I read another adviser’s article talking about the “dangers” of term insurance, specifically the non-payment of premiums, accidental or otherwise.
The writer tries to drive home the point by including anecdotes of term policy owners forgetting to pay premiums, and even a case of an “improper” GIRO arrangement leading to the term policy lapsing and dramatically just when the person needed it the most.
The solution the writer suggests is predictably a life insurance policy that comes with a cash value. This is such that the cash value can sustain the policy’s coverage if premiums are not paid.
The fragility of such an argument can be seen quite easily. The most important form of insurance a typical Singaporean should have is arguably an integrated Medishield policy, which rider and premium amount above the specified Medisave withdrawal limit are payable by cash. Non-payment of the premium will also cause the policy ......
Danger of a term policy?
Can i get it straight?
Is that the danger knowing the fact that Term policy has no cash values?
Or missing a premium payment is the danger!
Please clairfy. Thanks