Child's first insurance policy
- Thread starter La estrella
- Start date
diymummy
Moderator
Yup mine's AIA plan for my boy. Most plans have 3 tiers. Of course the 3rd tier is the premium so it's the most ex but covers more things. I took all the middle tier. More affordable coz I'm also quite tight currently.
My opinion is accident and hosp plan is enough for kids that age. Next plan don't have to be life. Life can get when they're in teenage years.
Next plan I would get for my boy once I have more funds would be an edu plan. Force me to save for his edu.
Peisei, I left out 1 word and cause the confusion. $50 is CONFIRM enough. :001_302:
Actually, pls buy whole life early unless u dun mind paying when ur kids are grown up. My dad bought for me when I was in my teens and I'm still paying for it like mad!!!!! Terminate not worth it and premium is few thousands a year!
Very pissed off by this! Thankfully my mum got money & helps me to pay half of it cos she knows it's not my fault I'm saddled with it.
Whatever it is tt u buy, it shd not b a burden to ur kids nxt time. The one I bought for my boy will stop payment when he's 18.
Very pissed off by this! Thankfully my mum got money & helps me to pay half of it cos she knows it's not my fault I'm saddled with it.
Whatever it is tt u buy, it shd not b a burden to ur kids nxt time. The one I bought for my boy will stop payment when he's 18.
apollo
Well-Known Member
yup stonston, i'm keen to noe more too.. hw much will it be lik if i buy for my 9mth old ds now? will the price be increasing every yr lik medical insurance?
diymummy
Moderator
What is your definition of whole life insurance? From the description (plan ending at 18 yrs or 24 yrs) it sounds like an endowment plan to me. If it's endowment plan, ie, you pay premiums for a certain amt of years from 10 - 25, then yes, it's good if you can start early because by the time it matures, you can use it for your child's further education. But if that's what you have in mind (child's education) then it's better to get an education plan IMO. Usually such plans, be it endowment or education, comes with some form of coverage eg critical illnesses.
For life insurance, what I understand is that you pay the premiums to cover you in case of death or total permanent disability. For such plans, iirc, it covers you all the way up to the age of 60. The reason for people taking up life insurance is because they have dependants like chidren or elderly parents. Some are investment linked while some are not. Those that're not investment linked have cheaper premiums.
For myself, I only got my life insurance when I was in my 20s. Only 20% of my premiums goes into investments. I bought an endowment/savings plan when I was 18 and it wi mature when I am 44. It covers certain women illnesses.
For life insurance, what I understand is that you pay the premiums to cover you in case of death or total permanent disability. For such plans, iirc, it covers you all the way up to the age of 60. The reason for people taking up life insurance is because they have dependants like chidren or elderly parents. Some are investment linked while some are not. Those that're not investment linked have cheaper premiums.
For myself, I only got my life insurance when I was in my 20s. Only 20% of my premiums goes into investments. I bought an endowment/savings plan when I was 18 and it wi mature when I am 44. It covers certain women illnesses.
Whole Life policy will not increase premium every yr. But the older you buy the more expensive and lesser coverage.
A simple example that does not link to any insurer nor any product in the market: just for simple illustration.
At age 1, with $100 you buy a whole life plan that cover you $50,000 for death. But if you buy at age 21, this $100 can only allow you to buy a whole life plan that cover you $15,000 for death.
Whole life insurance are like what diymummy mention, it cover death or total permanent disability. Some plans will add riders to cover accidental death and critical illness.
Whole life insurance, there are plans out there in the market, as long as you continue to pay your premium it can cover you till 101yrs old.
There are plan that states the premium periods is till 101yrs old.
Which mean even you are at age 100 you still need to pay premium.
Whole life insurance, there are plans out there in the market, you only need to pay for 10, 20yrs, it can cover you till 101yrs old. This is call something like Limited Period Payment.
If you buy at Age 1, you choose to pay for 20yrs only. At age 21, you do not need to pay premium and yet you are cover till you reach 101yrs old.
diymummy
Moderator
Wow... Ok.. I didn't know that there are plans where you can pay only 20 yrs yet cover you for the whole life. I only thought that for most that pay up to a certain amt of years are endowment plans rather than life plans.
But for such plans where you pay for only 20 yrs, is the coverage lower than those which you pay all the way to 101 yrs old?
But for such plans where you pay for only 20 yrs, is the coverage lower than those which you pay all the way to 101 yrs old?
The premiums are higher for paying say 10, 15 or 20 years instead of paying whole life.
For example, my current life plan, I'm paying abt $300 a month for $100K coverage for 10 years as compared to maybe $100+ for paying all the way.
Like what Jiaqing said, my agent explained to us one both types of whole life. Limit payment versus continuous payment. The premium for limited payment may seem higher compared to continuous payment but if you calculate the total premium paid, limited payment is still more worth it. Plus your kids need not be saddled with an insurance product they did not choose to pay for.
Ting, if you are really keen to find out, get an agent who is willing to explain everything to you. Good agents will work within your budget and advise you which is the next type of insurance you should consider once you have the $$$. As I told you, I only started with $50 in cash then slowly increase when income increased. My agent even help me do a detailed overview of all the policies I have, even those from other companies so that we have a holistic view of what is covered and what is not. So we know what is the next one we should get when we have more cash.
Ting, if you are really keen to find out, get an agent who is willing to explain everything to you. Good agents will work within your budget and advise you which is the next type of insurance you should consider once you have the $$$. As I told you, I only started with $50 in cash then slowly increase when income increased. My agent even help me do a detailed overview of all the policies I have, even those from other companies so that we have a holistic view of what is covered and what is not. So we know what is the next one we should get when we have more cash.
diymummy
Moderator
Stonston, is your financial adviser an independent one?
Because for eg, my agent is from Pru so he only discusses the different options that Pru has. My ex-agent is an independent one but she resigned. She cannot offer me products from the big 4 agencies, ie Pru, GE, AIA and NTUC. But she offers me and does a comparison for me with other companies offering insurance eg HSBC, AXA.
So far I've not be able to find an agent which is from a big 4 and does a comparison for me with all the big 4 companies.
Because for eg, my agent is from Pru so he only discusses the different options that Pru has. My ex-agent is an independent one but she resigned. She cannot offer me products from the big 4 agencies, ie Pru, GE, AIA and NTUC. But she offers me and does a comparison for me with other companies offering insurance eg HSBC, AXA.
So far I've not be able to find an agent which is from a big 4 and does a comparison for me with all the big 4 companies.
yup, better to get it early. my parents did not get any policies for me at all and i only started when i'm 21. still paying like crazy now.
Pru and AIA are tied agencies and independent financial advisers are not able to sell the products. However, your agent should be able to advise you on what's available and what you need. Even though I'm a Pru agent, but I myself read up on other companies products to get the ones that I find suits me the best.
Pru and AIA are tied agencies and independent financial advisers are not able to sell the products. However, your agent should be able to advise you on what's available and what you need. Even though I'm a Pru agent, but I myself read up on other companies products to get the ones that I find suits me the best.
She's from AIA. Hb & I did our 'shopping' and found that we still prefer AIA although some of the premiums is abit higher (few dollars per month). Good experience with AIA so far also draw us back to it.
My mum gets hers from an independant agent. My mum also has loads of praises for her agent who is very prompt and efficient. But certain policies my mum got are from companies I've nvr heard before, so I don't really like it?
Yup there is but not much ppl can afford if you want to buy your very first whole life plan as the premium are pretty on the high side.
Imagine, I just start working at age 21, my first policy my agent intro me is whole life plan limited payment and cost me ard $300. I still jump and feel cash tight de.
I find it it is nessarary to have 1 whole life plan that is limited payment and 1 whole life plan that is continous payment.
diymummy
Moderator
Why necessary? If you buy both then you'll be covered twice?
Not covered twice but with more coverage.
Example:
I buy this two plan at Age 21.
1 whole life plan limited payment for 20yrs: Cover me $50,000
1 whole life plan continuous payment: Cover me $50,000
If anything happen to me yesterday aka death, my family will receive $100,000
Example:
I buy this two plan at Age 21.
1 whole life plan limited payment for 20yrs: Cover me $50,000
1 whole life plan continuous payment: Cover me $50,000
At age 65, limited payment plan already complete all payment le. No need to pay so i get to enjoy the coverage but i still need to pay the plan that is continuous payment.
If NOTHING happen to me when i reach 65 (I plan to retire at age 65).
I can choose to surrender that whole life plan continuous payment, since I had make payment for almost 44yrs (65-21=44). I shld have some returns. So that I can use it for retirement.
After I surrender, I dont need to worry abt coverage as I still have 1 whole life plan limited payment that cover me for life.
So you can use 1 for retirement plan and 1 for protection plan for life.
If I only have 1 whole life plan continuous payment, I cant imagine myself that i still need to pay premium when i reach 65.
If I only have 1 whole life plan continuous payment, I cant imagine myself to surrender that plan when i reach 65 and I left nothing behind for my kids or my hubby. When I die, funeral also need $.
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