I said a few times before that we need insurance in life and, for most of us, we also need to invest for a more secure financial future.
However, insurance and investment should be kept separate to make the best use of our limited financial resources.
Buy insurance for the sake of insurance. Don't mix insurance and investment or we could end up paying too much for insurance.
Always ask:
Are you overpaying for insurance?
Many people are paying a significant amount
from their hard-earned money for their insurance but are still severely
underinsured.
It is not unthinkable that
we may need up to $1million coverage of life insurance or more. This is to
provide for our dependents’ living expenses, children’s education and repayment
of outstanding loans if an unexpected death occurs.
Find out
about your life insurance coverage needs using this simple calculator: Click Here
While this coverage seems
like it would need an enormous amount money to pay for, it does not have to cost a
bomb.
For a 35 year old male, looking for $1million Death and Total Permanent
Disability Coverage until 70 years old, the coverage costs $1,749 a year (less than $150 a month) to be paid for 35 years with
term insurance.
If we go with whole life insurance instead of a term insurance, it becomes
very expensive. We will find that we
are not able to sufficiently insure ourselves if we use whole life insurance.
For the same 35 year-old male, $500,000 whole life coverage could cost S$8,250
a year to be paid over 49 years!
Paying more for insurance is not the same as having enough insurance coverage!
Compare what you are currently paying for your insurance
policy against what is currently offered by the different insurers here.
Are you overpaying for the amount of insurance coverage you have? Do you
have sufficient insurance coverage for your loved ones?
Purchasing a term insurance is the only way to
provide sufficient coverage affordably.
Recently,
there has been a huge debate on DIYInsurance’s Facebook page with
insurance agents attacking the stand for Term Life Insurance.
In response,
DIYInsurance, has written an e-book, The Case of Term vs Whole Life
Insurance: A Comprehensive Consumer Guide to explain the stand of advocating for term insurance for consumers.
The must-read
informative ebook details the purpose of insurance and how we can
plan for our life insurance needs. It also highlights the commissions paid to insurance agents and why commissions from whole life insurance could lead to
insurance agents promoting whole life instead of term insurance.
Remember, no one cares more about our money than we do.
DIYInsurance (Do It Your way
Insurance) is Singapore's First Life Insurance
Comparison Web Portal.
Launched in June 2014 by MAS-licensed
financial advisory firm Providend Ltd , DIYInsurance empowers consumers to make
informed decisions about their insurance purchases based on their own agenda.
On the portal, users can easily compare insurance products across
insurers.
DIYInsurance is led by key people with around
2 decades of experience and has benefited more than 110,000 users with the most
honest, independent and competent advice. All staff are salaried-based and not
commissions-based. To provide greater cost savings, clients are rebated 30% of
the salesperson’s commissions.
Posts
Bloggy Award