Life insurance - past and present

Dear Mr Tan,

I have been following your blog for a number of years and I find that it offers good advice on financial and insurance planning. However, I cannot reconcile your views advising against buying whole life insurance policies to buying term policies. When you were heading NTUC Income, the company was actively promoting whole life insurance policies. Now you are advising against buying whole life policies because of the poor returns. Has something drastically changed ? If so, what has or have changed ? Please kindly enlighten me.

Thank you.

 

REPLY

When I headed NTUC Income, I offered whole life policies that gave a good yield to the policyholders. I bought many of these policies for myself and my family.

If you can find a policy that gives a good yield, you can buy it. But if it gives a poor yield and takes away 40% or more of your future accumulated premiums, you should avoid it. This matter has been covered in my website and blog on many occasions. 

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