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Old 19-09-2016, 10:18 AM   #16
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Getting started with Insurance Coverage

Extract from MoneySense: Buying a life insurance policy is a long term commitment. Take some time to assess what you need and what you can afford. Shop around and compare the different products available before picking the policy you find most suitable.

Here are two checklists to help you assess your insurance and your investment needs.

Work through this checklist to assess your insurance protection needs:
What is the risk you are insuring against? It could be death, a critical illness, or total and permanent disability.
How much you want to provide for yourself and / or your dependants to cope with financial loss if the event happens, depends on factors such as:
The number of dependants you have;
Debts and other obligations that you need to pay off
The standard of living you want for your family
How much you need for your children's education;
The age range of your dependants - when your youngest child is likely to start working and earn an income
Whether you already have some savings and investments to rely on.
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Old 13-11-2016, 10:59 AM   #17
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Old 07-12-2016, 09:05 PM   #18
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How do you calculate the yield of an endowment plan?
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Old 09-12-2016, 05:04 PM   #19
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Any AIA agent here? Looking to enquire on the AIA triple care plan.

Hi, it may be late, but do let me know if you have anymore questions.
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Old 12-12-2016, 03:21 PM   #20
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Hi, I am interested to know. Do pm me?

Last edited by Perisher; 12-12-2016 at 04:30 PM..
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Old 13-12-2016, 07:02 PM   #21
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But if im not wrong life insurance is very expensive right? Thats why alot of people now having term insurance but whats the recommended age to convert to life insurance as term insurance gets more costly when the age increases?
Hi I hope it's not too late! Expensive or not, it all depends on the affordability of your own budget. Also, your objective in your future. Some people get a term plan because they believe in BTIR, some purely because they want coverage and they cannot afford.

Others purchase a life plan because they feel that they need to get some cash back and not let the premiums go to waste.

There's no recommended age, it depends on your financial situation and the commitments that you have. For example, if you recently got promoted and have newborn babies, you can think of converting now.

Hope it helps!
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Old 18-12-2016, 03:01 PM   #22
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I am not a Financial Advisor, just giving my views based on my own experience.

Hospitalisation & Surgery plan most impt. Buy a plan from AIA, NTUC Income or others using CPF medisave.
On top of that, buy a rider to cover deductible & co-payment, not a must, but good to have (premium payable by cash only not CPF).

Then buy term life to cover death/TPD. Sum insured, you decide, but pls don't believe in the 'draw-down' concept used by many Financial Advisors else you will end up insuring yourself for $2m. Think what kind of income generating assets your loved ones could buy when you are gone(touchwood).

Add on with coverage for critical illnesses if you can.

Annuity - CPF life is a good plan. Lots of info on cpf website.

Endownment, Life policies, retirement planning etc -> treat them as saving plans if you don't do your own investment. Returns of 3% possible.
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Old 05-01-2017, 05:57 AM   #23
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How do you calculate the yield of an endowment plan?
The yield is usually stated in your BI, not on the table itself but among the words which people don't read.

To calculate it yourself, you need to use Excel and it can be complicated for starters. I'd however still recommend individuals to calculate it themselves to compare between similar plans from different companies for consistency sake.

Last edited by Bigoya; 05-01-2017 at 06:06 AM..
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Old 09-01-2017, 03:51 PM   #24
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I am not a Financial Advisor, just giving my views based on my own experience.

Hospitalisation & Surgery plan most impt. Buy a plan from AIA, NTUC Income or others using CPF medisave.
On top of that, buy a rider to cover deductible & co-payment, not a must, but good to have (premium payable by cash only not CPF).

Then buy term life to cover death/TPD. Sum insured, you decide, but pls don't believe in the 'draw-down' concept used by many Financial Advisors else you will end up insuring yourself for $2m. Think what kind of income generating assets your loved ones could buy when you are gone(touchwood).

Add on with coverage for critical illnesses if you can.

Annuity - CPF life is a good plan. Lots of info on cpf website.

Endownment, Life policies, retirement planning etc -> treat them as saving plans if you don't do your own investment. Returns of 3% possible.
Emphasis on the word possible. paying insurers to invest your money, shld expect more than mkt returns. the longer the lock-up period, the higher the returns shld be.
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Old 10-01-2017, 03:15 PM   #25
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Emphasis on the word possible. paying insurers to invest your money, shld expect more than mkt returns. the longer the lock-up period, the higher the returns shld be.
"Endownment, Life policies, retirement planning etc -> treat them as saving plans if you don't do your own investment. Returns of 3% possible."

Note that whether u want to treat them as savings plans or u understand they are, by nature, savings plan, the fact is that, indeed these are savings plan, not investment plan.

Compare savings plan to savings account (or even FD account), the returns are already higher at around 3%. While the projected returns differ if the endowment plan provides flexibility of withdrawal or if tenure is say. 5 or 10 years, any savings plan structured in a way that gives you less than 2% returns, you are better off putting the money in bank. However if returns project between 3% to 4%, please consider taking it up.

In a way, you are also paying banks to invest your money (they charges you by giving you only 0.05% returns while they keep all the profits?). For full flexibility of withdrawal you get 0.05% interest. For 2 year lock up you get between 1% - 2%. Savings with insurance company for 10 years or longer, you get 3% - 4%. Whether or not this is fair, still subjected to individual views.
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Old 10-01-2017, 04:24 PM   #26
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"Endownment, Life policies, retirement planning etc -> treat them as saving plans if you don't do your own investment. Returns of 3% possible."

Note that whether u want to treat them as savings plans or u understand they are, by nature, savings plan, the fact is that, indeed these are savings plan, not investment plan.

Compare savings plan to savings account (or even FD account), the returns are already higher at around 3%. While the projected returns differ if the endowment plan provides flexibility of withdrawal or if tenure is say. 5 or 10 years, any savings plan structured in a way that gives you less than 2% returns, you are better off putting the money in bank. However if returns project between 3% to 4%, please consider taking it up.

In a way, you are also paying banks to invest your money (they charges you by giving you only 0.05% returns while they keep all the profits?). For full flexibility of withdrawal you get 0.05% interest. For 2 year lock up you get between 1% - 2%. Savings with insurance company for 10 years or longer, you get 3% - 4%. Whether or not this is fair, still subjected to individual views.
the key word is "project"

banks returns and capital are guranteed with instant liquidity for savings acct

for fd, the capital and interests are also guranteed

there is an element of "non-guaranteed" portion in life/endowment policies. comparing the initial total returns vs the current total returns, how many policies boost higher current total returns?

an eg is AIA Prime Life policy - here is evidence, no csb:

http://www.turtleinvestor.net/surren...e-life-policy/

the crux is the guranteed issue. if insurers are able to guaranteed payouts of higher % than banks or SSB, i am sure their policies will be selling like hot cakes.

keep it simple - consumers know how much guranteed they will be getting every year or after maturity vs how much total they "invested" in the form of premiums
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Old 10-01-2017, 07:46 PM   #27
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the key word is "project"

banks returns and capital are guranteed with instant liquidity for savings acct

for fd, the capital and interests are also guranteed

there is an element of "non-guaranteed" portion in life/endowment policies. comparing the initial total returns vs the current total returns, how many policies boost higher current total returns?

an eg is AIA Prime Life policy - here is evidence, no csb:

http://www.turtleinvestor.net/surren...e-life-policy/

the crux is the guranteed issue. if insurers are able to guaranteed payouts of higher % than banks or SSB, i am sure their policies will be selling like hot cakes.

keep it simple - consumers know how much guranteed they will be getting every year or after maturity vs how much total they "invested" in the form of premiums
Tokyo marine's par plan has boasted never cut in bonus for like 63 yrs? But that alone shouldn't mean that future projected returns should be a guaranteed amount.

There are indeed endowment plans with guaranteed >2% returns, but why are they not selling like hot cakes? Because salesmen dont sell them since commissions are also guaranteed to be low.

Look around, there are things that exist which you could have overlooked and started stereotyping.
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Old 10-01-2017, 07:58 PM   #28
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Tokyo marine's par plan has boasted never cut in bonus for like 63 yrs? But that alone shouldn't mean that future projected returns should be a guaranteed amount.

There are indeed endowment plans with guaranteed >2% returns, but why are they not selling like hot cakes? Because salesmen dont sell them since commissions are also guaranteed to be low.

Look around, there are things that exist which you could have overlooked and started stereotyping.
guaranteed >2% but lock up money for how long?

somemore not guaranteed yearly
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Old 10-01-2017, 09:36 PM   #29
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the key word is "project"

banks returns and capital are guranteed with instant liquidity for savings acct

for fd, the capital and interests are also guranteed

there is an element of "non-guaranteed" portion in life/endowment policies. comparing the initial total returns vs the current total returns, how many policies boost higher current total returns?

an eg is AIA Prime Life policy - here is evidence, no csb:

http://www.turtleinvestor.net/surren...e-life-policy/

the crux is the guranteed issue. if insurers are able to guaranteed payouts of higher % than banks or SSB, i am sure their policies will be selling like hot cakes.

keep it simple - consumers know how much guranteed they will be getting every year or after maturity vs how much total they "invested" in the form of premiums
They cannot unless they lump all the new premiums into another investment management. Promises made by insurer 15 years ago due to mature have to be honored. So unless they seperate the funds, their hands are tied
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Old 11-01-2017, 01:38 AM   #30
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guaranteed >2% but lock up money for how long?

somemore not guaranteed yearly
Do I not get what you mean by not guarenteed yearly, or do you not get what I mean instead?

Guaranteed n% of interest, regardless what "n" is, is the rate of return annually, i.e. n% p.a.
It is not guarantee n% interest after 20 years. Note the difference.

whether to lock the money up or not should not be decided solely by the duration. It can be 10 years, 15 years or even more than 20 years, but as long as you don't over commit for the intended duration, and you have your emergency fund in the bank that gives you immediate liquidity, you are perfectly fine to just leave that portion of cash sitting locked.

Compared to putting 100% of available cash in the bank account, you get say, 1.95% more every year by putting the excess in such endowment.
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