Insurance & Costs of having and raising a child

[Musicwhiz]

Hi d.o.g.,

OK that was hard-hitting, but I think I got your point! So it's better if I terminate her whole-life policy and split it into part life + term? Or as you say buy term and I invest on her behalf? But if say I want her to have an asset which she can choose to liquidate when she is past 18, can I still buy a hybrid life/term policy? In that case, it makes sense to keep the life portion small and the term portion (protection) larger. I'm not too good with insurance so appreciate your advice here.

Your advice on the order of priority of expenses is also appreciated. I've always known that I had not set aside enough money for insurance coverage, and yes I do intend to change that. Which is why I want to pump in more money for my insurance to boost coverage through reducing term insurance for me and my wife. At the same time, I will liquidate some whole life policies which were purchased when I was much younger by my parents, to free up the cash for investments. I do agree that allocating more of my savings to insurance is more important than saving up for investments, but as of now I am also trying to create some buffer for emergency expenses for my whole family (as I said I have personal issues which require a larger buffer than most would see as "normal").

So perhaps my planner is not giving me the best advice, but then again I guess I did communicate that I wanted a life policy instead of a term one because of my lack of understanding of how it works, so she cannot be blamed too much for that.

I may contact Wilfred Ling to discuss my financial planning and retirement planning. Thanks for your advice.