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SM Goh Chok Tong’s Take on Insurance

A few excerpts from SM Goh Chok Tong speech at NTUC Income’s 40th anniversary:

Affordability of Term vs Whole Life

“What can we do to keep insurance protection affordable? I urge the insurance industry to make a more concerted effort to address this. Part of the problem lies in the conventional practice of insurers in bundling the savings and protection elements into what is known as Whole Life Plans. Since the savings element in such Whole Life Plans can be very significant, the insurance premiums could be 3-5 times that of pure protection Term Assurance plans, for the same level of protection. I faced the same problem when I first started work. I could not afford a Whole Life Plan but had the good sense to choose a Term Assurance policy.”

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