Thursday, June 11, 2015

Whole Life Insurance

I am excited to talk about whole life insurance as that is something I have planted a huge confident seed in this product, especially it is from Tokio Marine. Here we go!
I have signed up a whole life insurance plan from Asia Life in year 2006 and now Asia Life was bought over by Tokio Marine. The payment term is only 20 years. I have since heard many cases from the olden time that they have to keep paying for the whole life insurance, this is extremely bad. You do not want to keep paying while you are retired. So, 20 years payment term is pretty reasonable.
Again, I have changed my monthly payment into annual payment of S$3,243. With this change, I have a saving of S$124.20 per year, that’s a lot, isn’t it? Take note, S$585 are actually paid for the rider, to cover the critical illness. Sum assured both are at S$150,000.
I have sing the song many times about Tokio Marine that their whole life insurance is the best in the market that they NEVER EVER fail to meet the projected value. Is this really the case?
I have checked my surrender value today and it is S$24,386.97. With 9 years of payment, the projected Surrender value (guaranteed + non-guaranteed) is S$20,958. Wow. It outperforms by S$3,428.97. This is what I am talking about!
You know what, you don’t surrender whole life insurance.
This is my personal philosophy. So, for curiosity, how much I have put in so far?
S$3,243 x 9 years = S$29,187 and yet if I surrender now, I still can get S$24,386.97. That's a lot of money still!
Hey, seriously, honestly, this is too good to be true. This is pure whole life insurance! Unlike term insurance, you get ZERO, of course with the same amount, you can get much larger insurance coverage, I know.
So, what’s my next strategy?
I have shared many times and do not mind to repeat again.
Whole life insurance is for the next generation. Only if I fall into an extreme dire situation, then, I will force to choose to surrender (also at very later age), maybe say age 65. BUT, under normal circumstances, I will let my kid to surrender the whole life insurance for me and you know what I am talking about and that return will be the greatest of all.
And now I am happy, at least for the whole life insurance policy from Tokio Marine.

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