INDUSTRY IN A STORM----14/01/2006 Pub: Strait Times
Page: S1-S3
Headline: Industry in a storm
By: Lorna Tan,FROM PAGE S2
.......advised properly, notes financial planning outfit ipac's
director of wealth management, Mr Ben Fok. They end
up over-insured and under-protected, paying high premiums
for very low sums assured. According to the LIA--.
LIA---Life Insurance Association,
the average death claim amounts to a paltry $40,000,
equivalent to just one year's income for surviving family
members. The world benchmark is six to 10 years.
Mr Fok says that policyholders can increase cover
and reduce costs by purchasing term insurance.
2.When I was an insurance agent,I asked them take life term
plus max 5 year term rider which is renewable and
convertiable to life plan later.This can
freeze their earning
power even they cannot bring home any incomeFor premium paid for $20,000 insured in life plan,
I can use the same amount to buy $10,000 life plan
and $80,000 5 year term rider from a Foreign xxx company.
Total benefits is $90,000.How long do your spouse
work to earn extra $70,000?
3.Wife do not need and want compensation from their
husband's insurance.But widow or widower need
their spouse adequately cover in insurance for 10
years' income.