Newbie Guide: How to Find a Good Agent for Investment & Insurance?

[vtecXx]

IMO, the AVIVA SAF Accident plan and MyShield do not constitute comprehensive coverage. You should more adequately cover yourself with insurance first before moving on to investments. As a young working adult, your premiums are cheap, and priorities will be to insure the risk of premature inability to work..

ok...so in other words i shld be looking for another term/life insurance before i start investing money?

 

[genie47]

Settle your protection first before you sit down to think about investment. Don't be fooled that you can achieve both at the same time.

 

[vtecXx]

of cos...dun worry but i jus wanna have a head start of how the norm process is like.

so let's discuss and enlighten me pls

 

[genie47]

Get your shield plan. Get life assurance in the form of term. Then start saving your cash for emergency (like 6mths to 1yr equivalent expenses). If you can get the disability insurance do it. Kenna disabling accident is a reality and if you are in denial of this fact, it can cost you dearly.

Then you can invest.

All the first three are your 3-point financial safety belt.

 

[vtecXx]

Get your shield plan. Get life assurance in the form of term. Then start saving your cash for emergency (like 6mths to 1yr equivalent expenses). If you can get the disability insurance do it. Kenna disabling accident is a reality and if you are in denial of this fact, it can cost you dearly.

Then you can invest.

All the first three are your 3-point financial safety belt.

ok. now im short of term insurance actually. and i've like 3months worth of expenses...

 

[HandsTied]

ok. now im short of term insurance actually. and i've like 3months worth of expenses...

Personal accident plan is not disability income insurance.

I repeat: Personal accident plan is not disability income insurance.

 

[vtecXx]

ok. i jus found out from aviva dat the SAF policy i have covers personal accident as well...so im also considering to up the premium or smth...

i just gave them my number and i suppose they'll contact me soon

 

[CARMELA ROSELLO]

Settle your protection first before you sit down to think about investment. Don't be fooled that you can achieve both at the same time.

I agree to this, we can have everything but we CAN'T have it all at once.

 

[dralf]

finally read through all the posts. quite informative.

for GE paysecure, anyone got the full T&C? can post here?
from the website brochure, it seems that the payouts for unable to work in your job is limited to 2 years only.
After that, u can only receive payouts if u cannot work in any kind of job at all.
http://www.lifeisgreat.com.sg/en/jsp/pdf/brochure_pdf/paysecure.pdf


If so, it seems only slightly better than ptd only.

 

[zhiz22]

Apart from the plan that deducts from your CPF Medisave, it is advisable to take up the rider which can only be paid by cash.

Your NS Aviva Plan is a personal accident plan. Personal accident plans give a lump sum payout upon accidental loss of limbs, body parts etc. Disability income insurance is different from this - it pays the insured a regular income should he not be able to work due to accident or illness. For simplified illustrated example: John may insure himself for a benefit of $3,000 a month, and should he not be able to work due to accident or illness (medically backed up, of course), the insurer will pay him the benefit of $3,000 a month until he is able to work again.




IMO, the AVIVA SAF Accident plan and MyShield do not constitute comprehensive coverage. You should more adequately cover yourself with insurance first before moving on to investments. As a young working adult, your premiums are cheap, and priorities will be to insure the risk of premature inability to work.

Take this hypothetical scenario - let's say you only spend minimally on insurance and move on to investing $500 a month. Even if you manage to get 10% pa on your investments for the next 5 years, you will have accumulated about $40,000 when you are 27. If you are unfortunately struck with a premature inability to work at that age, is $40,000 sufficient to replace your income for the rest of your working years and prepare you for retirement? My advice will be to take care of your insurance needs first, then even think about investing. You have time for investments, but you cannot control if or when something might happen to you, especially during your early working years.

your advise is quite flawed and one sided.

 

[HandsTied]

your advise is quite flawed and one sided.

Oh and what would your advice be?

 

[piggyming]

Hi i would like to check on the definition of Critical Illness, Terminal Illness and Dread Disease. What are the difference between them? As I see some policy uses CI or TI or DD. Is there a list that state the type of the illness for each category?

 

[piggyming]

5. Critical Illness Insurance

Critical Illness insurance pays out a lump sum of money whenever you get one of the 30 CIs as defined in the policy (e.g. stroke, end-stage cancer, coma, etc.) Most of the CIs have very high medical treatment costs associated with them. But also note that the definitions of CI is exact so not every serious or expensive medical condition is claimable as a critical illness. CI may come as standalone CI plan or come as a rider for a term life insurance plan. I have a personal preference for standalone CI, since the premiums are usually cheaper than a term life plan with CI rider. Standalone CI plans are also good for people who need CI protection but don't need the death payout. This is especially true for people who have no dependents. There are some who will suggest that CI insurance is not necessary since if one gets a CI it is likely that the person will die very soon. This is partially true, usually the odds of surviving a CI for more than year is not good (50:50 chance?). Nevertheless, the lump sum of money will help your family members pay for your hospital bills, and should you survive a CI this is where CI insurance is very helpful. Without CI insurance, it is likely that a lot of money would have been spent on hospital bills (especially if you don't have a good shield plan). This can jeopardize you retirement plans in the future.

i was inform by an IFA that standalone CI is very expensive compared to a bundle. Do you have some form of illustration to back your claim?

 

[Kheetat]

i was inform by an IFA that standalone CI is very expensive compared to a bundle. Do you have some form of illustration to back your claim?

Standalone CI is slightly priced higher than bundle pack.

For example, Age 30 male non-smoker, 25 year $100k CI standalone is $336 vs 25 year $100k CI rider is $251.

 

[Kheetat]

Hi i would like to check on the definition of Critical Illness, Terminal Illness and Dread Disease. What are the difference between them? As I see some policy uses CI or TI or DD. Is there a list that state the type of the illness for each category?

You might be delighted to hear that the definition of Critical Illness are standardised in Singapore market. In total, there are 37 common critical illness and insurers will pick 30 of them for their critical illness plan.

Critical Illness = Dread disease (common used in older products)
Terminal illness is 1 of the common critical illness where the doctor will declared that the patient has less than 12 months of survival.

However, with the recent development, there are also some enhancement on the critical illness product. These products offer wider coverage of critical illness and covers even the early stages of an illness.

Hope this helps.

 

[HmMmMm]

what's the difference between accelerating illness / disability vs crisis illness cover? is it the same as explain above?

 

[CARMELA ROSELLO]

how can I effectively know if the insurance is scam or not..

 

[piggyming]

Standalone CI is slightly priced higher than bundle pack.

For example, Age 30 male non-smoker, 25 year $100k CI standalone is $336 vs 25 year $100k CI rider is $251.

You might be delighted to hear that the definition of Critical Illness are standardised in Singapore market. In total, there are 37 common critical illness and insurers will pick 30 of them for their critical illness plan.

Critical Illness = Dread disease (common used in older products)
Terminal illness is 1 of the common critical illness where the doctor will declared that the patient has less than 12 months of survival.

However, with the recent development, there are also some enhancement on the critical illness product. These products offer wider coverage of critical illness and covers even the early stages of an illness.

Hope this helps.

thanks for the clarification.

 

[Kheetat]

what's the difference between accelerating illness / disability vs crisis illness cover? is it the same as explain above?

Critical illness cover means a rider that covers critical illness, which pays a lump sum upon diagnosis of a critical illness (it must fulfill the definition as stated in the policy contract)

Critical illness cover can come in 2 way, it either accelerates the basic sum assured or in addition to the basic sum assured.

By accelerating illness/ disability, it means that a claim on illness/disability will accelerate the payment of the basic plan, i.e. life cover. The policy will pay out together with bonus, if any, and it will be terminated thereafter.

 

[HandsTied]

Standalone CI is slightly priced higher than bundle pack.

For example, Age 30 male non-smoker, 25 year $100k CI standalone is $336 vs 25 year $100k CI rider is $251.

Additional CI rider is $251. Accelerated CI rider is $206.

For standalone CI, it is $336 per year.

For the bundle, i.e. death plus accelerated CI, the total cost is $206 + $298 = $504

So if one feels that he doesn't need death cover at all, he can opt for standalone CI which is more expensive than CI rider, but he wouldn't need to pay for death cover which he doesn't need.

In essence it's like buying a burger instead of an Extra Value Meal if one doesn't want fries and the drink.