Tuesday, February 1, 2011

First case study

Obviously this should have been me... but it's not.

Some terminologies explained:
Young: <40 yrs old
Middle-aged: 40-60 yrs old
Aged: >60 yrs old
L/TPD : Life/Total Permanent Disability
CI : Critical Illness (a.k.a. Dreaded Disease or DD)
PA: Personal Accident

Case #1: Young engineer
Annual income: 45k
Current coverage: 220k L/TPD + 80k CI

Insights: No H&S is a big no-no. CI coverage seems too little to be of much help in today's context of ever-rising medical bills.

Recommendation: Get H&S and additional CI coverage. In this situation, best way to achieve this would be via term plan as the existing annual premium is almost 10% of his annual income.

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