Purchase additional insurance

Dear Mr Tan,

I wish to seek your advise on whether I should take up a Limited Living Policy to which I need not pay any premiums after 20 years of retaining the policy. I still enjoy the protection and returns.

Currently I am holding a Foundation policy and a Pioneer policy from NTUC Income. I had this feeling that I was not insured enough so I contacted an agent who ecommended the Limited Living Policy.

I am now seeking your advice whether should I be going ahead with this policy.

MY REPLY:

Please read this FAQ.

In my view, it is better to buy term insurance and invest the difference in an investment fund, such as the combined fund of NTUC Income.

You can ask the adviser to show the difference in return under both options. You can make a more informed decision.