Q & ACategory: InsuranceQuestion on your Life Insurance Protection Need Analysis!
Jason Wong asked 3 years ago

Hi KC,

I really enjoyed and learned a lot from how to calculate the time value of money before arriving at a target sum to insure.

Should the target amount need to deduct the following also?

(-) ­Existing Life Insurance
(-) ­Existing EPF Amount
(-) Existing Cash & Liquid Assets
(-) ­Net Worth of 2nd & more property value

3 Answers
KCLau Staff answered 3 years ago

Yes. When you do that, you will find that your life insurance needs will be less. 
And beware about the usage of life insurance – you family get the payout faster than they can access all your others assets. Because those need to go through probate or estate administration (few months to few years).

Jason Wong answered 3 years ago

If I were to top up 1mil from Fi Life (supposedly opting for premium increase each year), what other covers can I get to top up an additional 1mil to 2mil? Considering Fi Life’s limit is 1mil.

KCLau Staff answered 3 years ago

Can use an investment-link policy. Ask quote from several companies. Tell them what you want is:

  • minimum regular premium
  • use a top up investment premium if possible (applicable to HLA and AIA)
  • take premium holiday (not paying premium) when there is cash value
  • don’t add other riders that is not for your purpose (e.g. premium waver, critical illness etc)