Whole Life Insurance, love it !

In year 2021, we spent a good sum of S$23,048.36 for insurance for a household of three.

I want to talk about the beauty of whole life insurance here.

I have fully paid up the whole life insurance for my son as I shorten the payment term to 5 years only. It is a done deal. :)

As for our own whole life insurance plan of 20 years payment, we will fully settle the whole life insurance plans in 5 years time. 

What is the strategy of our whole life insurance plan? It is simple, only 2 options.

Option 1:

We should never surrender the whole life insurance plan. That's insurance, dude!

It is meant to pass on the death benefits sum to your loved one once you are dead. 

Option 2:

If you have no loved one or you want to surrender the plan for future retirement income, you can do so but make sure you surrender the whole life insurance plan as late as possible. How late?

At the age of 55, you can start to withdraw CPF monies as much as you want after setting aside Full Retirement Sum (FRS) to RA (Retirement Account). Hence, you definitely DO NOT WANT to surrender at such age.

From the age of 65, you start to receive CPF LIFE monthly payout until death. 

S$2,000 a month for each of us (FRS sum will be S$250,000 at our age of 55).

From the age 62 to 71, you also start to withdraw monies from your SRS account, spanning 10 years horizon. 

Hence, in my opinion, the best time to surrender the whole life insurance plan is at the age of 72 and above if you really do not want to pass on the death benefits to your loved one. That's fine. 

What's the surrender value ?

My son, at the age of 71, he will receive cash payout of S$444,843.

At my age of 71, I will receive cash payout of S$195,580.

At my wife age of 72, she will receive cash payout of S$150,027.

Me and my wife total payout of S$345,607 is a tidy sum at the age of 71/72. 

Not one cent more, not one cent less. That's Tokio Marine. 

In addition, there is also one Whole Life Insurance from Prudential with a surrender value of S$130,206 at her age of 73. That brings to the total of S$475,813 payout from Whole Life Insurance. 

Why so many people still dislike Whole Life Insurance?

Just because of the phrase "buy term & invest the rest" will eliminate all the goodness above?

I don't think so.

I can always still buy term insurance anytime to boost up the coverage if I want to. 

Invest the rest? I have already done so.

That's my strategy of Whole Life Insurance, love it!