Anonymous
Term life to complement Whole life?
Am currently servicing a whole life insurance plan, coverage of 1 year annual income. I feel it is inadequate with my BTO flat coming up. Should I take up a term life plan to complement my whole life plan. If so, how many times my annual income should i be looking at for adequate sum assured? If I am to take up a term life plan, I am thinking of topping up my SAF Group term insurance to get a higher coverage amount and add on the Living Care Plus (for ECI). Is this advisable?
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Loh Tat Tian
05 Apr 2019
Founder at PolicyWoke (We Buy Insurance Policies)
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Hariz Arthur Maloy
31 Mar 2019
Independent Financial Advisor at Promiseland Independent
You can go ahead and get term coverage, but I'll skip on the Living Care Plus rider. It's non comprehensive with only 10 conditions.
A private ECI cover is way better.
How much coverage would be; 10 X Annual Income in the event of Death, and 5 X Annual Income in the event of Critical Illness.
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For your Bto, there is a HPS that is compulsory to be paid, unless you have a personal term life plan (so that you can be exempted from paying that HPS). Group term life cannot be use to exempt from paying HPS.
So Topping up for term may not be required, unless you are also considering to have children etc etc,
in which a lvl term Instead of a decreasing term may be suitable.
Although if your coverage for decreasing term is less than 5 years term, it may be OK to take decreasing term. There are many strategies so it depends on your situation.