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Old 02-04-2020, 12:37 PM
kenneth.lim kenneth.lim is offline
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Quote:
Originally Posted by Unregistered View Post
Would like to ask people here regarding health insurance. I earn 5k a month, take home around 4k. I spend around 900 dollars on all my health insurance (including hospitalization, term and whole life plans). I have a whole life policy, the Aviva mindef term plan, a hospitalization plan (covers up to private hospital), as well as 2 different critical illness coverage plans.

I would like to ask if that is about right, or am I spending too much? (As at the end of the day, other than my whole life plan, there is no cash value to all my other policies..)
Personally, I think too much.

You really only need a hospitalisation plan to cover hospital cost and a term plan that covers death/terminal illness (then just attach riders that accelerate/advance the payout in the event of TPD and CI).

You don't need a whole life plan if you know how to invest and because usually by 70 (which most term plan last until), your liabilities should be lower already (kids all grown up and house all paid for etc) so you don't need a big amount after 70.

Term plans are cheaper because you only pay for the cost of insurance. Of course, they also have no cash value so if you don't die, get TPD, CI or whatever it covers within the policy term then you get nothing.

All those plans like endowment and whole life which have cash value, you are actually paying for cost of insurance plus an investment component (basically giving insurer to help you invest then they take a bit and give you a bit). So, if you know how to invest yourself, you might as well just get a term plan and do the investment portion on your own.
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