Sunday, October 21, 2012

Classical example of life insurance premium

If you read The Sunday Times today on October 21, 2012,  you will find out the interviewee at "Me and My Money" section is a couple who work at Great Eastern. It is very rare for them to publish two photos for the interview section, I noticed.

Before I talk about the insurance, shall we talk about the private property first? It is obvious that the private condo shown in the photo below is Baywater condo, which they had purchased. What amazed me is the price they paid for the unit !

They had purchased a three-bedroom , about 1,300 sq ft, at Baywater  at whopping S$1.31 million ! What ?! My relative bought a 2 bedroom in the same condo, about 1,033 sq ft, only at S$480,000 in year 2006, okay, that's year 2006... so, what's the current price for 2 bedroom ?

If you do a quick search at URA website, the 2 bedroom at Baywater now had been sold at S$965,000 ! Oh my goodness, that's 100% capital appreciation in 6 years. Wow, you are half a million richer by now !

Are you one of them who bought the private condo in Singapore at sky rocket high price now ?

Hey, that's not the reason I blog today. I am talking about life insurance premium.

Take a look at their reply below, this gentleman, age 35, is paying S$15,000 per annum for his own policies for around S$500,000 life coverage. He didn't mention how many years he will need to pay (but definitely not 5 years only , right ?). But, if you start young for your children, I paid S$6,602 per year for 5 years at Tokio Marine ( That's only S$33,010 to cover the whole life for the same sum assured of S$500,000 too ! That is a huge difference, isn't it ? Cheers.

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