FAQs on Life Insurance

Question: I bought a 20-year Endowment Policy which just matured. The maturity value is much lower than what was projected when the agent pitched the sale 20 years ago - very disappointed! Projection should be more realistic, otherwise people lose trust in buying insurance.

Reply: The projection was based on the conditions at that time. Subsequently, interest rate fell. It impacted on the bonuses paid on the policy. We are still in a low interest rate environment.

Question: I have two single premium insurance , one maturiing next year and another the following year.

Reply: They should give you a return of 3% to 4% yearly. It should be quite satisfactory.

Question: I bought a whole Life Policy ten years ago. Another agent told me that I should not have bought this policy as payout upon death is very high but surrender value is low. I have no dependents, so payout upon death is not important to me. What should I do - continue holding this policy, or surrender it now at a loss, or hold it until breakeven then surrender the policy?

Reply: If you do not need the insurance, you can terminate it and receive a cash value. Read this FAQ before you decide.

Question: ElderShield - I was advised by an NTUC Income agent to give up this policy as the claim is low and under very strict requirements. Now with the improved version, is it good to take up this insurance again?

Reply: If you have sufficient savings, you do not need this insurance. You can draw on your savings to cover your needs, instead of depending on Eldershield.

Question: Dependent Protection Insurance Scheme (formerly under CPF) - is it really necessary for people like me who have no dependents? Should I give this up?

Reply: You can give up this insurance, if you do not have any dependents. I terminate this insurance as I have sufficient savings at this time to meet the needs of my family.

Question: I bought a Shield Plan to cover hospitalisation and surgical expenses, as IncomeShield did not provide the "as charged" option. Later, NTUC Income offered the "as charged" option. Should I switch to NTUC Income now since the premium is lower?

Reply: You can switch over to NTUC Income. It should offer similar coverage at a lower cost.

Question: Please advise if I have missed out on any other type of insurance which I should have.

Reply: You can read the FAQs in this website.