Insurance products recommended to me
Interestingly, these 2 products are the ones pushed to me by 2 different financial advisers. They are highly recommended products as according to them using the cost benefit analysis. Of cos the are, when compared to Prudential or AIA. Just very interesting to find this article from Tan Kin Lian’s blog. Still reading up on the FAQ and find it beneficial as it does give a non-bias advice.
Hi Mr. Tan
My husband and I are doing our reviews of our profile. My financial planner recently recommends that we increase our critical illness coverage to at least $125K, via a limited pay term insurance. The two products recommended are Asia Life TM Legacy and NTUC Income Vivolife.
I have read your FAQ and I’m not sure if we should be increasing the critical illness coverage by another $100K. We have two young children, that’s also the reason why we want to ensure at least we are sufficiently covered.
REPLYBoth of these products are high cost products that give poor value to the consumer. I advice people to buy a 20 year Level Term insurance, and to invest the difference in a low cost fund.
You can see some examples of the difference in the FAQs in my blog:
www.tankinlian.com/faq
http://www.tankinlian.com/faq/true.html
http://www.tankinlian.com/faq/age65.html
I find this link on term insurance very insightful. The chart do give a clearer understanding on how term insurance is priced at various age.
I can see why he recommended decreasing life insurance with investment to go along. Not a bad choice. Though people would like to also see some form of return after the years. I would prefer a whole life, decreasing life term and investment combination.
What I can see from the trend is that many actually over-insured, under-insured or bet on the insurance company via ILP. I prefer to draw a line between investment and insurance to keep things simple.
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