Sunday, September 19, 2010

Is "term life" really cheaper? No really...

Click here for the comparison in Excel.

Using myself as example, I am looking for another RM300,000 protection.

Term life better? Not really.

I put all expenses and charges in to compute the cost of insurance, Unit-Linked is more value for money than Term Life,

1. Almost the same premium paid over next 20 years (which is the period I need protection)
2. Unit-Linked provides me return on investment on top of the surplus (Surplus = Premium less Charges);
3. Optional for me to extend the coverage at minimum cost.
4. Flexible in adjustment of basic sum assured accordingly in 3 to 5 years later. (remember, financial planning is something you need to actively do and manage, periodic review is important).
5. You may top up to invest extra fund you have from time to time, e.g. when receive bonus or incentive.