I took up a NTUC vivolife plan recently. I am paying 50 monthly for 10 years .I'm insured from death my entire life and total permanent disability plus critical illness till 65. How bad can that be when im only paying $5769 to insure my whole life?
REPLY
You pay premium amounting of $5,769 for 10 years and get a cash value at the end of 10 years of less than the total premiums. So you do not get any yield on your savings.
The amount of insurance is quite small. In your case, the policy is not attractive, but it is not bad either. But, if you are happy with this policy, it is all right.
If you buy a term insurance policy and invest the difference in a low cost fund, you can get a higher coverage and, quite likely, a higher yield at the end of 10 years.
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