independent Financial Advisor at Promiseland Independent
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Brandan Chen
12 Oct 2018
Financial Planner at Manulife Singapore
Hi,
It great that you are thinking of getting yourself insured. As for whole life plans, you may speak to a financial advisor to have a better understanding of the differences between various insurers.
In terms of SA, I would recommend to have at least 3 to 5 times of your annual salary for critical illness coverage as a whole. Within that, perhaps to apportion about 2 times annual salary specifically for early stage coverage. Reason being so is that when one is diagnosed with an early stage illness, chances are is that the doctor would recommend that you spend more time resting, and typically it will take about 1 to 2 years where one takes things slower. The payout will then supplement the loss of income to cover your daily expenses.
Do also make sure that you get coverage for hospitalisation too!
Free feel to PM me at https://www.facebook.com/brandan.chen should you like to find out more!
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Hi Anon!
Getting a WL + ECI would cost about 2-2.5% of the Sum Assured per year. A 100k cover would be about 2-2.5k per year for 25 years.
If you want an independent comparison, you should look at speaking with an Independent Financial Advisor like myself.
Some rules of thumb for you to consider:
You should get:
1) 10-15 X Your Annual Income in the event of Death
2) 3-5 X Your Annual Income in the event of Critical Illness
I would personally get the ECI as WL and the remaining Death Cover as Term to balance out coverage with budget and cashflow.
So if you're earning 50K per year, I would recommend 150K WL + ECI, and 500K in Term till Retirement Age. This would cost in total about 7-8% of your annual income in insurance premiums.
I"m always available for a chat through my personal or business links on my profile. Would be glad to be of assistance.