I'm 21, getting out of NS and into university. I currently have a whole life plan and ILP. Should I consider canceling the ILP, switching to term life and getting health insurance? What type of insurance should I get? - Seedly
 

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Seedly PFF 2019

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Asked by Anonymous

Asked on 01 Mar 2019

I'm 21, getting out of NS and into university. I currently have a whole life plan and ILP. Should I consider canceling the ILP, switching to term life and getting health insurance? What type of insurance should I get?

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Jean
Jean
Level 3. Wonderkid
Updated on 01 Mar 2019

Hello!

I would recommend you to keep the whole life plan because you probably have gotten it when you’re younger and premiums are fixed at a low rate. Cash values have also been accumulating in the policy. Although switching to term life is relatively cheaper, the downside is that it only covers you till a certain age. If you would like to buy a new plan by then, the premiums will be high.

It will be good to upgrade your health insurance (referring to hospital plan/Medishield in this case) to private medical insurance where your medical bills can be claimed should you visit private hospitals and government hospitals (A wards). Also, do check whether you have early critical illness coverage because even though hospital plans cover treatment for example, cancer, you will still need cash for your own/family’s expenses.

With regard to the ILP, do understand that the main purpose of the plan is to protect your risk while giving you some flexibility in the money portion (i.e premium holiday, withdrawals etc). If you plan to earn from the investment portion from this plan, it might not be suitable for you since part of the premiums is used to fund for protection.

For term life, you can consider continuing your group term life from AVIVA which gives you pretty high coverage at a low premium!

Sorry if this isn’t comprehensive enough, but I hope this helps :)

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