Buy a term insurance (including critical illness cover)

Dear Kin Lian,

I have been looking around for critical illness only policies. Most of these are tied-to whole life/etc..

But I found one underwritten by HSBC through Automobile Association, premium is reasonable (but not low), for a 100K PA, premium is $176 and critical illness rider of a $100K is $680, under the age group of 45 to 54 years.

At my age, I don't need whole life insurance, I would rather use the money saved and invest in mutual funds for my retirement.

I wonder if there are any other deals of this nature. By the way, I always enjoy reading your blogs.

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My reply:

You can buy a similar policy from NTUC Income. I will ask X to contact you and give you a quote, for a similar plan. You can see if it offers a better deal than the Automobile Association.

I agree that it is better to buy a term insurance (covering critical illness) rather than a whole life policy.

Tan Kin Lian