Life insurance is normally quite expensive, especially if you go for whole life policies. What they offered was very reasonable where affordability is concerned. They also threw in an attractive feature where 60% of the premium paid would be put into savings. When the policy is due to be paid, not only would you get the covered sum, you also get back the 60% savings plus all interests earned.
This policy was also made available to our children. The difference between the adult policy and the children policy is that the latter will save 70% of the premium paid. Both are tax exempted in the annual tax assessment.
All sounds good so far and I was very tempted by the low premiums offered. I’ve been thinking now for 3 days whether my family should purchase this policy. Then today a colleague of mine brought up a good point. She questioned why we should be buying a life policy for children when our children do not have dependents. The whole objective of buying a policy is to ensure that our dependants will be taken care of in the event something happens to us. It doesn’t work the other way around, does it?
My colleague put this question to the insurance company and they too agreed with her. I think they should then tweak and sell this plan as an education policy rather than to classify it under a life plan. Makes more sense that way.
Now that she’s made me see some light, I’m going just for the medical plan.
