Decreasing term assurance for 25 years

Dear Mr. Tan,
My insurance adviser has given two proposals for me to increase my coverage:
a) critical illness protection for 35 years
b) whole life policy with critical illness rider
Which is better for me?

REPLY
For the term insurance policy, ask the adviser to give you the following options:
a) Level term for 25 years and 35 years.
b) Decreasing term (or mortgage protection) for the same period.

You can compare the rates with the benchmark rates quited in my book on financial planning. My benchmark rates are quite high, so you should be able to get a rate lower than the benchmark rate. You have to decide on the term insurance that suits your needs, by looking at the cost and coverage.

In my view, the most suitable is a decreasing term insurance policy for 25 years. I avoid critical illness policy or rider, as they are usually too expensive (i.e. poor value for money).