Decreasing Term

Dear Mr. Tan,

I am a 27 years old. I have bought life insurance with insurred sum of $30,000 which cost $50 premium a month.

I realised the insurred amount is far from sufficient for me especially I have parents in their fifties who will be retire soon, with insufficient savings for their retirement.

After reading from your website, I realised that the decreasing term insurance is affordable for me to provide a monthly income of $3,000 to my parents till they're 80yrs old, should anything happen to me.

However, when I have tried contacting Aviva and Ntuc Income on decreasing term insurance for insured amount for $900,000. They told me they do not offer decreasing term insurance. Do you have any idea which insurance companies still offer this? I know they do offer this level term insurance?

REPLY

You have to buy a level Term for the time being. Perhaps you can insure for 5 to 10 years.

If you wait a few months, I expect a new life insurance company to offer the decreasing Term plan.

This FAQ shows you the cost of providing a monthly income of $3,000 under a Family Income benefit:
http://www.tankinlian.com/faq/benchmark.html