Getting started with insurance

[boredboiboi]

How is it compared to ntuc? Do U happen to be IFA? How is it compared to ntuc? Since both of them not yet revised until coming 25th?

Ntuc price are slightly higher usually. Thus nv put into comparison.
Actually is ntuc extended to 25.
I am from a FA firm.

 

[winthony]

How is it compared to ntuc? Do U happen to be IFA? How is it compared to ntuc? Since both of them not yet revised until coming 25th?

Normally NTUC would be pricier and their ECI rider does not cover what their CI rider cover. As compared to other insurers, when claiming for CI, you draw from both ECI and CI rider.

NTUC extended to 25th Aug

 

[BBCWatcher]

Have you asked yourself how would your lifestyle be affected if you got a 25% paycut after 3 months? If life goes on then good for you since it means your expenses are still within your means.

I believe the disability "take home pay" can end up being more than 75%. Please correct me if I'm mistaken, but let's use an example. Let's suppose your salary is $6,000 per month, zero bonuses, so $72,000 per year. You can buy up to $4,500/month of DII, so let's go with that. While working your take home pay after CPF contributions is $4,800. But let's assume you pay about $600 per year in income tax after reliefs, or $50 per month, so that's more like $4,750. So in this example you can actually replace about 95% of after tax take home pay....

....However, with most DII policies that's a fixed nominal benefit. Your salary probably isn't fixed nominal. So initially you might be replacing 95%, but over time you're really not due to inflation. Also, CPF still counts. You may be using CPF OA for housing, and you certainly would like to have the retirement and medical savings. If you're on disability benefits, you'll be in trouble if you cannot at least get your CPF LIFE retirement income nailed down since the DII payouts end on your 65th birthday, precisely when CPF LIFE could begin (earliest).

 

[xtwis7]

The most accurate formula I usually recommend is to take the annual gross salary and add any year end or mid-year bonuses before dividing by 12 to get the average monthly salary. The 75% is a guideline to one’s gross salary so if you’re using the net take home salary then this is inevitably higher.

I believe the disability "take home pay" can end up being more than 75%. Please correct me if I'm mistaken, but let's use an example. Let's suppose your salary is $6,000 per month, zero bonuses, so $72,000 per year. You can buy up to $4,500/month of DII, so let's go with that. While working your take home pay after CPF contributions is $4,800. But let's assume you pay about $600 per year in income tax after reliefs, or $50 per month, so that's more like $4,750. So in this example you can actually replace about 95% of after tax take home pay....

....However, with most DII policies that's a fixed nominal benefit. Your salary probably isn't fixed nominal. So initially you might be replacing 95%, but over time you're really not due to inflation. Also, CPF still counts. You may be using CPF OA for housing, and you certainly would like to have the retirement and medical savings. If you're on disability benefits, you'll be in trouble if you cannot at least get your CPF LIFE retirement income nailed down since the DII payouts end on your 65th birthday, precisely when CPF LIFE could begin (earliest).

 

[luncheonmeat_sg]

Thanks so much again experts. Quite a bit to digest haha

For most cost efficient coverage, definitely term plan, esp with big ticketed items coming up.

Have ur kidney stones been removed? This will need to undergo underwriting btw

Below quotes from AXA Direct, comes with extra 50% coverage for first 3 years as well.

1) $200k Death/TPD/ECI
Till age 65 @ $1235.20/year
Till age 70 @ $1434.24/year

2) $250k Death/TPD/ECI
Till age 65 @ $1544/year
Till age 70 @ $1792.80/year

Yea they have been all removed since 2018. Thanks for the quotes, will note for comparisons

I just want to point out that if you’re getting a HDB BTO with a HDB concessionary loan then you will be required to have Home Protection Scheme coverage, which is a form of term life insurance. HPS is term to age 65 (or the end of the loan, whichever comes first), and it pays off your remaining share of the mortgage payments. If your share is 100% (homemaker spouse) then it pays off the whole mortgage if you were to predecease her (or qualify for a TPD claim). Take that coverage into account in calculating how much term life insurance you need, and also the DPS and the bit of life insurance with NTUC membership if you have either/both.


The TPD coverage comes with the term life insurance, bundled, so that’s easy. I would line this up at least no later than actively trying to conceive a child since the child will clearly be dependent on you (and your surviving spouse), above your HPS coverage assuming you have that. You can easily get quotations on direct purchase term life insurance at Comparefirst.sg. Tokio Marine, for example, is pricing $200,000 of direct purchase term life insurance (with TPD coverage) at $210/year (guaranteed level premium) for a nonsmoking male at your age.

DII ranks well ahead of CI and ECI in importance. Aviva would currently charge $430.37/year for $3,000/month of DII coverage assuming a low risk occupation, after their 35% premium discount.

You should probably also consider CareShield Life when it opens in mid-2021. I think you’ll be auto enrolled in CSL at your age, actually, although you can cancel CSL if you insist. I wouldn’t.


Age 65 generally works best.

The insurance carriers are going to want to understand the kidney stones, as Moejoseph pointed out.

Any inclination toward getting an Integrated Shield plan (Great Eastern SupremeHealth B Plus for example), if you can get one? If you do get one it’ll probably exclude kidney-related care, except to MediShield Life coverage levels.

Thanks again for such detailed info and tips.
Will definitely keep the CSL once it's up.
Need to digest and review again my planning but now i'm inclining to go for coverage till 65.
For medishield life coverage i actually am indeed already under AIA goldmax + rider.

Hey there!

Medical history --> how long ago as it and what is the prognosis at the moment?
Budget--> what is your budget at the moment? Because ECI rider would tend to be pricier as compared to the CI rider so it owuld be best to work with your budget

TPD or DII -> Which part of DII are you confused! Perhaps we can help

Thanks for your reply. My stones were removed pretty recently at 2018.
budget wise i'm thinking prudently at around $100++/mth ($1.2k++/annum).
ECI was brought to my attention due to recent few factors - my younger relative had detection of cancer, gov review of CI, whether my kidney stones could lead to future issues...

 

[winthony]

Thanks so much again experts. Quite a bit to digest haha


Thanks for your reply. My stones were removed pretty recently at 2018.
budget wise i'm thinking prudently at around $100++/mth ($1.2k++/annum).
ECI was brought to my attention due to recent few factors - my younger relative had detection of cancer, gov review of CI, whether my kidney stones could lead to future issues...

Hmm, with that budget it would be probably wiser to get onto a term

Roughly quotation would be a term till age 65 covering you for 200k death/tpd + 80k ECI which would be $1238.80/annually

That being said, your condition would certainly be subjected to medical underwriting

 

[Besame Mucho]

Hello, can someone give me a quote from Aviva?

31 ANB, Male, Non-smoker.

Looking for a Whole-life plan + CI rider.

Looking for 100K cover, OK if there is a multiplier and the guaranteed death benefit drops off after a certain age. Thanks.

 

[winthony]

Hello, can someone give me a quote from Aviva?

31 ANB, Male, Non-smoker.

Looking for a Whole-life plan + CI rider.

Looking for 100K cover, OK if there is a multiplier and the guaranteed death benefit drops off after a certain age. Thanks.

Hello! is 100k after multiplier? I would assumed 100k death/tpd +100k Ci?

 

[boredboiboi]

Hello, can someone give me a quote from Aviva?

31 ANB, Male, Non-smoker.

Looking for a Whole-life plan + CI rider.

Looking for 100K cover, OK if there is a multiplier and the guaranteed death benefit drops off after a certain age. Thanks.

Assuming 100k is after multiplier, min is 50k x 2.
But u wan multiplier to end what age? 65/70/75?
How many years of payment mode?

 

[Besame Mucho]

Hello! is 100k after multiplier? I would assumed 100k death/tpd +100k Ci?

Assuming 100k is after multiplier, min is 50k x 2.
But u wan multiplier to end what age? 65/70/75?
How many years of payment mode?

Age 70 can?

Yes, 100k after multiplier.

15 years of payment if possible. Thanks.

 

[boredboiboi]

Age 70 can?

Yes, 100k after multiplier.

15 years of payment if possible. Thanks.

Ok, heres your quote below
15 years payment
50k death/tpd/ci base, multiplier 2 till age 70

$1846.50/year

 

[winthony]

Age 70 can?

Yes, 100k after multiplier.

15 years of payment if possible. Thanks.

Ahh, sure! You have option to choose 65/70/75/80 as well

Since Aviva has a minimum sum assured of 50k for its base, you are only eligible for 50k base for death/tpd + 50k base for CI and x2 multiplier

It will amount to $1846.50/annually for 15 years!

 

[Feliwq]

Hi all,

I need some advices on ECI policy. I have a life insurance plan that bought 10+ years ago, therefore it does not include ECI, only for late stages.
Got a quote from AIA which i have to pay about 200plus/month For 100k. Which has no cash value. It’s quite ex tho.

My question is, if I should get this policy or the one which has cash value? Or is it possible if I get another life insurance plan?

Thanks.

 

[winthony]

Hi all,

I need some advices on ECI policy. I have a life insurance plan that bought 10+ years ago, therefore it does not include ECI, only for late stages.
Got a quote from AIA which i have to pay about 200plus/month For 100k. Which has no cash value. It’s quite ex tho.

My question is, if I should get this policy or the one which has cash value? Or is it possible if I get another life insurance plan?

Thanks.

Hello there

Is the quotation from AIA a standalone ECI product? I think we would have to know your details such as age next birthday, gender etc to evaluate if the premium can be cheaper from other providers!

Based on what you said about no cash value, it would be a term plan and there should be an expiry age for the coverage!

Well it depends on total premium paid and if there is any value in getting a wholelife (cash value). You are able to get another insurance plan if you are healthy and below the maximum age of acceptance

 

[boredboiboi]

Hi all,

I need some advices on ECI policy. I have a life insurance plan that bought 10+ years ago, therefore it does not include ECI, only for late stages.
Got a quote from AIA which i have to pay about 200plus/month For 100k. Which has no cash value. It’s quite ex tho.

My question is, if I should get this policy or the one which has cash value? Or is it possible if I get another life insurance plan?

Thanks.

Name of plan for us to know more before we can comment.
Cash value or not is up to individual.
With cash value is usually higher in premium

 

[Feliwq]

Hello there

Is the quotation from AIA a standalone ECI product? I think we would have to know your details such as age next birthday, gender etc to evaluate if the premium can be cheaper from other providers!

Based on what you said about no cash value, it would be a term plan and there should be an expiry age for the coverage!

Well it depends on total premium paid and if there is any value in getting a wholelife (cash value). You are able to get another insurance plan if you are healthy and below the maximum age of acceptance

Hi, thanks for replying.
Yes it’s called power critical cover. Till 75 years of age.
26 on next birthday, F, smoker

 

[winthony]

Hi, thanks for replying.
Yes it’s called power critical cover. Till 75 years of age.
26 on next birthday, F, smoker

You're welcome!

That is AIA's version of the multipay! I guess the premium is higher than usual because of your smoker status!

For example :
Aviva Multipay 100k till age 75 -> $2587 (Smoker) ,$1304 (Non-Smoker)
TM Multipay 100k till age 75 -> $2018.60 with premium waiver and $1902 without premium waiver (Smoker) , $1409.15 with premium waiver and $1353 without premium waiver (non-smoker)

 

[Feliwq]

You're welcome!

That is AIA's version of the multipay! I guess the premium is higher than usual because of your smoker status!

For example :
Aviva Multipay 100k till age 75 -> $2587 (Smoker) ,$1304 (Non-Smoker)
TM Multipay 100k till age 75 -> $2018.60 with premium waiver and $1902 without premium waiver (Smoker) , $1409.15 with premium waiver and $1353 without premium waiver (non-smoker)

I see, thanks!
But is there an alternative for lower premiums? As i might or might not be able to claim. I don’t mind paying extra for those with cash value as I might be able to use it to cover what i paid.

 

[winthony]

I see, thanks!
But is there an alternative for lower premiums? As i might or might not be able to claim. I don’t mind paying extra for those with cash value as I might be able to use it to cover what i paid.

No worries! The alternatives that I have is Aviva and Tm which i posted!

Cash value wise, you are going to be looking at wholelife with multipay rider which compresses the multipay premium from 49 years to lets say 15/20/25 years which could be quite hefty!

For multipay rider to be added to a wholelife (cash value) policy, only Aviva can do so.

It would be $4753.50/annually for 25 years for a base coverage of 50k for death/tpd with x2 multiplier till age 70 and 100k multipay rider that expires at age 70

 

[boredboiboi]

I see, thanks!
But is there an alternative for lower premiums? As i might or might not be able to claim. I don’t mind paying extra for those with cash value as I might be able to use it to cover what i paid.

Something lower premium will be getting a term plan with eci rider till age 65 instead of a multipay till age 75. Then use the difference and do a saving plan or do some investment.
A wholelife plan might also be around the same premium due to your smoker rate. Are you more to the old ci definition or new definition also can?