Life Insurance

I have decided to sign up for a life insurance. I have yet to get complete information on the coverage and possible return. However here are some analysis and consideration that I have made prior to my action:

1. Will the money I put in worth the coverage that I'll got?

The coverage will pay me SGD100K for death, SGD100K for Critical Illness and SGD100K for Permanent disability. In brief, Touch wooD!!! If I was damned unlucky, I would earned SGD300K in lump sum. The premium will be SGD1,800/year.

Using my limited knowledge in finance, I used the power of internet to calculate the annuity value of my yearly premium payment. Annual payment of SGD1800, with annual interest of 1% (FYI, time deposit in SGD for 36mths = 0.8% p.a.), for 43 years resulted in SGD97K++.

Hence the coverage is worth the money I spent since keeping the money in bank will give me lower interest. Annuity calculator website: here

On top of that, I will be getting extra money from the scheme since part of the premium will be kept as unit trust that can be liquidated anytime as per my request.

2. Is the coverage comprehensive enough?

The coverage includes any kind of death (including suicide) except death due to terrorist attack, permanent disability involving at least lost of two limbs, 31 Critical Illness.

Frankly speaking, SGD 100K will not be enough to cover critical illness however SGD100k will help me pay the minimum contribution of my medical insurance.

3. Will I be covered if I am not a PR anymore?

This is important as I have no plan staying in SG for good. It covers world wide.

4. Will the company go bankrupt during this credit crunch?

I am not a fartune teller. But the mother company seems strong and it is considered as one of the prominent bank in Asia.