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Endowment Plans

My Insurance Android App – Insurance Returns

I have recently released my very own (and first) Android App and it’s called Insurance Returns. And if you have an Android Phone/Tablet (preferably those 10.1″) and you are looking for an App that can help you to calculate the compounded rate of returns for your Regular Savings Plan or Single Premium Plan, you can try out this app today!

>> Click Here To Check Out My Android App – Insurance Returns

How Can The Insurance Returns App Help In Financial Planning

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The Cons Of Having Many Of The Same Policy Types

This post is a response to one of the readers who has recently posted a comment on this post. Therefore I do hope that, with this post, I can help to bring out some pointers on the cons of having the many of the same insurance policy types…

When Are There Cons To Having Too Many Of The Same Policy Types?

The existence of cons depends on the terms and conditions stated by various insurance companies. So it is always better to check with the Financial Planners representing each of them. Things worth checking out:

#1 The Maximum Amount Of Insurance Coverage

Some insurance companies tie the maximum amount of insurance coverage against Death and/or Critical Illnesses against a factor of one’s annual income. For example, some insurance companies may set 16 – 20 times of annual income as the maximum sum assured for a whole life or term insurance. So if you are earning $100,000 per year, the maximum amount of insurance coverage that you can get may be set as $2,000,000. Any amount beyond that may mean that you are over-insured and insurance companies may just pay up to that limit.

If you are thinking that it’s unfair since you have the means to pay the premiums, but do think of people who may take advantage, e.g. a person deeply in debt and unemployed but has some savings to tide him over… he decides to get a $1 million dollars term insurance to cover himself and he decides to commit suicide after a year (of which the premium paid is just a few thousands). This will be unfair to the Insurance Company and to the pool of policyholders, do you agree?

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