Just the other day, I received a letter dated 1st Oct 2010 from Finexis. Its contents are as follows:
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Attention: Mr/Ms./Mdm XXXX
FUTUREPROTECTOR PLAN
Dear Mr/Ms./Mdm XXXX,
Thank you for being a client of Finexis Advisory Pte Ltd.
As you would know, insurance provides peace of mind for you and your family, and an appropriate amount of term insurance coverage is the foundation of proper financial planning. These term insurance rates tend to increase with age and your decision in getting such coverage early is extremely prudent. The AXA Futureprotector is such a term plan, which offers you the following benefits:
- Financial protection against death and terminal illness
- Guaranteed renewability
- Guaranteed premiums for the coverage term
We noted that you have purchased the AXA Futureprotector last year during our promotion. However, you may have overlooked the renewal and thus, your Futureprotector is no longer inforce.
To allow you to renew your Futureprotector plan, which has lapsed on 17 April 2010, we have arranged for designated personnel(s), to contact you soon to follow up on our letter and to complete the Health Declaration form. The reinstatement will be at AXA's absolute discretion and this letter is valid till 15 January 2011.
Yours sincerely,
Signed off by Warren Lim
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I think Mr Warren Lim is mistaken in a few ways by sending me this letter:
Firstly, I did not purchase AXA Futureprotector. It was given to me free-of-charge as part of their promotion. I was told to just pay for it first with a full reimbursement to come later.
Secondly, I did not overlook the renewal. I was reminded by the agent to cancel it and he even sent me a Giro cancellation form which I did not use at the end of the day as I simply called up the bank.
Thirdly, once you get something for free, it is very seldom that you will want to pay for it. Why pay for something when you had it for free the last time?
Is there a need for term insurance? My advice is to buy a property as investment and take up a mortgage insurance. Should anything happen to you, your loved ones get a free property. By the time you pay up for the property, you won't need the mortgage insurance as your property may even generate passive income. This sure beats term insurance. Before you plonk your money into that property investment, make sure you have your emergency fund and check your debt service ratio. of course, the best is to buy in a downturn.
ReplyDeleteHi FF,
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Hi financialrays,
ReplyDeleteDoes the mortgage insurance include critical illness? If not, then if you get one of these, and can't work, and won't die, then what will happen?
If you sell your house, does the mortgage insurance still carries on? What if you sell you house and at that time you have a underlying condition and can't covered under any insurance...what then?
I think it's a good idea to buy both.
Hi La papillion
ReplyDeleteU are absolutely right LP. When I was younger, I bought 2 whole life with critical illness coverage for 400k total with 200k extra if accidental death. Thereafter its all saving for property investment with tikam in stock market here and then. But so far no term insurance.