Friday, November 26, 2010

Buying Term Insurance

A few consumers have asked me to tell them how they can buy Term Insurance. I asked them to go to my website (www.tankinlian.com/ask.aspx) and search for "Term". There are a few FAQs that help them to find the right premium and to go to the right website. I do not know the answer myself, so I have to make the same search.
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3 comments:

Vincent Sear said...

Buying term insurance is as simple as asking an insurance company, agent or broker for a quotation of what sum assured and term assured you have in mind, then adjust it according to your premium budget.

However, in all these talk about term being the cheaper alternative, I feel that I have to point out something. Term is also life insurance and like whole life and endowment, costs are heavily loaded upfront in what insurance providers call "level" term.

Although for a similar sum assured, term is certainly much cheaper than whole life, dollar for dollar, value for value, they may be about the same.

What's a "level" term? It's paying higher premium at younger age to compensate for paying lower premium at older age, so that the premium may average out the same every year during the term. The upfront loading of commission is still the same as with whole life and endowment policies.

"With profits" policies are just term policies with extra premiums to "participate" in the insurance fund. There's of course, annual renewable term if you shop around and ask for it. The premium increases according to age and a health declaration may be required at every renewal. Most regular premium ILP are based on this.

Once again, I'm not saying which is better or which is worse. It's up to whomsoever interested to find out which is best for oneself, or even none of these is suitable and look for something else.

November 28, 2010 12:18 PM
zhummmeng said...

It seems you have vested interest in wholelife products.Are you an agent or is someone dear to you is an agent?
You have got it all wrong about term and wholelfie too.
The only thing you got it right is both WL and term have a similar structure.
Anyway, please continue to bask in your ignorance. Ignorance is bliss to the insurance agents. Imagine , it is already so hard to 'educate' an expert what more the many clueless man in the street.
Mr. Goh Chok Tong is shaking his head in disbelief.

November 29, 2010 10:01 AM
Vincent Sear said...

Zhummmeng:

I'm still baffled why are you so personal against anyone who doesn't condemn whole life policies. I'm just being neutral, I neither condemn nor advocate.

No, I have no vested interest. If I have, I wouldn't even comment. I'm just sharing my opinion in this blog as TKL is ex-CEO of NTUC Income. I don't claim to know everything. If I'm mistaken on any issue, I'd be glad to stand corrected if you care to share.

I think that it's not appropriate to use personal language here. I don't think the blogowner intends this to be a blog for people to badger over who's cleverer. Just share and learn for mutual benefit.

November 30, 2010 5:26 AM

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