The Insurance Discussion

This ST Forum writeup (in my opinion) is apt and timely.

While it is easy to capture the attention of readers by focusing on the issue of term vs whole life insurance, surely the ultimate aim is to raise the financial literacy of the general public and hence make more informed financial decisions (in this particular instance on personal risk management)?

From understanding what is necessary insurance coverage in terms of scope, to discovering the suitable amount of sum assured (some use nominal expense basis; others discount to net PV; there are those who follow benchmarks) and finally to choosing the most suitable plans (factoring in pre-existing medical conditions, underwriting requirements and budget of course!), there are many steps in between.

Which is why choosing a trusted adviser isn't always easy.

Contributor Alvin Choo summed it up best with this para (and I quote)

"It is incontrovertible that term insurance gives the bigger bang for the buck. What is disputable is that it should be bought at the total exclusion of all other forms of life insurance policies.

Instead of contriving a great divide between term and whole-life policies, it would be far more productive and meaningful if efforts were spent on educating the public on the merits of life insurance and the advantage of getting an early head start."