Whole Life Insurance

A mix of coverage and savings components

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Whole Life Insurance
  • Asked by Anonymous

    Brandan Chen
    Brandan Chen, Financial Planner at Manulife Singapore
    Level 5. Genius
    Answered 3d ago
    Insurance is meant to be a tailored solution to fit each individual needs. Term is most cost effective for Death/Disabilty coverage, whereas for CI & ECI coverage, Whole Life may make more sense. Like what Hariz mentioned, its really not about Term or WL but rather what combination would fit both your needs and budget. Perhaps you should speak to a financial advisor that is able to provide you with proper advice. Alternatively, you may always reach out to me via https://www.facebook.com/brandan.chen
  • Asked by Anonymous

    Loh Tat Tian
    Loh Tat Tian, Ex-Financial Advisor, Founder at Singapore Insurance Value Finding
    Level 6. Master
    Answered 2w ago
    I have whole life for 1-2 year annual income coverage, and a term for 5 years annual income which include CI. I do the base WL, and a term top up for high liabilities (between age 30 to 55, where your kids etc are still depending on you). For your case, it depends on your situation.
  • Asked by Anonymous

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

    Top Contributor (Mar)

    Level 7. Grand Master
    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 Anonymous

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

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered on 25 Feb 2019
    To answer your question, you need to look at the total coverage you require. The rule of thumb is around 10 X your Annual Income in the event of Death and 5 X your Annual Income in the event of Illness. Top up accordingly. However, I suggest to skip on the CI coverage provided by the Mindef Aviva Group Term plan as premiums change as you age and their ECI list of conditions covered is not comprehensive.
  • Asked by Anonymous

    Jonathan Chia Guangrong
    Jonathan Chia Guangrong, Fund Manager at JCG Fund
    Level 6. Master
    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
    Level 6. Master
    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
    Level 5. Genius
    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
    Level 4. Prodigy
    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
    Level 4. Prodigy
    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.
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