Why do my agents say that my insurance is not enough?

Hi Mr Tan

I came across your blog from the eNN Neighbourhood News & would like to get a neutral party's opinion from you.

I'm 50 years old & semi retired with an income of between $1,600 to $2,000, but I'm paying $880 for my monthly insurance cum investment. I find this difficult to maintain and it has become a burden to me. My 2 agents from 2 different insurance companies told me that I do not have enough coverage.

Here are my coverage. (details removed)

With 9 different insurance & investments, I wonder why my coverage & savings are not enough???

C

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Dear C

Your two advisers tell you that your insurance is not enough, so they can sell more insurance to you. They earn commission on the additional insurance. They are not really looking after your interest.

You should consider your insurance needs in the following aspects:

* how much do you and your dependent need, if your income stops now due to death or permanent disability?
* how much do you need to save for your future needs, ie when you retire

To provide the protection benefit (ie payable on death or disability), it is best to buy a low cost term insurance. To save for the future, it is best to have in a flexible savings plan invested in a large, well diversified, low cost fund. You can read about the i-term and ideal plan in www.income.coop/faq

If you wish to see a salaried consultant who can give advice to you without being motivated by the commission, you can visit the business center of NTUC Income at Bras Basah Road.

For your existing policies, you can stop the saving on the plans without incurring any penalty. The consultant should be able to help you make this decision.

Tan Kin Lian