For a long time, consumers have been underinsured due to the following reasons:
- The life insurance industry is more interested in investment and saving products instead of pure insurance. In the first half of 2016, the life insurance industry paid out only 14.3% due to death, critical illness and disability claims. The remaining 85.7% was for policies that mature. (Source: Life insurance industry's strong first half results bolstered by significant growth in second quarter 2016.)
- Troublesome underwriting. Consumers and advisers find the application for pure insurance to be troublesome because of more administration work such as medication examinations and sometimes the need to declare asset, liabilities, salary, etc to the insurer.
- Consumers are not advised properly by their financial advisers.
What can we do to keep insurance protection affordable? I urge the insurance industry to make a more concerted effort to address this. Part of the problem lies in the conventional practice of insurers in bundling the savings and protection elements into what is known as Whole Life Plans. Since the savings element in such Whole Life Plans can be very significant, the insurance premiums could be 3-5 times that of pure protection Term Assurance plans, for the same level of protection. I faced the same problem when I first started work. I could not afford a Whole Life Plan but had the good sense to choose a Term Assurance policy. Protecting my young family then was more important than leaving them my Whole Life insurance payout after they are all grown up when they need the sum of money the least.
- Former Prime Minister Goh Chok Tong
As a result, the Monetary Authority of Singapore has introduced the following measures:
- Ban product related incentives that reward insurance agents and financial advisers as such incentives may encourage poor market conduct practices such as product pushing and improper switching. However, incentives for selling pure insurance will not be banned. Source: Paragraph 30 of October 2014, Draft Legislation and Proposed Legislative Amendments to Effect the Policy Proposals under the Financial Advisory Industry Review .
- Introduced Direct Purchase Insurance which allows consumers to buy insurance without commission. However, the limit is only $400,000 per insurer. (For those who are looking for higher coverage, the Direct Purchase Insurance is not competitive from the premium per sum assured point of view because of the lack of large sum discount).
Promotion Details
The purpose of this promotion is to help consumers obtain sufficient insurance and receive proper advice.
If you purchase a $1 million level term insurance covering:
- Death;
- Total & permanent disability and
- critical illness …
You will get the following:
- Full fact find and holistic needs analysis to determine your insurance needs.
- Review of your family’s life insurance policies to determine what is not needed and if there is any other shortfall.
- Proper explanation and rationale given on what you can expect from the insurance application.
- Free access to my investment updates for "Paid Subscribers".
Consultation Fee is $250/hour FREE.
DISCLOSURE: I do get incentive for the $1m term insurance. In fact, it is because of the incentive that I can afford to waive my fees. This incentive is permitted by law as short-term incentives to promote pure insurance are allowed.
Are you eligible to purchase a $1 million term insurance?
Before you contact me, you have to determine whether you are eligible to purchase the $1 million term insurance. The following provides a guideline as to how much life insurance you can buy (including existing policies you already have):
Multiples of Annual Earned Income | Death coverage | Critical Illness coverage |
---|---|---|
Up to age 40 | 30 times | 15 times |
Age 41 - 50 | 25 times | 10 times |
Age 51 - 60 | 15 times | 8 times |
For example, if you are 30 years old earning $60,000 a year, the maximum life insurance coverage for death that is allowed is 30 x 60000 = $1.8 million. The maximum critical illness coverage is 15 x 60000 = $900,000.
How much is the premium for $1 million term insurance?
Here are some indicative non-smoker quotes for a $1m term insurance covering death, total & permanent disability and critical illness for 25 years years coverage period:
Next Age | Male (annual premium) | Female (annual premium) |
---|---|---|
30 | 1,752 | 1,819 |
35 | 2.745 | 2,575 |
40 | 4,587 | 3,674 |
Terms and conditions for this promotion
- The term insurance has to be purchased within one month from the first meeting otherwise a consultation fee of $250/hour will be charged. Note that this is not a penalty, this is the usual consultation rate.
- To enjoy this promotion, the term insurance must cover death of at least $1 million. For critical illness it has to be at least $500,000. Check your eligibility as written above.
- The minimum coverage period for the term insurance is 25 years.
- The term insurance is ‘level’ and not a reducing term.
- Should the term insurance be terminated due to non-payment of premium within 10 years, a penalty equivalent to one year's premium will be imposed. This is to discourage individuals from making hasty decisions.
- Although consultation fee is waived, fees charged by other third parties such as medical reports and insurance premiums are still payable.
- Double promotion: If any of the insurers are also running promotions, you are allowed to combine these promotions! (At this point of writing, one insurer is offering 25% perpetual premium discount).
Suitability of this promotion
This promotion is suitable for those who:
- Will have or already have dependents (e.g. children, parents) or
- Have existing mortgages or
- Intends to purchase property with mortgage or
- Wants an independent person to review existing insurance policies or
- A combination of the above.
Contact Us Now!
This promotion will end on 31 January 2017.
If you are interested, contact us at this link HERE and indicate your interest by specifying you are keen in the “$1M PROMO”.
What do you think? Leave a comment.