Quote:
Originally Posted by fourhorseman
endownment plans, as long as you can set aside 5-10 % (up to 20%) of your salary, you use it effectively as a hedge against your CPF savings. since CPF saving have limitation on withdraw, you pair a same amount of deduction of your CPF to your endownment plan and put it to run in consecutive number of years, so you plan and have an "early withdrawal" at age 45, 55 and 60, ahead of the CPF withdrawal age. now I am praying MAS doesn't change the rules on endownment plans.  |
Bro, can elaborate this? Dun understand
BTW, critical illness plans need to look out for fine prints which don't cover stage 1 (which is most common), may need a rider or get another cheap term plan for stage 1 cancer.
Also I was told to take BOTH term (i.e. cover up to 70/75yo) and life policies; drop the term policy as you age since it's more practical to cover illness when you're younger/productive; dropping it will reduce premium need but still keep the life policy till death.
And yes, all those plans that combines coverage AND investment are CRAPS, especially if it links to hospital coverage; because for every $100 premium you pay, it basically split this $100 to pay for practically 2 different standalone plans, and when the premium for coverage increases with your age, less of that $100 goes to investments. Buy seperate plans if you must! This type of investment link BS are what insurance agents get the best bang for the buck!
And buy hospital and accident plans! They are the cheapest BUT most useful. Insurance agents don't push it because they earn peanuts with these plans, but make sure you buy! Especially if you're self employed!!! Must get those that pays you daily/weekly income when you get MC too.