Asked on 08 Aug 2020
Going to start undergrad school (Law, if this info helps idk)
Have 50k in cash savings, will be on scholarship 6k allowance PA
Pruflexi 4.8k PA
Prutriple protect (term) 1.2k a year
pruman 1k a year
prulife multiplier (whole life) 3.2k year, since 2017 (300k Sum assured till 75)
I feel like dropping prulife as it is a heavy burden and I feel I will upgrade later on anyways. Will also pay my own uni expenses and maybe tutoring on the side minimally
Whole life are inferior investment products
"The Bottom Line Using permanent life insurance as an investment might make sense for certain high net-worth individuals looking to minimize estate taxes. But for the average person, buying term and investing the difference is usually the better option."
" Of course, when something sounds too good to be true, it usually is, and this is no exception. Life insurance is typically not a good investment and in most cases you’ll be better off avoiding it. "
22 Aug 2020
There's so many "Financial Advisors" here talking about whole life. I see no benefit of getting a Whole Life plan. I've tried to search for it. It's very easy to tempt you with the "CASH VALUE" and "Pay 20 years only" features of whole life. The only benefit of whole life plan is that your "Financial Advisor" gets to enjoy his holiday with the commission from your WL plan. Is whole life still better for someone who doesn't bother about investing themselves?
Keep in mind, no one here is going to pay you for critical illness in the event of diagnosis. As such, I would avoid making decisions without first understanding your cash flow and needs.
If you do the numbers on whole life and term, and you add critical illness, the term makes little sense. Invest the rest has no guaranteed level, unlike participating funds. The industry has evolved and the landscape has changed. The narrative needs to change. Even IFAs are advocating whole life for CI - the reason is simple, the numbers work.
You are paying 7.2k on insurance premiums for protection, I will expect that your annual income to be at least 6,000 per month after CPF deduction, meaning your gross should be at least $7,500.
If that is not happening, you are likely overpaying for insurance.
Pruman is not compulsory. It is a product that is geared for protection for male illnesses and should be treated as a supplement. PruTriple Protect and PruLife serve very different objectives.
To address your health lock-in factor. You can simply use PruTriple Protect. It has a provision of conversion after 5 years where if no claims are made, you can do a conversion to a comparable term or whole life policy. The only reason why you want to lock it in today is that the premiums are cheaper today as compared to the time of conversion. Health lock-in factors can be cheaply executed and do not require a large sum today for an income in the future which is not guaranteed.
But if your want is simply to buy insurance because you are very concerned about health issues then stay in your purchase. Remember, no one here is going to give you money at that event. You make your own bed and live with it.
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Sam Wai Git, Raffles Health Advisor at Raffles Health Insurance
Updated on 09 Sep 2020
Seems like your agent had been enjoying squeezing you dry.
You are paying more than what you "earn"...
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