Cutting overhead cost in retirement

 Retirement overhead cost


1. Wonder if you are aware or like me having the Critical Illness (CI) rider attached to my whole life Insurance expired or expiring at age 60/63.

2. With no CI protection, my wholelife insurance protections are left with $220k Death & TPD coverage at combined premiums of ~$4k p.a. (inclusive of rider). Expensive!

3. Sometimes we bought wholelife policies during our youth some 35 years ago.  They had served our needs.

4.  While I was sad to terminate both wholelife insurance, I am concerned of not adequately covered for CI. 

CI alternative
5.  At my age, premium for CI TermLife or Term policies are very expensive.  Also usual Mindef-Aviva GTL $860 p.a. premium is also expensive for Group Living Care $100k; again at increasing cost till age 70.

6.  When it comes to insurance protection for my family, we have ~35 policies, wholelife, Term, CI, H&S, shieldLifes, PA & DPS.

7. And these are not my 25 endowments !!

~~~

8.  This insurance episode makes me explore for alternative to augment my CI protection and also reduce other fixed overhead costs for my retirement ahead.

a. Resale Wholelife insurance as my "CI-cash"
* I bought 2 Resale Insurance of two young people which assured wholelife insurance.  As I pay their annual premiums, their policies Surrender Value increases annually.

If I need more cash in future, I simply surrender both Resale Wholelife Insurance. IRR: 5%. [Caveat: I only trust INCOME.  Other insurers like MANULIFE or PRUD will highly likely adjust/reduce their SV in these policies.]

* My recent 4 Resale Annuity policies (inclusive of above 2 wholelife Resale) amounting to $170k premiums will give me $4.5k p.m. for age 79 to 84.

This provides some cash boosts at later years.  These are lifetime annuity payouts which can be passed over to my children, if not surrendered.

* They give me annuity payout $4k p.a. to fund some fixed cost expenses.

b. Other overhead cost
I also started to reduce my Telco mobile & home fiber monthly cost.   I just ported over to SIMBA Senior $5 p.m. Plan !

I also just bought anothe SIMBA Senior $12 p.m @200GB. to replace my 500 MBps Home Broadband Plan $40+ p.m. which I am only on its wireless bandwidth at home.

To date, this is my second month run in using my Simba 200GB @$12 p.m.  Tested and proven to work; I added a 300Mbps 5G Prolink Router and a AC230V auto timer switch to alternate between Router Battery and AC230V usage.

~~~

It sounds interesting.  I didn't realise that I am doing this like many Seniors or retirees !!

Maybe I might cut my 3 cups of daily Teh-O ko-song for plain water !!! Oops.

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