Life Insurance

I have a son now. And I need life insurance. If I were to die today my wife would probably get a factory job and my son’s future might not be very bright.

Taiwan’s private insurance is very complicated…and covers a large array of payments for minor things.

I told them I just wanted “DEATH” not hospital stay.

They told me I could get 30 years of coverage at 19,000nt a year. And the payouts are rather large (depending on the type of death) averaging anywhere from 6-10 million ntd.

But after 30 years…and 570,000nt in payments…I’m not covered anymore.

If I want coverage that goes past the 30 year mark with no time limit (I’ll be 65 then) then the yearly price triples…which I can’t really afford. And in 30 years my son and wife won’t really need me to support them as much.

Opinions? Suggestions (regarding insurance)?

I would at least consider accident insurance if I was you, just since you spend so much time on the road.

I think term life insurance (what you described above) is the way to go. You could probably get by with a 20-year policy since your son will be over 20 by then and will be better able to take care of himself. A 30-year policy gives you an extra 10 year cushion, which it sounds like you would prefer.

In my opinion, 6 million NT is not a whole lot of money for your family if you die. Be sure to decide on the coverage amount that you and your wife think is appropriate.

I have a Shin-Kung policy that vests at a certain amount after 20 years. I pay $3500 a month, and another $1500/month for the supplemental cancer coverage. I have no idea what the possible payouts are, because the only thing worse than wading through insurance documents is wading through insurance documents in your second language. Besides, that’s what wives are for.

A lot of insurance houses raised their “whole life” premiums by 30-40% last year, putting them out of the reach of many. I had a discussion with an agent from Prudential last winter and we got into a bit of a debate over how investing the same amounts as the premiums conservatively would likely outperform what her policy would give at the end of 30 or 40 years. I also asked her if they offered any kind of single payment option and she seemed to think I was a bit eccentric…Oh well, got a free lunch out of it.

If you are only concerned with death and are reasonably certain that you are quite fit, perhaps you should look at a policy geared specifically towards accidental death only. This should bring down your annual premium quite a bit.