Whole Life

Dear Mr. Tan,
Is whole life a good plan?

REPLY
It depends on the pricing. If it has reasonable charges, it is a good plan.

Unfortunately, most of the plans in the market have high charges to pay agent's commission and advertising cost. They give poor value to the customer and lock the customer for many years. It take about 15 years to reach breakeven point.

For insurance proection, the best plan is a term insurance over 25 years. To reduce the cost, you can take a decreasing term or a income benefit plan.