I have bought investment link policy last year, but I’m thinking to terminate this insurance and consider purchasing term life insurance and medical insurance separately. The investment link insurance is a combination of life and medical insurance plus fund investment, although the life insurance is renewable up to 100 years olds, but I can very sure that we still need to pay for the life insurance after our age of 65 years old and above and the insurance fee for this age stage is very high.
I have asked my insurance agent about when I can stop paying the insurance fee, he told me that most probably after 20 years then you can stop for it, and then I can use the fund investment amount from the investment link policy to pay for the insurance fee. My question is, do we know that the investment amount is enough to pay for the insurance fee after we stopped? I think, if it is not enough money, then the insurance company will notice you and ask you continue to pay.
This is the reason why I will consider the term life insurance because the whole life insurance is expensive, while the term life insurance is very affordable. Term life insurance is simple to understand, and allows for personal choice. I pay a monthly premium based on the term length and amount of coverage you choose.
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