Zaobao Interview: My Insurance Plans

How well have you been insured? what kind of policies you hold? What kind of protection you are giving to your family members?

Reply:

When my children were young, I bought term insurance and whole life insurance. The total amount of my insurance was about five years of my annual income. I bought critidal illness insurance for my wife. I also bought insurance to my three children, to cover them against accidents, hospital expenses and to save for their education.

I invest in investment linked plans (ILP) to save for my retirement. Most of my investments are in the large, well diversified, low charge plan offered by NTUC Income. They earned a very attractive return during the past few years, ie more than 10% per annum. Over a longer period of 10 toi 20 years, I expect an average return of 5% to 6% per annum. I think that this is the most suitable type of investment for most ordinary people.

Tan Kin Lian