I did an insurance review just last year in Oct 2016
, but I recently made some changes so I thought I'd just share that with anyone who is interested.
Change 1: Addition of standalone Early CI / CI plan
In November, I was pondering about early CI coverage
. My main concern is how that my only current coverage is a rider of a group insurance policy. After weighing the pros and cons, I decided to supplement my early CI coverage by taking this standalone plan. It has slightly more coverage and relaxed claiming terms, but the independent nature of the plan is what won me over.
I went through DIY insurance
and I have already received my commission rebate. It was a very fuss-free experience. I highly recommend it to people that are independent and know what they want.
Change 2: Changing IP Shield and upgrading rider
I'd say this is probably the biggest changed I've made to my personal finance situation this year. I made a very long blog post about it in March
after thinking about it for a long time, and that really helped me sort out my thinking.
After getting a letter from NTUC telling me that my premiums was increasing and I get very "meh" extra bonuses, I decided that it's time I shop around for another shield plan.
In the end, I decided to go with AXA because of several reasons. Firstly, I had a very good experience with AXA when I was buying my DIRECT DPI insurance in Jun 16
. AXA does have good duration of pre and post coverage (180 and 365 days respectively). Finally, AXA is the only insurer to offer a no-pay rider option without the bells and whistles.
I contacted AXA through their website and I got assigned an agent. She helped me answer all my questions and we met up for 15 minutes to go through the documentation. Less than a month later, my application was approved and I have already received my policy documents.
Of course, with the additional early CI policy and also an "upgrade" from a co-pay rider to a no-pay rider, my premiums have gone up.
All-in, my annual insurance burden is $2413.50 a year, or approximately $200 a month. Cash outlay is lower at $2016.50 a year, or $168 a month. My premiums would stay the same until I'm 30, so I've a few more years before some of my premiums adjust upwards.The difference in premiums at this stage of life should be very minor.
Compared to anyone else paying about $200 per month (most people forget to count DPS and their Shield plans), I think I have pretty good coverage levels - excessive levels, in fact.
Let's be frank. There's no reason anyone like me should have a $1,150,000 death coverage. I have no dependents. This runs counter to my insurance philosophy
. However, given that it is so unbelievably cheap, it's almost criminal not to max out my MHA policy.
I think this is going to be the last time I make any major changes to my insurance policies. With what I have now, I think it is sufficient for me unless circumstances in my life change quite drastically.
If anyone has any questions, or want to discuss about finer details, please feel free to comment and maybe we can have some good conversations there.
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