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Buy term life insurance till age 65 or 99?

Wednesday, September 14, 2016


Hi AK.
I asked my insurance agent about Term Life insurance after seeing the post on 1mil coverage on $41/mth.

He suggested to me, "Bro, if u r looking at $1mil, might as well go for till age 99. It's more expensive but at least won't waste the premiums paid and most likely the sum assured will be payable."

Can you advise me on whether to cover till 65 or 99?

I'm 34 this year, married with 1 child. Wife is also working.
Thank you.


Assi AK

Insurance agent also need to tan jia... ;p


Hahahahaha ya that's what I thought.

Cuz I was aiming for 65y.

Assi AK

Waste premium paid? 

You waste premium paid when you buy insurance when you don't need it anymore... ;p

Pay for what you need.


πŸ‘πŸΌ understood. Thank you very much for the reply!

Really enjoy and learn a lot from your blog. 

Especially on cpf issues.

Assi AK

Aiyoh. I anyhow talk to myself de.

For fun and laughter.

Glad you enjoy.

Mortality risk goes up as we age. 

Life insurance becomes a lot more expensive in our golden years. 

It is only reasonable.

Want to be stunned like vegetable? 

Go see how much more we have to pay for term life insurance from ages 65 to 99. 

More shocking than watching a horror movie.

What happens if money not enough to pay for the sky high premium from ages 65 to 99? 

Tell our family to pay? 

Insured to family,

"When I die, the death benefit of $1m will go to all of you. Pay the premium for me, OK?"

Family to insured,

"Wah! What if you live to age 100 and what if we die before you? You think what? Buy insurance is like buying lottery har?"

"You cancel that whole life insurance policy!"

Continue paying for term life insurance when we no longer have dependents in the hope that our family will enjoy a windfall from our death?


Remember, we want to transfer risk to insurance companies but as there is a price to pay for insurance, buy only what we need.

OK lah, if you have money oozing out from your nose and ears, ignore me and go buy whatever you want. 

I am going back to my well.

Related posts:
1. $1 million term life insurance for $41 a month.
2. Term life insurance: How long a term?
"Insurance loses it cost effectiveness after a person is in his 60s and 70s. The cost of life insurance will rise exponentially because the probability of dying also rises exponentially."


AK71 said...

When I was buying a new term life for myself 2 years ago, my mom who was 68 thought of buying too... I told her no need but asked anyway, the premium was 6x or 7x more than mine. That was only for a term of 5 years... Imagine a term of 30 years till 99...

ScOpIoN said...

The last sentence makes you sound like a frog in the well when you are totally opposite of it. Hehe..

Art Collector in SG said...

Recently I've compared term/whole life insurance of 10 most pop companies available in SG.
My view is that Whole Life is crap. Bf 65, you just need to cover by Term. Aft 65, the premium you pay for Whole Life is similar to the premium that you paid for is almost the same as the Sum Assured. So it's meaningless.
Folks you're welcome to do more research to challenge me.

AK71 said...

Hi Scopion,

Alamak. You don't believe me? I really stay in a well like most people. OK, my well might be a bit bigger than others but it is still a well. -.-"

ScOpIoN said...

Haha... You got me wrong. What I'm referring to is δΊ•εΊ•δΉ‹θ›™, which means that you have far more knowledge of finances and retirement then most people here have. Which is why there are so many readers and fans following and asking you for advise. Perhaps we are all truly staying in a well except your well is truly a lot bigger to see more of the sky than we do. Hehe...

Suddenly I realize I'm calling you a frog instead! LOL!

AK71 said...

Hi Scopion,

Yup. I know. LOL.

Tea with AK: A frog in a well.


AK71 said...

Hi AK, Term Life insurance. 20 years policy to 62, vs policy to 65, both non renewable. What's your thoughts if you buy?
Do you have any deciding criteria?

Buy life insurance if we have dependents.
To what age would you have dependents?

AK71 said...

I have identified that I possibly need 1 mil in TPD/Death coverage and 250k in CI.
Two insurance companies have quoted me the following.
(I am 26 years old, office job, male, no health conditions)
Coy A: 1k/annum till 65 years old.
Coy P: 2k/annum till 99 years old.
Should I be considering Coy P if I can afford it? It would be quite a nice lump sum to leave behind for children after I pass away possibly in my old age.
Your finance knowledge is really useful and I really do appreciate your advice that you put up on your blog. Thanks a lot!

I am glad you find my blog useful. :)
I talked to myself about this before. You will find the blog here:

AK71 said...

Reader says...
I will like to seek your advice on a wild idea that I have
I’m currently looking at my family’s insurance
2 very young dependents below 3
I was thinking if I should buy my term policy till age 99 for 1m
In a way to leave legacy for my kids
Sorry not sure if I sound gibberish here
Hope to get some talk from you
I’ve been talking to myself

AK says...
I blogged about this before. πŸ˜‰
Remember, we want to transfer risk to insurance companies but as there is a price to pay for insurance, buy only what we need.

AK71 said...

Aries Yn says...
So if no dependence we should not buy any insurance for protection?
Or should we buy something to cover our old age?

AK says...
If no dependents, you only worry about yourself.

What this means?

If you die, you die.

If you don't die, that is the problem. :p

So, you need H&S (Medishield Life) and you need Critical Illness/Disability coverage.

For old age, retirement funding, the correct insurance product is an Annuity (CPF Life).

Of course, the best insurance is self insurance, Passive Income. ;)

AK71 said...

Life insurance a heavy burden. What to do?

AK71 said...

Raymond Ng says...
Assuming age 35, term insurance up to 99, the premium is $4,119 for 64 yr.
Total cost is $263,616.
If he lives till 90, the total cost is $226,545.
Is the ROI OK?

AK says...
This is insurance lah.
This is not investment hor.
Read my blog carefully. :p
What if he lives to be 100?
Bad AK! Bad AK! :p
What if his dependents die first?
Bad AK! Bad AK! :p

AK71 said...

Siew Mun Kwan says...
At 65-95 assuming children are working, u and spouse has CPFlife and other form of income and no mortages. U need term life to legacy reasons.

AK says
In that situation, term life insurance is no longer a need.
It is a want.
It really isn't the right tool for legacy planning.

AK71 said...

Jack James says...
For all the young families out there , whole life insurance is the best investment ( yes , I call that an investment ) , buy it when your child is born . There is nothing in the earth can beat that return unless it is a Bitcoin . LOL .
Start early is the KEY πŸ”‘. Enjoy the investment journey plus enjoying hefty insurance coverage , too good to be true . Buy !

Rayner Su says...
Best insurance is exercise and eating everything in moderation. Buying $10m worth of insurance and everyday eat junk food, cake, bubble tea doesn't keep your body healthy.

Jack James says...
That’s common sense , bro

AK says...
If we have lots of money sloshing around, we can afford to do things against conventional wisdom and throw common sense out the window without fear. :p

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