Thursday, July 17, 2008

Buy critical illness for 20 years only

Hi, Mr Tan

I'm currently 34 years old (male). I am interested to obtain a $200k coverage in critical illness for life as I'm concerned about the rising medical costs as I grow older.

My financial adviser has advised me to buy LifeSecure (Limited pay plan) that requires me to pay 20 years' of premium. Thereafter, I need not pay anymore premium.

I would be grateful if you could advise if there are term plans in the market that would provide coverage for critical illness for life. And what is the premium like?

REPLY

In my view, critical illness cover for a lifetime is very expensive and unnecessary. You should buy this cover for 20 years. If you save the remainder of the premium in a low cost investment fund, your accumulated savings can be more than the sum assured at the end of 20 years.

Read this FAQ
http://www.tankinlian.com/faq/choice.html