Sunday, 10 May 2015

My First Insurance Policy

I bought my first insurance policy on the first week of my army recruit days.  I had no financial and insurance knowledge at that time.  On hind sight, probably I will not buy such policy.

It is just a simple life policy and does not include any medical illness benefits.  Yes, it is still in force. And miraclely I still have the same insurance agent after so many years.

The early "benefit" of this policy was only paying 50% of the premium for the two-and-a-half years of my army life.  The full premium will kick-in only after my army ROD (nowaday known as ORD).

ROD - Run Out Date
ORD -  Operationally Ready Date

The first consideration then was to leave something for my ageing parents in case something happens (that was also what the insurance agent said).  The second reason was probably herding mentality as most of my platoon mates brought it.

After my army ROD, the policy is being paid by GIRO in "auto-pilot" mode.  I only remember the policy when the agent sent me birthday and new year cards.

After so many years, the only comfort is that the surrender value of the policy is now much higher than my total premium paid. And it is now growing at a faster rate than if I am leaving the money in the bank.  

Also, it is good to know that the money in this policy is no longer important to my family any more.

Now I am treating this policy as part of my warchest and will terminate it for the next bear hunt bullets.


  1. i also got 1 'NS' insurance my mum bought for me when i was 18 and enlisted. she was worried. i took over when i started working
    its just a simple life policy which only payout when i am dead but i can surrender it anytime now
    i wanted to surrender it last yr but my wife told me to just leave it as i will be putting the surrendered money in my bank earning even more miserable interest rate

    1. Hi Jimmy,

      Yes. Many people have these types of NS insurances...