Question me on Insurance

[pcmdan]

Is it true that only can claim from one plan, even though u bought many other different plans?

Sent from OnePlus A0001 using GAGT

Only true for life plans, critical illness, tpd plans. Hospitalization and surgical is not

those that require original receipt only can claim once.

 

[moisuperman]

Only true for life plans, critical illness, tpd plans. Hospitalization and surgical is not

those that require original receipt only can claim once.

So if I get a term plan + a medisave plan can claim? I'm very new into insurance . Want to learn more.

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[myrick]

Possible to quote me on term insurance till 65 yrs old.

Female
37 yrs old
Non smoker
$100K
With CI/Early Illness

Thanks.

 

[username2405]

CI

Hi,
Just wondering, is there any essential difference between the following two plans?
1) $1 million death/TPD + $500K accelerated CI,
2) $500K death/TPD + $500K additional CI?
Thanks.

 

[moisuperman]

See this old posting of mine.

http://forums.hardwarezone.com.sg/95071484-post4.html

Still unclear, meaning I can have many different plans . But can only claim 1 as it is whole life with CI . Am I right?

Sent from INO 3 using GAGT

 

[coolgalos]

Can i give someone the gift of insurance. example: buying a newborn some term insurance coverage for a few years as a gift but not directly related to the newborn.

Hi,

I'm sorry to say but it is not possible for you to buy someone a gift of insurance if he/she is not directly related to you.

Basis of buying third party insurance is that the proposer (who will be you) must have of certain interest to the life insured's life (the baby in this case).

Which means to say, parents buying for their child, child buying for their parents.

This is to ensure that insurance payout will not be misused by people.

Alternatively, if you really want to buy a gift of insurance, you can always bypass the loophole by getting the proposer to be the child's parents while you pay for the premiums!

Cheers!

 

[coolgalos]

Still unclear, meaning I can have many different plans . But can only claim 1 as it is whole life with CI . Am I right?

Sent from INO 3 using GAGT

No, you are wrong. To simplify matters, let's split insurance into 2 general categories.

1st Category

Benefit Policies - Lump sum benefits payout from the policy in cases of Death, TPD, CI, PA etc. Benefits Policies allows multiple claims from multiple policies upon any of those cases mentioned. Meaning to say if you purchase 3 life policies with sum assured of 1 mil each, your next of kin will receive 3 mil in total if anything were to happen to you.

2nd Category

Reimbursement Policies - Claims made on a reimbursement basis. Meaning that you only be able to get back the amount you've spent and nothing more. Examples would be hospitalization plans whereby they only reimburse your hospitalization claim. This is a one-claim policy.

If you have whole life with CI with multiple companies, you are able to do multiple claims upon any misfortune.

Cheers.

 

[coolgalos]

Hi,
Just wondering, is there any essential difference between the following two plans?
1) $1 million death/TPD + $500K accelerated CI,
2) $500K death/TPD + $500K additional CI?
Thanks.

Yes there is. Main difference would be the CI portion where the 1st option is an accelerated CI option whereby the 2nd option is not.

Accelerated CI option means that upon discovery of CI, you will have a lumpsum pay out of 500k and the main policy (which is the 1 mil Death/TPD) will still continue. This means you can claim for Death/TPD AND CI

2nd option means that upon either death or CI, the policy will payout 500k and the whole policy will terminate. So you can only claim for EITHER death/TPD or CI

 

[Shion]

Yes there is. Main difference would be the CI portion where the 1st option is an accelerated CI option whereby the 2nd option is not.

Accelerated CI option means that upon discovery of CI, you will have a lumpsum pay out of 500k and the main policy (which is the 1 mil Death/TPD) will still continue. This means you can claim for Death/TPD AND CI

2nd option means that upon either death or CI, the policy will payout 500k and the whole policy will terminate. So you can only claim for EITHER death/TPD or CI

This one ?

Accelerator rider
An accelerator rider accelerates the death benefit of the insurance plan. This is how the plan works. For instance:

Tom (so sorry to use your name if you are also Tom) buys a Life insurance of that covers death 300k, TPD 300k and CI 300k (accelerator). 5 years later, he falls suffers an heart attack that requires surgery and it is claimable under his CI rider benefit. The full 300k is paid out and the whole plan terminates.

Hence, once the plan terminates, the death benefit stops as well. So if two year later Tom pass away, his family would not get any insurance payout under this plan that Tom has.

Waiver Rider
I usually see this rider added into a term plan. On the onset of a critical illness or undergo surgery as covered by the plan, the premiums of the plan and any other attaching rider is waived off.. This means that you won't have to pay any premiums when you activate the benefit of this rider. No money is paid out. Waiver riders are usually till age 65

Additional rider
This rider provides additional coverage that is added on to the basic plan.

Using Tom for our illustration again:

Tom buys a Life insurance of that covers death 300k, TPD 300k and CI 300k (additional). 5 years later, he suffers an heart attack that requires surgery and it is claimable under his CI rider benefit. The full 300k is paid out and the plan continues. IF 2 years later, Tom pass away, his family will then get the 300k death benefit as well.


To understand the difference of accelerator Vs Additional in another manner,

The basic plan that covers death is like a basketball hoop. When the ball goes through the hoop, the benefit is paid out.

Hence, an accelerator works by increasing the size of this hoop to make it bigger and easier for the ball to go through.

But for the additional rider is that it like another hoop that is placed beside the main hoop.

 

[coolgalos]

This one ?

I have some diagrams that may help you understand it better. Do you mind to PM me your e-mail so that I can attach them to you in the mail?

 

[Shion]

I have some diagrams that may help you understand it better. Do you mind to PM me your e-mail so that I can attach them to you in the mail?

PM sent

 

[bin8lee]

It depends on what I am looking for... Term is purely protection, investments obviously is either for income or accumulation of wealth, whole life can either be for protection or forced savings.

If I were to choose, I would go for whole life -> invest -> term. Get protection at cheaper premiums (in the 20's), then invest in my 30's to accumulate wealth, then term policy for 30 years to cover the prime time in my life (35-65) and retire!

viola!

good summary.

 

[coolgalos]

good summary.

Thank you for your kind words. =D

 

[af7680]

HI
I am looking for the term insurance quotations for the following.

Male : 42 yr
Coverage upto 65yr old

1.Death/TPD : 2 mil

2. Death/TPD :2 mil and CI 300k

 

[wwng16]

Hi there,

My GE hospitalization plan is getting more expensive.

Do you have any plans to intro...hospitalization plan + rider.
Thank you.

 

[doody_]

In cases where an individual is in coma or whatsoever, he couldn't claim on his own. Yes, his family may be able to do so on his behalf, but only he himself know how many policies he have in force.

I couldn't help but read that and laugh.

 

[NiteX2]

HI
I am looking for the term insurance quotations for the following.

Male : 42 yr
Coverage upto 65yr old

1.Death/TPD : 2 mil

2. Death/TPD :2 mil and CI 300k

Sent you a PM

Hi there,

My GE hospitalization plan is getting more expensive.

Do you have any plans to intro...hospitalization plan + rider.
Thank you.

You can take a look at NTUC's hospitalisation plan if you want more affordability

if someone takes a term life insurance for 5 years, and keeps renewing it every 5 years till 85 years age, the premium amount will keep increasing with age in 5 year blocks. I guess this is ok.

But in this case, will the premium amounts increase so much that the cumulative premium paid all these years till 85 age, will become more than the sum assured?

any expert advice?

edit: to add, the cumulative premium paid till 65 age is way lower than sum assured, but after that the premiums get so high that at age 85 the cumulative premium paid becomes more than sum assured. Is this standard/correct?

Yes, 5 years renewable term all the way till age 85 will be higher than sum assured in terms of cumulative premium as the last few renewals will cost you skyrocket premiums. It doesn't make sense to go with 5 years renewable term, it only makes sense for companies to insure their key personnels on that basis as their employees are probably not gonna stick with the company all their lives. It will be wiser to get a term plan till a specific age which you feel is sufficient for you.

 

[coolgalos]

Hi there,

My GE hospitalization plan is getting more expensive.

Do you have any plans to intro...hospitalization plan + rider.
Thank you.

GE hospitalization plan is generally more expensive than other companies so as to speak.

I know the Prudential and NTUC is cheaper than GE, but in terms of cheapest, you probably have to do some comparisons on your own.

Do note that if you have any pre-existing condition, it is not wise to change company because your conditions will be excluded. Else, it is all right for you to make switches.

 

[coolgalos]

if someone takes a term life insurance for 5 years, and keeps renewing it every 5 years till 85 years age, the premium amount will keep increasing with age in 5 year blocks. I guess this is ok.

But in this case, will the premium amounts increase so much that the cumulative premium paid all these years till 85 age, will become more than the sum assured?

any expert advice?

edit: to add, the cumulative premium paid till 65 age is way lower than sum assured, but after that the premiums get so high that at age 85 the cumulative premium paid becomes more than sum assured. Is this standard/correct?

Do also note that there will be medical underwriting every time you purchase a term policy. In the case you've mentioned, that would be every 5 years.

Rather than the sky rocketing premiums that will make the plan not worth the value, shouldn't you be worrying more about becoming uninsurable should something happen to you.

I know no one likes to listen to bad things but come on, be honest to yourself. Illnesses and death are part and parcel of living which makes us human.

The basis of insurance is to protect against the unexpected and not the expected. If everyone know when they will fall ill or when they will die, insurance will become everyone's best friend.

But it is also due to that unforeseeable circumstances that someone created insurance many years ago to help people when they need it the most. (monetarily speaking)

 

[Lewis.T]

You are right that there will be a medical underwriting every time someone purchase a NEW term policy every 5 years, but it will be okay if someone just keeps renewing the same policy instead of buying a fresh one. No underwriting if u renew the old one, right?

Yes, but renewable term gets expensive quickly at each point of renewal.