Buy Low cost insurance now

Dear Mr. Tan,

You advised your blog readers to wait for the new life insurance company to offer low cost products. What happens if there is a delay in the availability of these products? What if death or disabiilty occurs and the people are not insured?

REPLY

I advised them to buy low cost insurance (i.e. Term and Decreasing Term) now. They should avoid high cost life insurance policy that takes away two years of their savings.

In the meantime, they should keep their savings in the bank. Although the interest rate is low, at least the savings are intact and not taken away to pay commission.

If they have accumulated more than $3,000, they can buy 1,000 units of ST ETF. Or any other low cost investment funds with a small front end load (not more than 1%).