Limited Pay Policy

Hi Sir,
I am a 25 years old individual contemplating on purchasing an insurance policy.
Limited pay life policy sounds attractive, in a sense, one is able to choose 5, 10, 20 or 25 years in premium payment and subsequently cover till age 65.
My financial consultant recommended me to opt for 20 years in premium payment.
However, I figured that 5 years in premium payment would make the life policy more cost effective
I was introduced to TM Legacy plus. Basic sum assured of $100,000.

Appreciate if you could advise on the
1. pros and cons of the policy
2. the no. of years i should choose for premium payment 
3. whether i should take up the policy.


James

REPLY
Please read my book, Practical Guide on Financial planning (available at www.easysearch.sg/ishop). It tells you what to look out for. Most life insurance policies, including limited payment policies, give a poor return. It is better to buy Term Insurance.

You can read my FAQ on Benefit Illustration, http://www.easysearch.sg/Admin/File.aspx?id=57