Continue with your existing policy

Hi Mr Tan,

I am 30 years old. I bought a Living Policy from another company in 1995 ($500/yr) for $25k. I bought another Living Policy from NTUC in 2006 ($1800/yr) for $100k. I also have a growth policy with NTUC for $30k (1996).

But from your advise in your blogs, it seem that getting a Term is a better choice than Living.

Should I give up my Living and change to terms before the next payment is due this May? I heard that term does not cover critical illness? Does it have any effect if i discontinued my living?

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My reply:

Please read my "Financial tips, April 2007" posted in my blog. It contains relevant information for your decision.

Tips

Generally, if you have already bought a whole life policy (such as the living policy), it is probably better for you to continue with the policy, as you have already incurred the upfront cost.

If you wish to terminate the policy and move to a new arrangement, you have to get the actual figures of the available options to make an informed decision. I will ask (name) to help you to get the relevant figures.

If you are taking up a new additional policy, you can follow my advise to buy term and invest separately in a fund. You can buy term with extension to cover critical illness.