Insurance & Costs of having and raising a child

[brattzz]

thanks guys!

no matter what, insurance is to cover the risks, there are real risks..

[valuebuddies]

Something happened recently which changed my perspective towards insurance, no doubt I still believe that my spouse is financially independent has the capability to raise up the kids without my contribution, I do wish to leave something to my family at any time when I leaving the earth, at least to bring them minimum level of comfort.

I have done some comparison between Term and Whole Life insurance and decided that I should go for Term as my intention is to protect my family against any unforeseen departure before I reach 65.

I got quotes from CompareFirst as follows:

1. $255 p.a. for $200K coverage of TPD/Death till 65
2. $587 p.a. for $200K coverage of TPD/normal CI/Death till 65
3. $509 p.a. for $400K coverage of TPD/Death till 65

My main concern being: should I get coverage for the CI (30 critical illnesses)? The premium for the CI coverage portion is rather high and seems to be only claimable when the illnesses is at critical level. Some of conditions that triggers claim of benefits from CI coverage are as follows (quoted from the insurer's product term sheet):

- A malignant tumour positively diagnosed with histological confirmation and characterised by the uncontrolled growth of malignant cells with invasion and destruction of normal tissue
- Death of heart muscle due to obstruction of blood flow
- A cerebrovascular incident including infarction of brain tissue, cerebral and subarachnoid haemorrhage, intracerebral embolism and cerebral thrombosis resulting in permanent neurological deficit with persisting clinical symptoms
- Chronic irreversible failure of both kidneys requiring either permanent renal dialysis or kidney transplantation
- End stage lung disease, causing chronic respiratory failure

I am not medically trained but it seems to me that the insured person can only claim from the CI when he/she is about to die or suffer from TPD, though there are still chances of recoverability.

I am more a pessimism person so I favour 3rd policy (without CI coverage) than the 2nd one (with CI coverage), as I prefer my family to receive more later than to receive less earlier.

Please share your thought and correct me if I get anything wrong.

[thor666]

I share ur sentiments in the sense that CI has too many exclusions. Remember ur first line of financial defence in Sg against health related issues is medishield.

I am covered for similar amount (400k) under decreasing term, and looking to roughly double my term coverage.

Sent from my D5503 using Tapatalk

[yeokiwi]

Take a look at the following table.

http://www.cdc.gov/injury/wisqars/pdf/10...2010-a.pdf

Depending on your age group, the cause of death can differ widely.
From 25-34, Cancer is at 4th position.
From 35-44, Heart disease and cancer moved up to 2nd and 3rd position.

It might be rather alarming but if you look at the number of cases, (heart disease + cancer) = 22000+ cases only for 35-44 only.
(Unintentional Injury + suicide + homicide cases) are about the same as (heart disease + cancer).

[Bibi]

If a cure for cancer can be found, I wonder whether that will lower the cost of such CI insurance?

Cancer cells programmed back to normal

[hopeforbest]

Hello value buddies. I'm new to this forum.
If somebody only has term insurance and doesn't have CI.
Will insurance company compensate this term insurance if he/she get death by critical illness since he/she doesn't have CI and only have term insurance.

[Ray168]

Hello value buddies. I'm new to this forum.
If somebody only has term insurance and doesn't have CI.
Will insurance company compensate this term insurance if he/she get death by critical illness since he/she doesn't have CI and only have term insurance.

Yes, term insurance will still pay death due to critical illness.

[clogswork]

I find the best term insurance currently is the AVIVA Mindef/SAF Group Insurance  but you have to be an NSman in order to buy this.
After you buy in to it , you can get the cover for your wife and children. You can also get term protection for critical illness and personal accident in addition. 
Check this out :
http://www.aviva.com.sg/life-and-health/...rview.html

[CY09]

Yes Clogswork- This is one of the perks of being a male Singaporean; access to a very good term insurance plan. I feel more advertising should be done to make Singaporeans aware of it. Though if everyone takes it, it may bust the group liability limit per conveyance

In addition, for those working in the public service, there is a better term plan under NTUC income. Of course, this plan is only applicable if you continue to be a lifelong public servant until 60/65
Link: http://www.income.com.sg/insurance/life-...e-coverage

[Muck]

Yes Clogswork- This is one of the perks of being a male Singaporean; access to a very good term insurance plan. I feel more advertising should be done to make Singaporeans aware of it. Though if everyone takes it, it may bust the group liability limit per conveyance

In addition, for those working in the public service, there is a better term plan under NTUC income. Of course, this plan is only applicable if you continue to be a lifelong public servant until 60/65
Link: http://www.income.com.sg/insurance/life-...e-coverage

Hi CY09, not too sure what you meant by the NTUC plan being "better". I thought based on death coverage and tpd, the Aviva plan is superior. Glad if you could share your observation.