Advice on Insurance (confusing)

[Minion_Z]

Im 26y.o. female, non-smoker. income less than 3k.

I did believed in insurance, but now very confused with so many type of insurance out there. Hope to have some idea before I consult anyone.

Actually, I've signed few insurance few years back (of cos the medishield, i got with Prudential but no rider signed yet). When i just graduated and kena caught by those Prudential roadshow. Signed a Prucash in name of "force myself to save money", at $200 per month. At that time my salary is only 1.6k........... I really forced myself to pay for 2-3 years. Took 2 times cash back at 1.5k per year. And as time goes by I've heard a lot of things about bad of endowment plan, no guarantee to get back the premiums. And after 4years I still have no Cash Value yet, so I stopped it. But haven't really call and terminate, my agency also like bo chap. Any advice what shall I do with it?

And another one is HSBC ILP at $150 per mth, my friend just joined and ask me to sign. The coverage is quite attractive to me that time. It was 4-5yrs back as well. But after I signed I found that I have to pay until die, and at my 1.6k salary that time I can't really afford. So I stopped it after paid for few mths.

OK, it was really stupid story.. And from there I started to not believe in insurance. Especially for Prucash, when I signed, the agent never even told me about "non-guarantee", even the 3%p.a. is also non-guaranteed. what guaranteed is only the $1500 per yr cash back.

But still, I think ppl still need insurance for protection. But I have no idea yet whether I should get term insurance or Life Insurance.

Im planning to get married next year, husband-to-be also has no insurance. So i started to looking at life insurance for both and accident insurance. I have no idea with the coverage amount as well, but I guess the premium I set should be abt $200. (so can i take the premium as sort of saving for retirement plan as well?) And maybe some additional money for accident or family insurance.

I guess im confused abt what I want......... any advice?

 

[yoshihara]

I would suggest you first to get the rider for your prushield. Keep your prucash as well. It could be a lump sum for your future kid's education fund depending on the term of your prucash. Next is to determine your needs. What type of protection are you looking for? Death or Critical illness or Accident or Female Illness? Then you decide which to get to cover your needs. As for retirement, you can get a ILP for the flexibility of being able to withdraw the cash value.

 

[ebiburger]

ok firstly, you mentioned you have the enhanced medical and hospitalization plan, which I believe is PruShield. Do check whether it is the current version of 'as-charged' medical plan or is it the old plan that has limits on everything. This hospitalization plan is the most basic that everyone should have. Most companies offer plans that are of similar benefits with slight variations.

And you mentioned about an endowment plan which is most likely a endowment with annual cashback. Meaning, you can either take back money every year or keep it inside for more interest.Surrendering of endowment normally will result in a loss for people.Anyway, this one have to see the policy contract in order to better advise you.

Also, premiums for ILP are usually paid regularly. If you are looking for pure protection with limited paying term, there are life insurance products with limited paying term of either 10, 15 or 20 years. Which means, after the paying term, you do not have to pay anymore premium but you get to keep the policies for life. However, due to the limited paying term, of course have to pay slighter higher for that 20 years as compared to a policy with a longer paying period.

Anyway, getting insurance is important, but if you get insurance that your budget doesn't allow for, is kind of inappropiate. You may need , let's say $500,000 sum assured, but your budget allow, so you can start smaller with $100,000. Term insurance may also be a alternative if you have budget constraints but still want higher protection as term is usually cheaper than life insurance for the same sum assured. But the downside for term is that there is no cash value being accumulated, which means that you cannot surrender in future should you not need it anymore.
Term insurance is also suitable for people who want to buy term and invest the rest.

And everyone's financial situation and goals are different so its hard to advise without knowing in better detail. Sum assured needed will depend on your family future plans and also expenses. But remember the basic rule is always to only buy insurance if they are within your budget, as it makes no sense to buy and realise you cannot afford and have to surrender it. If you would like to know more or need further clarification, maybe you can pm me and I would be glad to help you.

 

[kebinu]

Hi, I can do wonder to your portfolio, low premium with a comprehensive coverage.

Pm me if you are interested.

 

[killer]

if really low budget, start off with some term insurance ( after accident, medical that is). i believe it's convertible to whole life for most companies if that's what you want.

the thing about insurance with cash value is that it takes quite awhile to build up the values till it can cover your premiums. usually 4yrs is unlikely to cover, and you probably looking at 15-25years to break even

your agent should have told you that insurance is for long term. terminating early may hurt you more than it hurts them

 

[WuMing1234]

PM sent.

1) hospital plan
2) Life coverage + Critical illness coverage

And then you proceed to start planning for retirement/investment as well as looking into disability income to get yourself fully covered. Endowment is only suitable for those who needs to force themselves to save and at the same time giving returns better than putting in the bank. Other than that, there's no advantage i could think of to justify the need for endowment plan.

 

[pessimist]

there are bright sides to term insurance although cannot surrender policy..

Usually for the same amount of premium u pay monthly for life insurance, u get about 2.5 times more the sum assured for term. E.g. 100k vs 250k. Means upon death (or CI), u will get more payout.

Recently I got a term policy insured up to 90+ yrs old. Unless u "suay", live beyond insured age then the money will be "goned". I doubt I will live beyond 100. Otherwise, u or yr family will definitely get the payout.

To me, its like a safety net for family. Even if u may not get to enjoy this money, yr descendents will be able to. Just remember to get the CI rider and pay yr premiums on time.

U have to know what yr aim for buying any policy 1st.

Just my 2cts.

 

[FP_IFA]

there are bright sides to term insurance although cannot surrender policy..

Usually for the same amount of premium u pay monthly for life insurance, u get about 2.5 times more the sum assured for term. E.g. 100k vs 250k. Means upon death (or CI), u will get more payout.

Recently I got a term policy insured up to 90+ yrs old. Unless u "suay", live beyond insured age then the money will be "goned". I doubt I will live beyond 100. Otherwise, u or yr family will definitely get the payout.

To me, its like a safety net for family. Even if u may not get to enjoy this money, yr descendents will be able to. Just remember to get the CI rider and pay yr premiums on time.

U have to know what yr aim for buying any policy 1st.

Just my 2cts.

You bought a term to cover till 90 years old? Eh... how much you paying for that?

 

[bbmars1128]

For me, 1st thing to consider whether you can afford to pay not forgetting your future obligation which you are planning for. Don't just buy and then time comes, can't afford to pay and then all effort wastedly down the line. I experience that 2x. Could not afford but was kind of greedy think I can force myself to do some saving ended up terminating them prematurely on both occasions. Can even survive, how to pay. I think it is a requirement by MAS that agent have to let you sign a concent form about what you have been brief anf no pressure selling etc... kind of thing. BUY within your limits. When you later if you can afford more.

 

[Garett70]

there are bright sides to term insurance although cannot surrender policy..

Usually for the same amount of premium u pay monthly for life insurance, u get about 2.5 times more the sum assured for term. E.g. 100k vs 250k. Means upon death (or CI), u will get more payout.

Recently I got a term policy insured up to 90+ yrs old. Unless u "suay", live beyond insured age then the money will be "goned". I doubt I will live beyond 100. Otherwise, u or yr family will definitely get the payout.

To me, its like a safety net for family. Even if u may not get to enjoy this money, yr descendents will be able to. Just remember to get the CI rider and pay yr premiums on time.

U have to know what yr aim for buying any policy 1st.

Just my 2cts.

Wow 90ys for term insurance...can you intro me this loban...
I really need it

 

[shashimi]

first of all hospitality coverage is most important. one trip to hospital could wipe out all your saving. second will be critical illness. better get this as early as possible. cos once you are older, there are many coverage they cant cover you for. last is the coverage for death. once you got all these 3 then you are consider relatively safe le.

 

[kebinu]

Wow 90ys for term insurance...can you intro me this loban...
I really need it

Now Great Eastern has limited payment for term insurance.

Interested?

 

[retsevlys]

hi, if you're wary about the financial growth of your policies, I advice you to start off with protection.

usually the first level is to cover your hospital plan to ensure you can get the best medical care if you're warded. this can be done so paid for by medisave and a little bit of cash. make sure your husband to be also has this because in times of crisis, you'd be the one digging your bank account for him.

next level of coverage would be life insurance. dying is already sad, dont die for free. an average singaporean should cover, by rule of thumb, 5 times your annual salary (at least). use term insurance for low premium and high coverage, to ensure sufficient protection for dependents and parents should you step out of the picture any time. it is crucial to have life insurance if you love your family and you're a responsible person. from your post, i gather you probably are.

 

[lasnoblur]

hi, if you're wary about the financial growth of your policies, I advice you to start off with protection.

usually the first level is to cover your hospital plan to ensure you can get the best medical care if you're warded. this can be done so paid for by medisave and a little bit of cash. make sure your husband to be also has this because in times of crisis, you'd be the one digging your bank account for him.

next level of coverage would be life insurance. dying is already sad, dont die for free. an average singaporean should cover, by rule of thumb, 5 times your annual salary (at least). use term insurance for low premium and high coverage, to ensure sufficient protection for dependents and parents should you step out of the picture any time. it is crucial to have life insurance if you love your family and you're a responsible person. from your post, i gather you probably are.

Any advise for plans to look out for?

Im currently covered on hospitalisation, accident and death. but lacking critical illness.

 

[lousylah]

buy term insurance. it is cheaper and offers higher coverage. and as someone mentioned, it is convertible to whole life if you so wish (depends on provider)

ilp, whole life, etc you are just paying your agent's commission - up to 50% of your premium goes to them. so your coverage is low and the amount that actually goes into "investment" is also low. that's why you have to wait 40-50 yrs to break even - before taking into account inflation. you get better returns on FD!

so don't bother with this surrender value, cash value nonsense. buy insurance for the coverage and peace of mind and not to save/make money. do your own savings/investment plan.

Tan Kin Lian's Blog: Term insurance - buy directly

get quotes online or from IFAs so you can compare quotes from different providers:
Term Insurance - Bespoke Wealth Management
Life Insurance Quote - sgPlan
Life Insurance « Best Insurance Quotes Singapore

IFAs:
IPP Financial Advisers Private Limited
finexis

 

[Garett70]

Any advise for plans to look out for?

Im currently covered on hospitalisation, accident and death. but lacking critical illness.

Hi i also lack of critical illness can someone advice on the plan..thank you..I, 31yrs old, single, male, Nonsmoke, does not drink.

 

[lousylah]

Any advise for plans to look out for?

Im currently covered on hospitalisation, accident and death. but lacking critical illness.

Hi i also lack of critical illness can someone advice on the plan..thank you..I, 31yrs old, single, male, Nonsmoke, does not drink.

CI (including early stage).
TPD.

 

[Garett70]

CI (including early stage).
TPD.

Yes if possible,but i want to keep the monthly premium as low as possible..thank you...if possible maybe just the CI(including early stage)..

 

[vivalarave]

I always tell people to work it out backwards.

Start with how much you can afford as of now with your current positive income (of course priority of coverage ranks up there) but personal finances are.. well personal so you know best.

Then have a clear plan in mind what kind of risk you are hedging now..(accidental, citical illness etc)
at 26 y.o, with your current job what are the impending risk you are facing that you wish to "sell" off.

Don't get everything one shot as the premiums will kill you out right with your current income, talk with your agent and see how they can layer the policy accordingly to add on riders accordingly at different age and different milestone in your life..

Most importantly is that you need to understand the importance of insurance so that you don't lapse your payment, cause as you get older it'll get more expensive and there will be more clause.
Hence your goal in mind will at least give you a better idea on what you're looking for now.

If you go in confuse and you meet an agent who needs to hit target (not all but there are chances - esp those with one time commission..), they'll whack you hard and you don't even know what hit you.

good luck and hope it helps!

 

[Garett70]

I always tell people to work it out backwards.

Start with how much you can afford as of now with your current positive income (of course priority of coverage ranks up there) but personal finances are.. well personal so you know best.

Then have a clear plan in mind what kind of risk you are hedging now..(accidental, citical illness etc)
at 26 y.o, with your current job what are the impending risk you are facing that you wish to "sell" off.

Don't get everything one shot as the premiums will kill you out right with your current income, talk with your agent and see how they can layer the policy accordingly to add on riders accordingly at different age and different milestone in your life..

Most importantly is that you need to understand the importance of insurance so that you don't lapse your payment, cause as you get older it'll get more expensive and there will be more clause.
Hence your goal in mind will at least give you a better idea on what you're looking for now.

If you go in confuse and you meet an agent who needs to hit target (not all but there are chances - esp those with one time commission..), they'll whack you hard and you don't even know what hit you.

good luck and hope it helps!

Thank you sir for your advice..i have review ALL my insurance and i really short of CI..hospital i have 3M TO COVER AND I UPGRADE MY PLAN WITH NTUC.. For term i split to two insurance company..AVIVA AND NTUC..for TPD I ALSO HAVE two insurance company NTUC and GE(monthly payout for 1k) i also brought an endowment plan for twenty year..FOR accident i brought from NTUC(100k) and aviva(300k recently upgrade)..Total i paid around $220 monthly..And yes one more if i hospitalize every day i will received cash payment of $100(under NTUC)YEARLY($80) for this plan..Provide that i am single if i married i will review ALL MY INSURANCE PLAN AGAIN...thank you