Insurance & Costs of having and raising a child

[CY09]

Thanks for the explanation. Was reading the AIA policy posted and it mentions that the death benefit is 12x monthly income but it notes that "4 Death Benefit is applicable for standalone policy only". Anyone knows the meaning behind it?

Secondly, if I am right, in the event that an individual has TPD, one is unable to work and thus disability income benefits will kick in. Hence if an individual has a disability income policy similar to what AIA is currently offering, term life is not that important (since TPD event is covered by disability income policy, in my opinion). Using this exercise, it points to me that one should get disability income first, followed by term. Next, one should only get term if he/she has a huge financial liability on hbalance sheet. Of course, I am assuming that the terms of coverage for disability income and term are the same which is definitely not true as you have pointed out sometimes recreational events are not covered. (the devil is in the detail).

To summarise my understanding, the general difference in term and disability is that 1) the premium paid for term is a lot lower, 2) its easier to claim and it provides a large sum payout in an unfortunate event, 3) disability income covers the events of getting injured while term doesn't