Hey if you enjoy my content please check these out: Join my Telegram for more content and great deals! sethisfy.com/telegram 💳 Credit card deals: sethisfy.com/cards 🔥 Easy money: sethisfy.com/deals
When i told my agent that i wanted to buy term and invest the rest, she said invest the rest = need to buy ILP. I’m not falling for such a trick. I refuse to give distribution costs
When you buy a bundled policy that merges insurance and savings, some premiums go towards the insurance part and some go towards savings. Let’s take for example a hypothetical policy with $500,000 coverage. At the start, the protection part is $500,000 while your savings is $0. The amount the insurance part is covering you is $500,000. Over time, your savings may have grown to $300,000. But the payout should something happen to the insured grows to about $650,000 (again just hypothetical numbers). The actual amount of insurance is now just $350,000 because $300,000 is “your money” (i.e. the savings part). When the insured gets older and older, you will tend to see for many whole life policies, the payout and the savings element start to converge a lot. So the insurance coverage has technically fallen to whatever the difference is between the payout and the savings element. Anyway, all such policies are already actuarially calculated and tend to give poor value. Some people buy it for peace of mind but I would very much rather keep my insurance and investments/savings separate because it is clearer and when done properly will give me better outcomes in both aspects.
@@Sethisfy yah seth I’m trying to fire asap too and have increased my income by 280% in five years. Thankfully did. Ot get lotsa unnecessary coverage and been aggressively saving. Challenge here is that I’m in a relationship where I felt pressured to spend, and idk if its a good thing or not. Sigh... my partner does not have the same drive and perhaps its good in that I should really explore life more, but the principles of financial freedom are sound such that its silly to forgo them. Stuck, period, ZZZ
Nice video! How about the payment term? whole life plan required only to for a certain period like 20 years, afterwards plan continues until 100 years. Term policies required you to pay for the entire term right?
Time value of money matters. Whole life plan condenses your premiums so you pay more upfront, while term typically spreads premiums across more years. Of course there are cases where term policies might not make financial sense especially from not-so-competitive insurers. So one has to shop around.
Generally if you have already bought it for more than a few years it's already sunk cost. You should keep it unless it hinders you from affording proper coverage.
Would you recommend getting a Term Plan with Early Critical Illness illness? Or a Term Plan and add a standalone ECI plan? or Neither? Hope to hear your input.
Personally don’t see the need for early CI. You can compare the price of early CI vs typical CI coverage and decide if the added premium is worth your peace of mind. My opinion is that disability income is more important
I’m currently 27 years old, male non smoker. I’m paying about a total of $1.5k a year in premiums for my term life plan. Covers TPD and death up to $500k. I also have early stage and late stage critical illness coverage of up to $250k each. With hospitalisation plan + added rider coverage up to ward A in government hospitals. Is this amount of premium paid fair? Coverage would be up to age 65. Just wondering if there any better ways to optimise this.
For those of us that have unfortunately already bought a whole life insurance previously, would it then make sense to terminate it at around 60 y.o., where the guaranteed surrender value sum is more than my premiums paid to-date?
Depends on a lot of things. There is likely still going to be coverage at that point (i.e. your coverage amount should still be higher than your cash value). So it depends if you want to have the coverage at that point, or liquidate for the cash value.
I am 31 years old female with 2 primary school going children. I took a whole life insurance in 2015 with a coverage of $80k. My monthly premium is $175 bundled with an accident plan. Is there an exit plan for me or should I just continue this for at least another 10 to 1 5 years?
Either way, the sunk cost has already been sunk. But I don’t think you should do anything with the policy unless it affects your budget to get properly insured. Just my opinion please don't take as financial advice.
@@Sethisfy I see. There are quite a number of Term Life policies in the market. Would love to see a video where you share which ones you think are good/good enough in your own opinion. You can ignore me if you're too busy hahaha, appreciate all of your videos, it's helping a lot.
@@HypertronicTeddy Hey congrats!! I got a hospitalisation from AIA and CI multi pay from SingLife. Planning to get a disability income and maybe a term life in like a few years time.
@@YNA64 thank you so much for your follow up! i was looking into getting hospital and PA for now! tryna avoid whole/term life policies for now as i want to build up my cash first. appreciate it!
Hey if you enjoy my content please check these out:
Join my Telegram for more content and great deals! sethisfy.com/telegram
💳 Credit card deals: sethisfy.com/cards
🔥 Easy money: sethisfy.com/deals
def a good video. Very straight-to-the-point and spot on. Bravo.
Thanks for the kind comment!
Buying a term insurance tomorrow, video came out and recommended to me just the right time! Thank you!
I’m glad it helps!
When i told my agent that i wanted to buy term and invest the rest, she said invest the rest = need to buy ILP. I’m not falling for such a trick. I refuse to give distribution costs
👍🏻 more people should realise this
I don't get the "sum at risk" portion.. 😅 not sure if someone can explain it?
When you buy a bundled policy that merges insurance and savings, some premiums go towards the insurance part and some go towards savings.
Let’s take for example a hypothetical policy with $500,000 coverage.
At the start, the protection part is $500,000 while your savings is $0. The amount the insurance part is covering you is $500,000. Over time, your savings may have grown to $300,000. But the payout should something happen to the insured grows to about $650,000 (again just hypothetical numbers). The actual amount of insurance is now just $350,000 because $300,000 is “your money” (i.e. the savings part).
When the insured gets older and older, you will tend to see for many whole life policies, the payout and the savings element start to converge a lot. So the insurance coverage has technically fallen to whatever the difference is between the payout and the savings element.
Anyway, all such policies are already actuarially calculated and tend to give poor value. Some people buy it for peace of mind but I would very much rather keep my insurance and investments/savings separate because it is clearer and when done properly will give me better outcomes in both aspects.
Learnt smth new today, “sum at risk”, interesting concept
Thanks for taking the time to leave a comment because it helps out the channel to get noticed on RUclips! Glad the video was of some help to you
@@Sethisfy yah seth I’m trying to fire asap too and have increased my income by 280% in five years. Thankfully did. Ot get lotsa unnecessary coverage and been aggressively saving. Challenge here is that I’m in a relationship where I felt pressured to spend, and idk if its a good thing or not. Sigh... my partner does not have the same drive and perhaps its good in that I should really explore life more, but the principles of financial freedom are sound such that its silly to forgo them. Stuck, period, ZZZ
if you have children, does it make sense to buy a term policy for them until Age 75 years old? and after they start work they take over the premiums?
Nice video! How about the payment term? whole life plan required only to for a certain period like 20 years, afterwards plan continues until 100 years. Term policies required you to pay for the entire term right?
Time value of money matters. Whole life plan condenses your premiums so you pay more upfront, while term typically spreads premiums across more years. Of course there are cases where term policies might not make financial sense especially from not-so-competitive insurers. So one has to shop around.
Hi Seth, may I ask, do we get auto-renewal when the term ins expires？Say when halfway thru i developed a health issue, would my Term ins be renewed?
If your term is a renewable term, usually it will renew without health underwriting. Have to check the policy conditions to be sure.
@@Sethisfy ok thanks for your reply :)
01:30 Great point to illustrate the insurance need!
Thank you for your kind comment!
Great video. Sadly i've fallen into my insurance agent trick and bought a whole life policy. Any suggestions how is the best way to 'exit' the policy?
Generally if you have already bought it for more than a few years it's already sunk cost. You should keep it unless it hinders you from affording proper coverage.
Would you recommend getting a Term Plan with Early Critical Illness illness? Or a Term Plan and add a standalone ECI plan? or Neither? Hope to hear your input.
Personally don’t see the need for early CI. You can compare the price of early CI vs typical CI coverage and decide if the added premium is worth your peace of mind. My opinion is that disability income is more important
@@Sethisfy I see but wouldn't the diagnosis of early CI hinder us from working (loss of income) especially during our prime years?
I’m currently 27 years old, male non smoker. I’m paying about a total of $1.5k a year in premiums for my term life plan. Covers TPD and death up to $500k. I also have early stage and late stage critical illness coverage of up to $250k each. With hospitalisation plan + added rider coverage up to ward A in government hospitals. Is this amount of premium paid fair? Coverage would be up to age 65. Just wondering if there any better ways to optimise this.
You probably need disability income insurance
For those of us that have unfortunately already bought a whole life insurance previously, would it then make sense to terminate it at around 60 y.o., where the guaranteed surrender value sum is more than my premiums paid to-date?
Depends on a lot of things. There is likely still going to be coverage at that point (i.e. your coverage amount should still be higher than your cash value). So it depends if you want to have the coverage at that point, or liquidate for the cash value.
I am 31 years old female with 2 primary school going children. I took a whole life insurance in 2015 with a coverage of $80k. My monthly premium is $175 bundled with an accident plan. Is there an exit plan for me or should I just continue this for at least another 10 to 1 5 years?
Either way, the sunk cost has already been sunk. But I don’t think you should do anything with the policy unless it affects your budget to get properly insured. Just my opinion please don't take as financial advice.
Sorry. Can u look at camera than ur stripes. No eye contact
Eye contact makes me nervous 😅
Great stuff. Would you recommend fresh grads to get term life right after graduation?
Yes. Or even during uni/NS if you're prudent enough. Term policies can be really cheap and you buy while your health is that of a young person.
@@Sethisfy I see. There are quite a number of Term Life policies in the market. Would love to see a video where you share which ones you think are good/good enough in your own opinion. You can ignore me if you're too busy hahaha, appreciate all of your videos, it's helping a lot.
@@YNA64 hey im graduating soon. would lvoe to find out what insurance u ended up getting?
@@HypertronicTeddy Hey congrats!! I got a hospitalisation from AIA and CI multi pay from SingLife. Planning to get a disability income and maybe a term life in like a few years time.
@@YNA64 thank you so much for your follow up! i was looking into getting hospital and PA for now! tryna avoid whole/term life policies for now as i want to build up my cash first. appreciate it!
I disagree with him!!!! Even his cat doesn't agree.with him. It's great to get whole life policy for you children.. FACTs 💯
Fat commission for the agent, high profit margin for the insurer, and great value for the policyholder? What a magical product.
Want to get a lousy return for your investment, then buy the whole life policy and have fun for being poor return for the rest of your life!.
@@zhaoyun7188 Who said it's an investment?
u need more sleep lol
It’s just my face 🥲
V good
Thank you!