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NTUC Income i-Term.
01 Nov 2013 (231 views)

RATING: GOOD

This term insurance policy from NTUC Income is recommended for young people who wishes to have a large life insurance cover for a period of 25 years and to invest the savings in an index fund, such as the Straits Times Index ETF.

The benefit illustration shows that a male age 24 can buy a 25 year term insurance policy covering $200,000 for an annual premium of $190. This premium is fixed for 25 years and the benefit is payable in a lump sum on death, permanent disability or terminal illness occuring within this term.

The coverage will expire at the end of this period. By that time, the savings, if invested regularly in an index fund, is likely to accumulate to a substantial sum, making insurance protection not necessary any more.

A similar coverage under the SAF Group Insurance policy will cost about $300.  The SAF policy does allow coverage up to age 65 but the insurance is renewable one year at a time, and the premium rate may be changed according to claim experience. 

The iTerm policy allows a living benefit rider of $100,000 to be purchased at an additional premium of $179. This beneift is payable on death, permanent disability, terminal illness and on diagonises of any of the specified critical illnesses. This can be useful to a consumer who is worried about contracting a critical illness at an early age, although the change of it happening is quite low.

The actual premium rate depends on the entry age, the term of insurance, gender and the sum assured. For most consumers, the recommended term is 25 years, or up to age 65 (if shorter). This is to be supplemented by personal savings in an index fund.

Here is an example of a consumer who pays $190 a year to insure $200,000 for 25 years. 

If the consumer sets aside a monthly saving of $300 and invest it in an index fund to earn an average yield of 5% per annum, the savings would accumulate to:

Monthly Savings Yield Period Accumulated savings
$300 5% 20 $122,013
$300 5% 25 $176,113
$300 5% 30 $245,159
$300 5% 35 $333,282

HOW TO BUY

You can buy the iTerm directly from NTUC Income's website (www.income.com.sg). You can also ask a financial adviser to handle the application for you. As the commission earned by the financial adviser is not enough, you may have to pay them a modest fee for the time.

Tan Kin Lian

 

 



NTUC Income i-Term.
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RATING: GOOD

This term insurance policy from NTUC Income is recommended for young people who wishes to have a large life insurance cover for a period of 25 years and to invest the savings in an index fund, such as the Straits Times Index ETF.

The benefit illustration shows that a male age 24 can buy a 25 year term insurance policy covering $200,000 for an annual premium of $190. This premium is fixed for 25 years and the benefit is payable in a lump sum on death, permanent disability or terminal illness occuring within this term.

The coverage will expire at the end of this period. By that time, the savings, if invested regularly in an index fund, is likely to accumulate to a substantial sum, making insurance protection not necessary any more.

A similar coverage under the SAF Group Insurance policy will cost about $300.  The SAF policy does allow coverage up to age 65 but the insurance is renewable one year at a time, and the premium rate may be changed according to claim experience. 

The iTerm policy allows a living benefit rider of $100,000 to be purchased at an additional premium of $179. This beneift is payable on death, permanent disability, terminal illness and on diagonises of any of the specified critical illnesses. This can be useful to a consumer who is worried about contracting a critical illness at an early age, although the change of it happening is quite low.

The actual premium rate depends on the entry age, the term of insurance, gender and the sum assured. For most consumers, the recommended term is 25 years, or up to age 65 (if shorter). This is to be supplemented by personal savings in an index fund.

Here is an example of a consumer who pays $190 a year to insure $200,000 for 25 years. 

If the consumer sets aside a monthly saving of $300 and invest it in an index fund to earn an average yield of 5% per annum, the savings would accumulate to:

Monthly Savings Yield Period Accumulated savings
$300 5% 20 $122,013
$300 5% 25 $176,113
$300 5% 30 $245,159
$300 5% 35 $333,282

HOW TO BUY

You can buy the iTerm directly from NTUC Income's website (www.income.com.sg). You can also ask a financial adviser to handle the application for you. As the commission earned by the financial adviser is not enough, you may have to pay them a modest fee for the time.

Tan Kin Lian