I need to be protected for dread disease

Dear Mr Tan,

Recently, I have been thinking of buying a life policy, my reasons as below:

I have a wife and 2 very young children and thus I need coverage for them. Sum assured should be $200,000. I would like to have returns for money invested.

Reading your BLOG, you would say to buy a decreasing i-term insurance for myself so as to protect them.

But if I'm hit by 30 major illness, the i-term would not help as I would need lots of money to see doctor whch is very expensive. I would have to buy a living rider and that cost a lot of money. Using the above policy, there is no return and my money will go down the drain.

KS

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Dear KS

I suggest that you ask the insurance adviser to give you the quote for the following:

Living policy to cover $200,000
Decreasing term (extended to cover dread disease) for $200,000 for 30 years

If you take the difference in premium and invest it to earn 6% per annum (not guaranteed) in a large, well diversified low cost fund), you will find that the total invested sum with gains will exceed $200,000 at the end of 30 years.

If you can get the figures for me, I can calculate the projected maturity value for you.

Wish you all the best for the Lunar New Year.

Tan Kin Lian