Term Life Insurance

Purely coverage focused product

ASK A QUESTION
Term Life Insurance
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
    Top Contributor

    Top Contributor (Feb)

    378 Answers, 632 Upvotes
    Answered 4d ago
    We've discussed this quite a few times already but here's my answer again. :) You purchase insurance for your newborn not because anyone is depending on his income, but if he falls ill, a parent will need to stop work and hire a domestic worker to help take care of the family and other responsibilities. You buy insurance to cover in the event of illness of the child as additional expenses and a potential loss of income for the family will be incurred. Also, at a young age, a limited pay Whole Life plan for the child may make more sense financially. And if you get a term only, your child might not be able to get insured later in life if there are any complications or illness. A WL plans locks his insurability at least. I'd look at getting around 100 to 150k of CI coverage for life for a newborn. If you'd like a comparison or a deeper understanding of what other risks you may need to manage for a newborn, you can always drop me a message on FB. All the best!
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
    Top Contributor

    Top Contributor (Feb)

    378 Answers, 632 Upvotes
    Answered on 06 Feb 2019
    Instead of looking at premiums, look at coverage. You should have 10-15X your annual income as Life Cover, 3-5X your annual income as income protection (CI). If you're making 50k a year, that's 500-750K in Life Cover and 150-250K in CI coverage. If you're covered for more, you may want to decrease your cover. Typically, if you're covered for the above amounts, you should be paying 8-12% of your monthly income in life insurance.
  • Asked by Koe Wei Loong

    Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic
    Top Contributor

    Top Contributor (Feb)

    404 Answers, 543 Upvotes
    Answered 4w ago
    Will you still be working to take care of your family after 65? If yes, you should still have term insurance.
  • Asked by Anonymous

    Jonathan Chia Guangrong
    Jonathan Chia Guangrong, Fund Manager at JCG Fund
    Top Contributor

    Top Contributor (Feb)

    391 Answers, 552 Upvotes
    Answered on 04 Feb 2019
    From what I know the waiting period is one year for cases of suicide. Depending on the contract wording the death benefit may pay out or the policy may be void and the premiums paid will be 'refunded' to the estate. Need to fall back on the contract wording for claims assessment.
  • Asked by Justin Tan

    Jonathan Chia Guangrong
    Jonathan Chia Guangrong, Fund Manager at JCG Fund
    Top Contributor

    Top Contributor (Feb)

    391 Answers, 552 Upvotes
    Answered on 28 Jan 2019
    Depending on the insurer and current status of the condition, likely to be offered non standard terms. You may wish to do a preliminary underwriting application with the insurer of your choice to see what terms will be offered. This way, you won't have a 'black mark' when asked if you have been offered non standard terms on other applications
  • Asked by Anonymous

    Brandan Chen
    Brandan Chen, Financial Planner at Manulife Singapore
    156 Answers, 228 Upvotes
    Answered on 29 Jan 2019
    Would encourage you to upgrade your Hospitalisation to minimally Private or Class A ward if you are able to afford it! As for CI, there are 3 main options available: 1) Whole Life Plan 2) Term Plan 3) Multi-Pay CI plan It is also important to look at ECI coverage if you have the budget. In terms of how much to cover, perhaps you can consider covering about 1 - 2 times of your annual Income in ECI and overall 5 times of your annual income in CI. It is best that you sit through with a financial advisor that is able to explain the available options so as to cater to your needs and budget. Alternatively, you may also drop me a PM on facebook https://www.facebook.com/brandan.chen or arrange for a chat with me via the following website: https://brandanchen.manulife.sg/
  • Asked by Anonymous

    Christopher Tan
    Christopher Tan, Executive Director at MoneyOwl Private limited
    49 Answers, 95 Upvotes
    Answered on 24 Jan 2019
    Hi anonymous, thank you for asking. Luke Ho below has given a very comprehensive answer to your question and I have nothing more to add, Do note that when you compare your insurance on www.moneyowl.com.sg, the credit rating of the insurers are shown as well. As for the rest of the points that Luke has mentioned, if one sees our client adviser for a discussion, the advisers will also share with your some of this observations as well. They are not on the robo because some of the observations such as speed of claim, claim experience can be pretty subjective and it differs from case to case. It is like we all experience good or bad services from all the different telcos. It is very difficult to pinpoint which Telcos give the best service. Hope our collective answers helped!
  • Asked by Anonymous

    Christopher Tan
    Christopher Tan, Executive Director at MoneyOwl Private limited
    49 Answers, 95 Upvotes
    Answered on 24 Jan 2019
    Hi anonymous, thank you for the question. My conviction is that financial planning need not be complicated and you can actually DIY if you: 1. Take time to learn how to do it 2. You have the time to do it 3. You have the interest to do it You save money by not using an adviser. So with a limit time and space, let me provide some simple guidance: 1. If you cannot save, you cannot invest - Start first by having a budget. How to do a simple budget a. Estimate your monthly income b. Set a target saving amount per month c. Income - savings = How much you can spend d. Divide your spending into fixed and variable expenses e. For your fixed expenses such as mortgage, insurance premiums etc, set it aside every month (maybe into a separate account) and Giro off from this account to pay your fixed expenses f. For your variable expenses, pay using cash or by debit card to avoid overspending 2. Your monthly target savings should help you accumulate up to 3-6 months of your monthly expenses. This is known as your emergency fund. This monies should never be invested but you can put it in high interest savings account (such as DBS Multiplier, UOB One, OCBC 360), FD, or SSBs 3. Cover yourself with sufficient insurance. The 3 must have insurances are: a. Hospital Plan - such as Medishield Life or an IP b. A low cost term plan to protect against loss of income due to death, disability or a critical illness) c. An optional critical illness plan to pay for alternative treatment that cannot be paid via a hospital plan. (You can visit www.moneyowl.com.sg to estimate your insurance needs and estimate the premiums) 4. Invest using low cost funds - low cost means total expense ratio(TER) is about 0.5% p.a. In investments, cost eats into returns. You can use ETFs that track the index or when MoneyOwl is ready to offer investment services in March, you can gain access into Dimensional Funds at no sales charges and low TER. 5. Write a simple will. MoneyOwl will offer complimentary will writing service very soon. Hope this helps.
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
    Top Contributor

    Top Contributor (Feb)

    378 Answers, 632 Upvotes
    Answered on 23 Jan 2019
    Not necessary but recommended. This is because of the the free health checkup that comes with it. It's not also necessarily because of saving money, but more of the fact that you are reminded to go every year if not wasted. This makes sure that if anything were to come up, you find out early and can get treated before it gets worse. All the female specific plans end at age 65. But for general CI (which also covers female CI), I would recommend either Whole of Life or until life expectancy age, which is 85 for females. Also another pro to the female specific plans that are not in general CI would be the female surgeries benefit for masectomies and other reconstruction benefit which I've told helps in confidence and morale after experiencing such a traumatic experience. I've been speaking extensively about this since August last year, and could help you understand in clearer detail why you can choose to take or ignore this.
See more questions