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Life Insurance with ILP or Term


Sorrow
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coverage of around 300K from death till dismemberment etc..

 

paying around 5k yearly with yearly cashback of 2500 after 3rd year.

 

but i went through my current insurance, i have an aviva term insurance (SAF) which pays nearly the same amount of coverage but without investment elements

 

like what the bros here say, i doubt i'll need the cashback as I'm doing my own investments, and the insurance expires 25 years later....which isn't worthwhile if i renew at age 54...

 

 

bro, i think u bought an endowment plan man...

 

term and ILPs dun give u cashback every few years one....

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bro, i think u bought an endowment plan man...

 

term and ILPs dun give u cashback every few years one....

 

izzit endownment and life together?? sorry sorry sorry abit blurz man... coz i think if i invest myself, den i aso wouldn't worry about money being locked in for too long a time less the life portion part but if its endownment, den i gonna cancel after the premium paid is up... no point paying for something which i myself can do

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It depends on what you want actually, usually term cover till certain age, life and ILP can cover till 100

 

yeah i understand but what i bought, the policy term is 25 years oni...so if looking 20 years down the road... i doubt i wan to be half worrying about whether i can pay and the other half worrying what happens at age 54....which i believe the premium is gonna kill me

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Actually sometimes insurance agent don't get "so much" of a commission as what comsumers think. More importantly is what you want to do with your planning.

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when agents try to sell u ILP, they make it sound like it is super attractive. no need to pay after eg. 20 years. and u still get protection your whole life.

it is not exactly 100% true. there is no free lunch in this world.

 

what an ex agent told me is that there is a service charge or something every month u need to pay, and it is deducted from ur premium. so imagine after 20yrs u stop paying, how they maintain ur plan? they deduct from whatever $ u have left inside or have made from the unit trust. the "service charge" increases as u age. so when u r 50, 60yrs old, they deduct alot of $$. eventually, ur ILP is empty.

 

 

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when agents try to sell u ILP, they make it sound like it is super attractive. no need to pay after eg. 20 years. and u still get protection your whole life.

it is not exactly 100% true. there is no free lunch in this world.

 

what an ex agent told me is that there is a service charge or something every month u need to pay, and it is deducted from ur premium. so imagine after 20yrs u stop paying, how they maintain ur plan? they deduct from whatever $ u have left inside or have made from the unit trust. the "service charge" increases as u age. so when u r 50, 60yrs old, they deduct alot of $$. eventually, ur ILP is empty.

 

but how much would that be?? considering i wouldn't want them to aso sucker me till the day i die...i think i can live with those pay 25 years covered for life thing rather than the potential prob i may be facing now when my insurance expires at 54 and i have to renew it by then

Edited by Sorrow
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but how much would that be?? considering i wouldn't want them to aso sucker me till the day i die...i think i can live with those pay 25 years covered for life thing rather than the potential prob i may be facing now when my insurance expires at 54 and i have to renew it by then

 

juz to add that i'm NOT blaming my agent whom is my fren for this as i'm the one signing on the dotted line myself, just want to create awareness for people who may be planning for a life policy at a certain point in life...so as not to make the same blunder like me...

 

 

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coverage of around 300K from death till dismemberment etc..

 

paying around 5k yearly with yearly cashback of 2500 after 3rd year.

 

but i went through my current insurance, i have an aviva term insurance (SAF) which pays nearly the same amount of coverage but without investment elements

 

like what the bros here say, i doubt i'll need the cashback as I'm doing my own investments, and the insurance expires 25 years later....which isn't worthwhile if i renew at age 54...

 

Oh ... premium $5K/yr and get cashback of $2.5K/yr after the 2nd yr.

 

This is NOT just a pure term but an "anticipated endowment + term".

 

So effectively, your premium becomes $2.5K from 3rd year onwards.

 

Basically, you get $300K coverage and if I'm not wrong .... at the end of 25yrs ... you'll have about $60K back? Please confirm.

 

Ok ... in conclusion, if the calculations above is correct ... basically you get "free" insurance of $300K for 25yrs.

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izzit endownment and life together?? sorry sorry sorry abit blurz man... coz i think if i invest myself, den i aso wouldn't worry about money being locked in for too long a time less the life portion part but if its endownment, den i gonna cancel after the premium paid is up... no point paying for something which i myself can do

 

 

chances are, it is...

 

why dun u call the insurance company's customer service number?

 

then u can explore your options after speaking to them. that is if ur really certain you don't want this policy lah.

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i have that PruShield thing, now is can only wait till next year before i cancel the policy for some of the elements i don't need as i had paid a full year's premium. sadzzz

 

Keep the PruShield. If possible, do a medical checkup and if clean slat, go for AIA Health Shield or Aviva My Shield Plan.

 

As for the rest of the prudential policy package, you have to decide for yourself.

 

Cheer up bro! [wave]

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Neutral Newbie

well...just bought a plan, seems that the coverage is 25 years only which i will only be 54, need to renew at that point which i think will be super expensive..so i was thinking, better to terminate now since its only the first year.

 

guess to trusting to a fren is aso one way to get urself killed

 

 

What is the plan that you have bought? Is it an Endowment plan for 25 Years? If Yes, the coverage will definately will be low as its focus is on Savings. If you want to focus on Protection for Death, Disability, Critical Illness, I will advise you to plan for a Life Insurance instead.

You may call me for advise, I can be of your help. 98563927.

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depends on what is the reason for the additional insurance.

If you want to set aside $$ for kids education or a alternative saving plan. Then you can consider ILP, if you dun see yourself taking out the $$ anytime within the period.

 

If you just got a mortgage loan or other form of big loan, that you afraid that your family may not be able to service in the event of your death / disability, then term is the way to go.

 

Just gotten myself a non-reducing 5-yr term insurance $400+ p.a. for 600k, transferable, guarantee renewable until 65.

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What is the plan that you have bought? Is it an Endowment plan for 25 Years? If Yes, the coverage will definately will be low as its focus is on Savings. If you want to focus on Protection for Death, Disability, Critical Illness, I will advise you to plan for a Life Insurance instead.

You may call me for advise, I can be of your help. 98563927.

 

You do realize you are replying to a 2009 post do you?!

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