Fixed deposit VS Insurance

[pantherpunter]

What I want is the money to grow and grow only. Got any good plans to recommend. Nowadays insurance companies are dabbling in investment plans I don't know which one is good anymore. I can deposit fixed amount of money every month, and then 10 years from now the money grow and grow. CIMB provides 0.8 annually. I already opened an account there liao. Now what I want is % much higher than 0.8%. Please help help?

The only "insurance" insurance I need is the medical one. You know the one where you (touchwood) become sick or get into accident but don't need to pay money for medical treatments or hospital fees at all. Some even pay you after you emerge out of hopsital. I hear Cpf also can be used to buy that one? Please can recommend, I want to buy for myself and my mother. She is going to become 60 already but still blur blur, everything also don't have. No insurance, no savings etc…

 

[GE_ric]

If you don't invest, consider doing an endowment plan. That's only if you are comfortable with committing for at least 10 years before receiving lump sum of money, so set aside a comfortable amount. Not the strongest savings tool but still can make you save at better interest than bank.

BUT if you can learn to invest, then go for it.

Use medisave to pay for a basic hospital insurance from any of the 5 insurance companies.

If you intend for incur zero cost upon hospital bill, add the rider (using cash, not medisave) to cover the deductibles and co-insurance. Do check with the company you are keen in to ensure that it covers from first dollar of the bill.

For your mum, it is good to see if you can still enter her into at least a hospital policy. I am not sure of the current health status of the madam.

Secure the hospital insurance fully first, then the other policies can think about them later.

Thanks.


Eric
Great Eastern Life

 

[Darkzi0n]

coverage that u might need:

1. hospitalization and surgical (i would say this is a must)
2. death
3. disability
4. Critical illness.

for the last 3, u can take a look at the SAF group insurance... it is one of the most cost effective insurance plan out there.

personally, i would recommend u not to mix ur protection need with investment need and dont go for any savings/investments plan through insurance coy... unless if u r the type that have no time or completely no interest in investing for urself, and wan everything done for u.. but of cos, such convenience can come at a substantiate price.

 

[WuMing1234]

Nowadays insurance companies are dabbling in investment plans I don't know which one is good anymore. I can deposit fixed amount of money every month, and then 10 years from now the money grow and grow.

Better dont touch ILP when you dont know which funds to be buying into. My advise is dont every touch investment plans from insurance firms/ banks. There is no funds where you can deposits and grow without monitoring it. They are just gonna sell you the plans and your money is left to to swing up and down. Agents/Bankers are salesman and they wont be monitoring for you! If you are looking at endowments which is sum guaranteed, you might want to be careful with liquidity as they will are typically locked down on long period time(20+ years but there are shorter endowments plan in the market) and any withdrawal before that will be detrimental. Some endowments comes with cashback annually and taking out these cashback and not leaving it to grow inside will make you lose money as well.

 

[lzydata]

I will answer the second question first because it's easier, and I can use my two favourite links.

What you talk about where people need not pay any money for medical treatment might be extreme. Shield plans might cover 80% or 90%, but the rest might be payable through Medisave, so no cash payment required. There will be a deductible and co-pay, but these can be cut with riders depending on the policy.

Definitely at least get yourselves Medishield, but even better, one of the integrated shield plans for better benefits and coverage. You can pay up to $800 in premiums per year from your Medisave account for those up to age 75. Do your homework with the two links below and contact an agent from your favourite insurance company to learn more.

Medisave-approved Insurance | Ministry of Health
Comparison of MediShield and Private Integrated Plans | Ministry of Health

If your time horizon is much longer and you just want growth, stocks are the way to go, not "insurance" plans sold by banks. But since you sound like you have no experience in these things, go to the library and pick up some books on investing first.

 

[chopra]

buy 30yr sgs Bond. 2 to 3percent.
if you have 250k, buy hdb/lta bonds. 4percent.

avoid ilp, avoid life, avoid endowment.

if yr risk higher, whack stocks when index crash.

 

[Bustamagic]

I prefer to separate investment from insurance, as each has its own purpose and cost-effective means. A product that combines both typically includes higher commission to the insurer and agents.

 

[stlinking]

Most insurance plans payout are subjected to investment rate of return because the insurance firms use the premium to buy into bonds and equities. Therefore, the returns are usually only indicative.

However, there are insurance savings plan which comes with GUARANTEED payouts which confirm return policy holders more than whatever principal or premium they have paid.

 

[stlinking]

Bro PantherPunter,

I sent you a PM.

Insurance are for protection and should not be lumped with investment. Insurance is extremely important because in the event investment turns bad, one becomes jobless and property market downturn, at least there is still insurance as a backup.

Everyone should have a long term endowment plan such that during retirement, if all else fails, you still have a lump sum payout from insurance to save the day.

Cheers.

 

[chopra]

Everyone should have a long term endowment plan such that during retirement, if all else fails, you still have a lump sum payout from insurance to save the day.

Cheers.

bad advice.
1. you can build a Bond ladder to realise the same return as endowment
2. why should
3. you have cpf life
4. if you can stomach more risk, you can whack stocks

 

[stlinking]

Bro Chopra,

No doubt Stocks has a more impressive return during a bull run but you need to understand it is in a much higher risk bracket compared to insurance

Everyone should diversify their portfolio... Like cash, gold, stocks and insurance such that in a market meltdown, you still have backup plan like cash and insurance.

 

[archcherub]

Bro Chopra,

No doubt Stocks has a more impressive return during a bull run but you need to understand it is in a much higher risk bracket compared to insurance

Everyone should diversify their portfolio... Like cash, gold, stocks and insurance such that in a market meltdown, you still have backup plan like cash and insurance.

insurance's main purpose is to protect.
not meant for diversification...

 

[matchy]

if TS wan to diversify portfolio...maybe can discuss...but if ts is not open...i think stick to fixed deposit better

 

[ChaOrEn]

Fixed Deposit should be for short term goal, why is it associated with Insurance?

Fixed Deposit SGD rate so low, might as well invest into foreign currency FD

 

[evets]

What I want is the money to grow and grow only. Got any good plans to recommend. Nowadays insurance companies are dabbling in investment plans I don't know which one is good anymore. I can deposit fixed amount of money every month, and then 10 years from now the money grow and grow. CIMB provides 0.8 annually. I already opened an account there liao. Now what I want is % much higher than 0.8%. Please help help?

The only "insurance" insurance I need is the medical one. You know the one where you (touchwood) become sick or get into accident but don't need to pay money for medical treatments or hospital fees at all. Some even pay you after you emerge out of hopsital. I hear Cpf also can be used to buy that one? Please can recommend, I want to buy for myself and my mother. She is going to become 60 already but still blur blur, everything also don't have. No insurance, no savings etc…

1. Get a comprehensive h&s plan - (don't need to save on this, cause just one 3d2n stay in hospital, you will 'recover' the cost.)
2. Term plan -(protect yourself during ur most productive years)
3. Take the remainder and invest into things that suits ur style... Putting in FD is a sure losing way with inflation on average of 2-4% in recent time)

 

[evets]

Fixed Deposit should be for short term goal, why is it associated with Insurance?

Fixed Deposit SGD rate so low, might as well invest into foreign currency FD

What foreign currency u have in mind?

INR? AUD?

But first r u able to stomach the fx volatility?

Start of the year, sgd to aud was 1.2950. Now it's at 1.1450.

 

[ChaOrEn]

Of course go for foreign currency fixed deposit which has lower risk such as Malaysian Ringgit in JB or US Dollars in Singapore. Now Ringgit is so weak, it is definitely the best time to stock large amount and invest into FD.

Whats goes down will eventually rise back just the matter whether you have enough cash to afford to wait. Its just like buying property, it can go up or down but will never become banana money.

 

[steventay]

Of course go for foreign currency fixed deposit which has lower risk such as Malaysian Ringgit in JB or US Dollars in Singapore. Now Ringgit is so weak, it is definitely the best time to stock large amount and invest into FD.

Whats goes down will eventually rise back just the matter whether you have enough cash to afford to wait. Its just like buying property, it can go up or down but will never become banana money.

i thought Japan property and stock market have been down since 20yrs ago... isn't it like become banana money...

XE Currency Charts (JPY/SGD) 10yrs
http://www.xe.com/currencycharts/?from=JPY&to=SGD&view=10Y

 

[antonpoh]

Of course go for foreign currency fixed deposit which has lower risk such as Malaysian Ringgit in JB or US Dollars in Singapore. Now Ringgit is so weak, it is definitely the best time to stock large amount and invest into FD.

Whats goes down will eventually rise back just the matter whether you have enough cash to afford to wait. Its just like buying property, it can go up or down but will never become banana money.

Ringgit have been weak for the past 20yrs le. What goes down have been going down ever since. Try and put into RM again later S$1 change RM$4 after another 20yrs.

As for USD, i think we could see 1:1 for SGD someday.

 

[steventay]

Ringgit have been weak for the past 20yrs le. What goes down have been going down ever since. Try and put into RM again later S$1 change RM$4 after another 20yrs.

As for USD, i think we could see 1:1 for SGD someday.

hope i can see too..

XE Currency Charts (SGD/MYR) 10yrs, can u see the SGD is flying..
http://www.xe.com/currencycharts/?from=SGD&to=MYR&view=10Y

XE Currency Charts (SGD/USD) 10yrs, can u see the SGD is flying..
http://www.xe.com/currencycharts/?from=SGD&to=USD&view=10Y

XE Currency Charts (SGD/JPY) 10yrs, it is like sea of water..
http://www.xe.com/currencycharts/?from=SGD&to=JPY&view=10Y