E.g. a $100k term plan is about $155 / annual, but why would you go decreasing when the difference in prices is not that much but yet the pay out decrease by quite alot?

I chance upon your blog and find your interesting. Being a financial advisor myself, I thought it’s good if I share these knowledge with you. Don’t worry, no strings attached. 

1. You’re right in saying the total sum assured should be based on the number of dependents, how long more your dependents will live or be dependent on you, and their annual expenses (minus yours).
a. For example, in Singapore the average life expectancy of male is 77 while female is 81. Assuming that your parents are both 60-year-old, and their combined annual expenses are $18000 ($750/mth x 2 x 12), should anything happen to you, the insurance payout should last them 21 years (assuming your father live past the average). The sum assured then will be $18000 x 21 = $378000 (without taking inflation into consideration).

2. However, as each year passes, logically, the sum assured should decrease as well. As their expectancies decrease. This is where you can consider Decreasing Term.
a. As each year pass, the sum assured (or payout) should ideally be :
i. Year 1 – $378000, Year 2 – $360000 ($378000 – $18000), Year 3 – $342000 ($360000 – $18000), etc.
b. It doesn’t make sense if you are still paying the existing amount of premium 10 years later for the same cover when your dependents don’t need it. This will allow a lower premium required and you can use the spare premium to get yourself a Total Permanent Disability (TPD), Income Protection or Critical Illness (C.I) protection, or even fulfilling your goals or investment needs.

3. Getting a TPD, Income Protection or CI will allow a stream of income in the event that you become disabled, partially disabled or suffering from CI. Your existing policy might have an accelerator rider attached to it, allowing the sum assured to be paid out (in installments or one lump sum) when you become disabled. But you must understand that your initially purpose of getting the Whole-Life (WL) and Term is to ensure your dependents can live in peace when you are dead, if you are now using the money because you are disabled or suffering from critical illness, your world will fall apart – the sum assured won’t be able to last with increased expenses (medical bills) and with loss of income.
4. Thus, instead of paying exorbitant premium for WL, you might consider Decreasing Term (it meets the goal of giving your parents a sum of money) and use the extra premium to get other protections.

Hope you find these opinions useful.
Disclaimer: These advices are not recommendations, but opinions, as I do not have the complete information about your financial background.

Yours truly,
Lim Tern Poh

tennis the weekend after 6th Dec shd be fine!

But the difference is that, while if you win toto it is EXTRA cash, if you kena anything, you need the cash.

But above are just my own view lah…whahaha…..one bad thing is i dun rely on my financial planner alot..LOL, am a very difficult customer! haha