Insurance
“Dangers” of a Term Policy
By Sethisfy  •  July 30, 2011
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 ......
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By Sethisfy
As an adult, I’ve been through many ups and downs in my career path and personal finance journey, not unlike many Singaporeans. From my years as a tied insurance agent turned independent financial adviser, I realised that there are very few sources of proper, unbiased financial advice for working adults to access. Worse, self-styled “financial consultants” are selling products like savings plans and ILPs to the detriment of the clients whose interests they were supposed to serve.
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1 Comments

One response to ““Dangers” of a Term Policy”

  1. Patrick See says:

    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

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