Whole Life Insurance
Asked on 02 Sep 2019
Is it really possible to get $1 million of coverage for only $312 a year?
Top Contributor (Jan)
Yes, you can get it for that amount, however, take note that it is group insurance, so you do not own the policy. Should the policy owner (MINDEF) decide not to work with the insurer, you will lose coverage.
Also, the $1 million of cover is split into $500K Death/TPD and $500K personal accident. Should you pass on naturally, your payout would only be $500K.
If you are still in your 20s, a simple personal term plan covering death/TPD can be obtained for relatively low premiums, covering you till around age 60. Maybe it won't be $312/year depending on your age, but it will still be affordable.
See all 3 comments
03 Sep 2019
04 Sep 2019
The best is if you are able to secure premiums lower than Mindef Aviva Insurance. The first advice is always to get private insurance (be it term/whole life etc) and opt for Mindef Aviva later, when comparing private insurance, since death coverage is more expensive for private cover as you age.
However, if your age is more than 30, the most cost-effective insurance is Mindef Aviva. For CI, most cost-effective may become private.
As always, do shop around to get what you need, DYODD. Most of what I type is a guideline, and to be confirmed with Hard numbers.
Firstly, what is your definition of overpaying?
Secondly, premiums depend on quite a couple of factors: Age, Gender, Smoking Status, Health Status, and the type of plans you think best caters to your needs.
In a nutshell, personal financial planning revolves around 4 key pillars:
1) Health Insurance - cover hospitalisation bills, pre and post hospitalisation treatment and consultation
2) Life Insurance - Provides income protection in the event of Death, Disability, and Critical Illness
3) Retirement Planning - Consists of investments and savings
4) Personal Accident Coverage
At the end of the day, the advisor should be able to explain to you the various types of options available to you to meet both your objective and BUDGET so that you do not think that you are over-paying!
If you would like to find out more, I would suggest you speak to a financial advisor or myself. You may always contact me at https://brandanchen.manulife.sg/
04 Sep 2019