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Why I regret spending too much on Insurance

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Old 07-01-2018, 11:02 PM   #76
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GE Supremehealth $570/yr – paid by CPF
GE total shield $604/yr
GE life smart protect ILP $300k(CI $200k) - $490/pm
GE early CI rider $100k - $38.90
TK My Legacy Plus $300k (CI $300k) - $374.80/mth
Aviva term $125k + accident $100k - $6.20/mth
AIA prime life $50k - $80.75/mth
NTUC Pioneer Endowment $20k - $35/mth

I got the AIA when I was 14yo so most probably going to continue. The Endowment matures in about 5 more years, so plans to continue too.
The GE supreme health and total shield can keep as mentioned by others on this thread.

TM legacy plus is an old plan which I presume you had bought sometime back. The plan returns are pretty decent and much better than most plans currently available so can jus keep it for long term coverage

ILP since break even, can cancel and place ur money into sti etf in rsp mode, place some into Singapore saving bonds etc. Try to diversify.

Aviva term can keep... I believe this is the saf one. It's cheap and very worth

For your endowment, take it as a savings plan since u have paid for it for many years already.

As for cpf investment, best way is to trf some money from OA to SA... Otherwise u can top up SA to offset taxes. Should u want to invest in unit trust, can top up ur SRS account and sign up dollardex to do srs investments.
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Old 07-01-2018, 11:27 PM   #77
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The GE supreme health and total shield can keep as mentioned by others on this thread.

TM legacy plus is an old plan which I presume you had bought sometime back. The plan returns are pretty decent and much better than most plans currently available so can jus keep it for long term coverage

ILP since break even, can cancel and place ur money into sti etf in rsp mode, place some into Singapore saving bonds etc. Try to diversify.

Aviva term can keep... I believe this is the saf one. It's cheap and very worth

For your endowment, take it as a savings plan since u have paid for it for many years already.

As for cpf investment, best way is to trf some money from OA to SA... Otherwise u can top up SA to offset taxes. Should u want to invest in unit trust, can top up ur SRS account and sign up dollardex to do srs investments.
I would caution transferring from OA to SA. It is one way trip. For those who wish to use OA for housing, it may not be a good idea.
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Old 07-01-2018, 11:39 PM   #78
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ocs, maeda, I'm currently 33 with no medical conditions. Had the ILP for about 6 years.
Reasonably young actually. Having kids or not, you are certainly in a position to own a diversified portfolio of stocks and bonds. To mitigate the risk of individual stocks/ market sectors, using more broad based ETFs is a great way to participate in economic growth to grow your own retirement nest (as long as you don't panic sell at market bottoms instead of waiting for the market to recover).

According to the proposal summary, $9600 is guaranteed while $4400 cash bonus projected at 4.75% is not. There is a part that says the bonuses are smoothed to ensure stable returns on the policy. This means that bonuses are held back on good years to support the bad years.
Guessed as much. The 4.75% is the typically quoted projected return (based on MAS guidelines). This means that the guaranteed part is 15*9600=144000. This translates to ~2% for the guaranteed part. For such a long horizon (25 years), that is low. I would not recommend it.
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Old 08-01-2018, 06:47 AM   #79
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It may not be easy to pick a stock that beats market returns. But if you do your due diligence, read financial statements, track the market, it is not something that is entirely impossible.
No, it’s actually impossible, especially for this audience. Professional fund managers cannot beat the market, and there’s a lot of excellent research/data on that point.

Insider trading on proprietary information — illegal in most markets — is the exception.

If you had written (a) such that it included something beyond the contents of the STI, then we’re starting to get closer to a higher yield (and greater volatility, of course).

I seldom trade outside of Singapore, so afraid that I'm not able to recommend anything.
So how do you diversify against the risk that a tiny country, with a low single digit percentage of the world’s investible markets, might have problems? There are so many examples throughout history.
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Old 08-01-2018, 06:57 AM   #80
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No, it’s actually impossible, especially for this audience. Professional fund managers cannot beat the market, and there’s a lot of excellent research/data on that point.

Insider trading on proprietary information — illegal in most markets — is the exception.

If you had written (a) such that it included something beyond the contents of the STI, then we’re starting to get closer to a higher yield (and greater volatility, of course).


So how do you diversify against the risk that a tiny country, with a low single digit percentage of the world’s investible markets, might have problems? There are so many examples throughout history.
I'm not recommending people pick many stocks, but rather just a few stocks. Some companies diversify by having companies in many countries too.
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Old 08-01-2018, 10:17 PM   #81
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Thanks guys, I've decided not to get the annuity and to cancel my ILP.

About the STI ETFs, any idea where I can get info on buying ETFs on rsp? Do I need to open accounts with banks or something? Sorry for the noob questions.
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Old 08-01-2018, 10:45 PM   #82
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Hi all

Im in mid 30s ( no dependents except parents) and currently have two polices for ten Years

1) NTUC Income shield enhanced plus rider ($300 medisave , $300 cash /yr)
2) Manulife lifeprotector 20 with CI (20yrs limited premium plan-100kcoverage )-$2k/year

I do regular saving in low risk investment option like FD. No stocks and unit trust.

Should i increase my insurance coverage with a term insurance or whole life pla ? Any recommendation if im intending to get more coverage against ci and tpd?

Last edited by happy_bear; 08-01-2018 at 10:51 PM..
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Old 08-01-2018, 11:56 PM   #83
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I came across an advertisement today regarding selling insurance policy to a third party company instead of surrendering the policy back insurance company. How does this work? The company claims that they will buy at higher than surrender value.
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Old 09-01-2018, 12:09 AM   #84
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Thanks guys, I've decided not to get the annuity and to cancel my ILP.

About the STI ETFs, any idea where I can get info on buying ETFs on rsp? Do I need to open accounts with banks or something? Sorry for the noob questions.
I suggest that you take a look at Shiny Thing's thread. Don't be daunted by the idea of investing.

Yes, you will need to open the relevant account(s) with the bank(s). The amount that you wish to invest will impact the choice of method to invest.

Hi all

Im in mid 30s ( no dependents except parents) and currently have two polices for ten Years

1) NTUC Income shield enhanced plus rider ($300 medisave , $300 cash /yr)
2) Manulife lifeprotector 20 with CI (20yrs limited premium plan-100kcoverage )-$2k/year

I do regular saving in low risk investment option like FD. No stocks and unit trust.

Should i increase my insurance coverage with a term insurance or whole life pla ? Any recommendation if im intending to get more coverage against ci and tpd?
Is that Manulife lifeprotector a whole life policy or ILP?

Your death/tpd coverage should be dependent on how much your dependents need to survive in the event of your untimely demise. This is something that only you (and your dependents) have to decide. If you find that 100k coverage is not enough, you can some cheap term plan for additional coverage.

BTW, fixed deposits are not investments.

I came across an advertisement today regarding selling insurance policy to a third party company instead of surrendering the policy back insurance company. How does this work? The company claims that they will buy at higher than surrender value.
Most likely they will continue to pay for the policy until maturity and then obtain the final surrender value.
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Last edited by Maeda_Toshiie; 09-01-2018 at 12:17 AM..
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Old 09-01-2018, 06:17 AM   #85
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I came across an advertisement today regarding selling insurance policy to a third party company instead of surrendering the policy back insurance company. How does this work? The company claims that they will buy at higher than surrender value.
Yes, I am one such person. You may see my thread at:
http://forums.hardwarezone.com.sg/ge...s-5714739.html

If interested, please do read my PM
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Old 09-01-2018, 07:17 AM   #86
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I'm not recommending people pick many stocks, but rather just a few stocks.
We're going to have to disagree about that. Most people shouldn't be picking individual stocks at all. Let the high net worth individuals and professionals try that.

I allow one important, fairly common exception to the general advice. If you work for a company that offers an employee stock purchase program, and if you get an employee discount on the stock price, then regular share purchases of that particular stock can make a lot of financial sense. However, you should take care to keep that stock under 5% ("rule of thumb") of your total household net worth. Sell some shares periodically after at least the minimum holding period.
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Old 09-01-2018, 08:14 AM   #87
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Yes, I am one such person. You may see my thread at:
http://forums.hardwarezone.com.sg/ge...s-5714739.html

If interested, please do read my PM
Can we transfer ownership in between siblings?
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Old 09-01-2018, 08:19 AM   #88
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Can we transfer ownership in between siblings?
Yes, you can do so.
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Old 09-01-2018, 09:19 AM   #89
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I came across an advertisement today regarding selling insurance policy to a third party company instead of surrendering the policy back insurance company. How does this work? The company claims that they will buy at higher than surrender value.
They buy the policy from u. Means they own the policy. They will pay for your transfer ownership paperwork and legal fees. Once you are dead, they will be the sole beneficiary of the death payouts.

Death payouts is ALWAYS higher than surrender payouts. If this is not the case, your insurance policy sucks.

For me, I don't feel comfortable a stranger looking forward to my death.
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Old 17-01-2018, 08:40 AM   #90
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They buy the policy from u. Means they own the policy. They will pay for your transfer ownership paperwork and legal fees. Once you are dead, they will be the sole beneficiary of the death payouts.

Death payouts is ALWAYS higher than surrender payouts. If this is not the case, your insurance policy sucks.

For me, I don't feel comfortable a stranger looking forward to my death.
They have to continue paying the premium until you die right?
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