Term insurance rates are fixed

Dear Mr. Tan,

Question 1: Term insurance are designed to disappear as we grow older. Term insurance rates are often non guaranteed, the rates will be reviewed on a annual or a 5-yearly basis. The premium increases as we grow older. Is this correct?

Reply: You can buy a Term insurance with the rate fixed for 30 years. Read this FAQ:
http://www.tankinlian.com/faq/choice.html

Question 2: In comparison with a limited payment (maybe 20 year) whole life insurance policy, the coverage may start small, and because of it's contractual base, premiums remains constant. And sum assured increases with age (due to addition of bonus). When death occurs, the life plan will pay the full sum.

Reply: The return from a limited payment whole life is poor. This is due to the high charges deducted to pay agent's commission, expenses and profit for the insurance company. Some examples are given in my blog.

It is better to invest your savings in a separate investment fund. Read this FAQ:
http://www.tankinlian.com/faq/savings.html