Between the never-ending debate about the pros & cons of term vs whole life insurance plans, there is one specific situation where I firmly believe the whole life plan shines brightly – when presented as a heartfelt gift.
When we think of gifts, we often think of tangible items like jewellery, gadgets, or clothing. However, whole life plan also serves as an enduring gift that goes beyond the usual offerings. While it may not be a conventional present, it is thoughtful and invaluable gift that provides financial security and peace of mind to our loved ones, even long after we are gone. So from time to time, I do recommend grandparents (who have a little extra in their retirement) to buy one for their grandchildren, or for parents to buy one for their kids – for purposes of risk management and as a gift.
(1) The Gift of Financial Security
Gifting a whole life insurance plan is a gesture that displays concern and care for the recipient’s financial well-being. This insurance type provides lifelong coverage (long after premium is fully paid). This assurance can help the child feel secure in knowing that financial support will be available during challenging times. It also helps your child save on an expense when they start out in the workforce.
(2) The gift of Insurability
When a child is young and healthy, they typically have more options and lower premiums when purchasing life insurance. By gifting a whole life insurance plan, you are securing their insurability at a young age and providing coverage for life.. This means they won’t have to worry about obtaining life insurance in the future, even if their health status changes.
(3) An unintended memento for your children.
Having done many financial and insurance portfolio reviews over the years, I often hear from my clients “Oh, my dad/mum got this insurance plan for me when I was young. It’s not much, but I am keeping it as a keepsake”.
So between the very practical comparison and debate surrounding term v whole life, here’s a loving take on it 😉
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
I believe that “Worrying is not planning and Hope is not a good strategy”, and that the purpose of Financial Planning is to allow us to lead fulfilling lives while being financially wise.
As such, my role as a Certified Financial Planner CFP® is to help my clients build those sound financial strategies and design action plans that put them on track to their financial goals so that they can live the best possible life for themselves.
This is done via a systematic approach of ongoing cash flow management & asset allocation, as well as investment management, estate planning, and tax optimization.
I also ascertain that I stay up-to-date with industry trends and policies changes to ensure that my clients benefit from the latest strategies and opportunities available.
Over the years, I have developed a specialty in comprehensive financial planning for busy legal professionals & educators. I also particularly like assisting working mothers & young families to achieve their long term financial goals. Working with the largest independent financial advisory (IFA) firm in Singapore also frees me from product pressures and allows me to only recommend solutions that suit my client’s needs. And client’s interest, is always the core of my FA business.
Being a wealth planner is my dream career and this is what I hope to do for a long time.
Other than financial planning & investment, I love to travel, read, bake and I am an adrenaline enthusiast. I am most looking forward to the day my children join me on my adventures.
