A Gift For The Future~

On 31 Oct, we bought another insurance policy for Renzo (besides the hospitalization plan we got immediately when he was first born). We have been wanting to get one for him earlier but somehow dragged till now.

Our financial planner James Teo (in photo with sleepy Renzo) from HSBC presented us with 2 plans. First of which was a Life plan that we would need to maintain for 21 years (during which he will have 30k protection for CI, TPD and Death) and from there on, he will be covered at 60k till death for free. Didn't quite make sense to me as for the plan, we put in 45k in total, only to get 30k-53k back at age 21 for his education (or how else he wishes to spend it...)

Our agent didn't really support this plan but quoted the selling point is that at 21, we can hand the policy over to Renzo as a gift, telling him, "This is our gift to you for life."

Feli replied,"Like that we bo hua, he tan tio.."

I added,"Nope... we bo hua, he bo hua, his wife tan tio..."

Which I found particularly true with all insurance policies. Unless a policy owner gets a critical illness or is permanently disabled, he wouldn't get to use the funds at all, and even if he did, it would be for medical treatment... but then again, i guess that is what insurance is for, to cover the costs of medical treatment (in the above case) or to help the lonely spouse cover daily maintenance after having lost the deceased's monthly income.

So with that, our agent presented us with his preferred plan, one which most parents bought for their kids. It was a life plan cum investment, which was pretty much like the ones we bought for ourselves. Can't really remember the details of the policy off head though... lol...

On the following Wednesday, I met up with James to pass him Renzo's health booklet (apparantly he needs to zap a entire copy... -__-' ) and to settle the final details of the policy. Thankfully James was able to pass the booklet back to us the following day because on 13 Nov 09, little Renzo will be going for his 5-in-1 jab at the Clinic. :S