In life, disaster often strikes when you least expect it. Of course, no one is ever prepared for a disaster but having life insurance coverage would help to put your mind at ease that your financial losses are mitigated.
During the National Day week, my family bought two life insurance policies. One was NTUC Income Limited Pay Revosave and the other was AIA Triple Critical Cover. The decision to strengthen my family’s protection and savings arose after a strategic life insurance review with my wife.
As a finance blogger, I always advocate my readers to do annual review on their life insurance coverage. This is because family situations often change, so the most prudent approach is to do timely review to ensure that the interests of your family are well-taken care of.
In 2016, I wrote that I upgraded my family health insurance to private ward class and also bought full riders for the whole family. Boy, am I glad that I did so. Because in March 2018, Singapore government mandated the removal of full riders for new applicants of private health shields. It really drives home the importance of proactively managing my life insurance portfolio.
There are many who questioned the role of whole life insurance and there are even finance bloggers who claimed that this financial product is a scam. In my view, this is definitely not true.
In 2011, I went through a financial challenging period and I would not have made it through without the help of my two whole life insurance policies. I guess sometimes you need to go through a major ordeal in life in order to appreciate the beauty of something. Whole life insurance is one of those things that you would take it for granted. All in all, it was truly a humbling experience for me.
Nevertheless, I need to reiterate that this article is not meant to be a financial advice nor am I inducing readers to buy any life insurance products. This article is merely to share my insights on life insurance. As I do not work in the finance or insurance industry, the opinions are based on my experiences and perspectives. If you have doubts about life insurance policies, please do consult a licensed financial advisor. If there are any inaccuracies, please feel free to point out to me.
My life insurance journey
I bought my first life insurance policy from NTUC Income when I was in the army. My late father’s devastating stroke had made me realized the importance of life insurance. Without income, my family went through a challenging period of time trying to make ends meet because Dad was the sole breadwinner back then. It was the longest winter for my family. After experiencing that dark chapter of my life, I am resolved not to let my spouse and children go through such dramatizing financial situation.
Time really flies. It has been 20 years. Along the journey, I have earned a degree, built a career in aviation, started a family and now planning for my retirement. My family situation had of course evolved but I still keep my first life insurance policy bought from NTUC Income. Not only that. I have also purchased additional four more NTUC Income policies for myself and three more for my family.
Buy term and invest the rest?
Many financial practitioners and bloggers advocate the strategy of buying term and investing the rest. I must say that I do not disagree with this approach because the objective of life insurance policy is primarily [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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