Asked on 12 Jun 2018
See whether got limited payment options for the whole life plan. Whole life covers you for life and while the premiums might be high, if you can pay it off within a few years while you are still working using limited payment, why not?
As some people point out, WL have CI coverage which is important during your retirement period.
And since you are young, premiums for limited payment is still relatively affordable.
Not asking you to drop term but a WL with limited payment is a very good addition to your insurance mix
18 Jun 2018
I believe in term too - while at a young age, your whole life premiums might be lower, it also means that you have more time to compound your interests!
SInce you are young, and plus u believe in term, you should stick to term. I am also a beliver of term. I buy the necessary insurance protection and the rest I am investing in low risk like STI ETF!
Maybe life insurance isn't the best investment option but a financial institution trick.
better follow with your funds a regular ETF buy and hold strategy.
that way you are your own financial master.
Ask them to give you an actual illustration instead of "maybes" and "tiagong". Compare it with a level term plan of the same amount taking time value of money into account.
There will probably be some fudging about how you are also "investing" but just strip that out and look at guaranteed numbers.
Hi Anon, It's not a question of one over the other.
I believe in getting WL for CI and ECI purposes and a top up of term for death coverage.
The good thing about WL as well is that your death coverage gets inflation adjusted due to the savings element of the plan.
Plus even if you decide to cancel your plan at retirement age, you'll get back more than what you put in. Probably more than twice your total premiums paid.
I am a financial planner with Manulife.
I would suggest that since you are still young, couple your insurance policies with a combination of whole life for critical illness coverage and top up death coverage with term. Reason for doing so is that it may be more cost effective for you to take up a limited pay whole life rather than a term for critical illness coverage
At the end of the day, it boils down to your needs and budget.
If you believe in term, then go term.
Any insurance will be cheaper the younger you buy. Even for term insurance, it will be cheaper if you buy younger.