Buy term life insurance till age 65 or 99?

Reader:

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.

 

AK:

ROFL

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

Reader:

Hahahahaha ya that's what I thought.

Cuz I was aiming for 65y.

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.

Reader:

👍🏼 understood. Thank you very much for the reply!

Really enjoy and learn a lot from your blog. 

Especially on cpf issues.


 

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?


Macabre.


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."

Use POSB Invest Saver as a war chest?

Reader:
Hi Mr AK,
I would like to ask whether do you have any past blog post regarding POSB Invest Savers scheme as I would like to apply for this scheme so I could save up with the allowances I will be receiving during my NS period.

However, my concern is throughout the long run, lets say there is a recession and there are many good opportunities/companies to invest in and I would like to redeem the units I have in this scheme...

AK:
When we buy into (POSB Invest Saver), we are pooling money for investing in a basket of stocks. 

It has advantages and disadvantages. 

We cannot have our cake and eat it too.

If you are concerned, it could be a better idea to hold on to cash and wait for opportunities. 

Money in an ETF is money invested. 

You should not think of it as a war chest.


(Neither should it be thought of as an emergency fund.)

Related posts:
1. How to get $50K passive income in stocks?
2. POSB Invest Saver account.