PFF Panel 1
Seedly PFF 2019
National Service (NS)
Asked on 01 Mar 2019
If you're leaning towards cancelling the policy do so after you've gotten in a new coverage. For critical illnesses there is a waiting period for claims.
An alternative would be to do a premium holiday on your ILP. At a younger age, insurance charge is very low and can actually provide you some years of coverage with the funds inside.
Get your health insurance coverage first and then a term plan. We have done plan comparisons on our website before and I'd leave some for you
For term plans, there are ways to fit you a best fit too. If you're keen, drop me an email at [email protected] or look for a qualified adviser.
PS: Learn how to invest your first $1,000 in this tutorial https://youtu.be/pYBrj8xwR54
I'm really no expert on this and the matter complicated since aready begun.
my feeling is that life insurance is a very 'stuctured product' that retail investors have difficulties to really understand. if used as an investment it possibly underperforms ad compared to cheap and large passive indexing ETFs or REIT ETFs.
i wished i saw your question 1 year ago. hope its not too late now. i am happy that you are checking on term life at your age. if you are purely looking for income protection for your family and legacy, term life to age 100 is the big Yes the premium is the lowest at the entry age of 21. with the same amount of premium you are getting for whole life or ILP, the coverage for term life is at least 5 times more for your age. depends on your needs and priorities, if i were you, i will go for term life as there are many other ways of weatlh accumulation then getting an ILP plan that requires you to pay premium throughout policy term with no guarenteed return. hope this advise is not too late. thanks
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 :)
Enhanced IncomeShield Preferred
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