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Are you too old for life insurance?

Posted 28 February, 2016 by Surely
in Educate Yourself

You are close to your collecting CPF.
You are pruning your bonsai, after you have retired.
You are having the best times of your life at the Senior Citizen block party.
This is for you.

Cheers to the Golden Age!

Cheers to the Golden Age!

Conventional wisdom says that you do not need life insurance.
You may not be working; nobody is depending on your income.
Harsh reality dictates that you may not even around to see the maturity of your 20-year endowment policy.
No life insurance for you huh?

Objection, your honour!

When I was collecting my fixed deposit from the bank, the sales staff advised me to re-invest my money into an Investment Linked Product (ILP).
It promises to give me much superior returns than fixed deposit or a 5 year endowment plan.

ILP is indeed a life insurance.
You do know that ILPs carry a high risk of investment losses right?
We do not recommend it at this stage of life whereby preservation of your money is vital.
If you really want to invest, insurance products are not really your best friend due to the charges involved.

So I can terminate all my insurance policies?
Not so fast, you good old padawan.

Insure well, you have

Insure well, you have.

You still have certain needs for insurance.
Hospitalization plan is always the top priority according to our Financial Pyramid of Needs.
In fact, this is probably when you need it more than ever.
Critical illness can still strike so do keep your CI policies.

The next tier of death/disability coverage is the key.
Why will you want to keep or even buy them?
We can think of some.

A gift for your next generation
Passing on a gift to your children may be one legacy you want to leave behind.
Making their lives a little easier financially is one way of showing your continuing love for them.
They may not need your money and save it up for the rainy days but the needs arise, you can almost hear them say “Thank you, Granny”.

Immense pride when you see your grandchild in their wedding bests.

Immense pride when you see your grandchild in their wedding bests.

Funeral Expenses
Typically it costs about $8,000 – $12,000 to die in Singapore.
Even dying is not cheap here.
You do not want to burden your family.
And you really want that kiss-ass coffin in future.

When you can't leave your phone.

When you can’t leave your phone.

Charity
You really want to donate a good sum for the charity organization of your choice.
However, since you no longer have an income, you need to be more careful with your money.
If you set up the charity organization as your beneficiary, you can have it both – save the money for retirement but yet donating to a good cause upon your passing.
Just need to make sure TT Durai is not the one heading that charity.

Remember Sharity Elephant?

Remember Sharity Elephant?

Disability needs
One pressing need for the aging population is the need for disability insurance.
Just take a look around you – a lot of the elderly folks are wheelchair-ridden.
You just got to keep your disability insurance for the rainy (and slippery) days.

Marriage at later age
You got hitched late.
Your kids are well… still kids.
Just because you are nearing your retirement age, does not mean that your financial liabilities are over.
Your house is still under loan? Better keep your insurance.

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Conclusion
It was once 55. Then it was 65. Just recently it was announced to be 67.
Holy crikey!! You may not be able to stop working until you are 100 if it keep going up.
It is a reflection how our society is changing.

So, don’t leave yourself exposed.
Think carefully of your financial needs even when you are aged.
Insure well and you may just stay in the minds of your loved one a little longer.

www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

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