Getting started with insurance

[m0n0n0ke]

Generally, if u check “yes” to the 2 points below, u can consider keeping endowment plan. If “no” to any of the points, further consult a Financial Consultant u trust the usefulness of plan to u, and consider dropping plan if he can not convince u otherwise.
Pls note to early termination of insurance plans may result in u losing whole or part of your savings.

1) you want a systematic and organised way of accumulating wealth.
2) u cannot generate better returns than the endowment plan on your own (accounting for early termination losses if applicable).

For your consideration.

Thanks. ..I think I will hold until 65

 

[Advisor13]

Need some advice here to decide the most logical personal insurance strategy.

I am 27 y/o. Currently working. Have 2 parents at 58 and 68. Take home pay around 3k.

A year ago, I decided to get some insurance in place for myself. Didn’t know much about insurance.

Was sold an ILP plan as my first insurance plan (didn’t have any except for the mindef aviva coverage).

The agent highly encouraged it(explaining benefits of flexibility and ability to get money back). So, I ended up buying it.

Mainly these questions:
1. Having read so much (negative reviews) about ILP, should I terminate it?
2. Term plan VS whole life plans
3. Good amount of coverage at this point of my life?
4. Early critical illness vs late stage vs no CI coverage?
5. Other advices or opinion?
How should I proceed at this juncture? Seeking other opinions to help me get a clear decision. Thank you in advance to anyone giving me advice here.

My personal opinion.

Don’t cancel your ILP, cancel all the protection riders and let more premium go into investment.
Get a whole life plan as it’s limited payment and whole life coverage for ci & eci.
A good guide line to me 5-10years your annual income is a good coverage.
Get a lower eci and more ci coverage. As eci is a rider w no cash value.
In this generation no CI is a big Nono to me. Nowadays the food we consume is not as fresh as our parents generation.

If you’re worried about your parent get them the basic hosp plans and if they’re healthy get some term ci plans.

 

[hellvolhardzelinsky]

hi, my friend from AA recommended me these products.

Max Health Vitalhealth A +HealthShield Gold Max A (Hospitalisation, 745/year)
Solitaire Personal Accident (PA, 14.60/month)
Guaranteed Protector plus (123/month, critical illness/death)

I'm going to graduate soon, so are they good plans for me? Do I need the best hospital plan? And also for critical illness/death plan, I think it is linked to investment. I'm thinking of getting one that isn't linked to investment.

 

[moejoseph]

hi, my friend from AA recommended me these products.

Max Health Vitalhealth A +HealthShield Gold Max A (Hospitalisation, 745/year)
Solitaire Personal Accident (PA, 14.60/month)
Guaranteed Protector plus (123/month, critical illness/death)

I'm going to graduate soon, so are they good plans for me? Do I need the best hospital plan? And also for critical illness/death plan, I think it is linked to investment. I'm thinking of getting one that isn't linked to investment.

There are a few better products out there, so will be good to do some research first. Also do ensure you will be able to afford the premium as well.

 

[mummynew]

Oh i see the one that i would be heading to would be in Hong Kong! At the same time ill check with the my school as well

Most if not all schools provide Student Exchange travel insurance from what I know.

If your school doesn't, then you may try AIG Student Assist cover. I have very positive experience with this when I had to summon my son back from UK for the funeral of his dad (who passed on suddenly). The urgent same day ticket booking was $3000+ and the same was refunded to me within 14 days after online claim submission with no question asked (sometime may ask whether is it a pre-existing condition etc).

 

[BBCWatcher]

If your school doesn't, then you may try AIG Student Assist cover.

I have a couple concerns with AIG Student Assist:

1. It's what could be called a "fluffy" insurance product. It spends a lot of words describing various soap opera-like scenarios, but it's quite hollow. The base policy offers absolutely no coverage if you get sick and scant coverage for medical expenses if you're injured. You can add that coverage, but even the Plan C limits are rather low. This is exactly backwards: the core coverage is the most important.

2. Depending on what country or territory you're going to, it might not be appropriate. Some countries require particular medical insurance coverage in order to qualify for a student visa. The Schengen Area (European countries) is one such example. In other countries (the United States notably) the insurance coverage would be completely inadequate. In other words, a policy issued locally in Singapore is unlikely to work all that well.

I appreciate that particular policy worked OK for you, but it's likely there are better choices.

 

[mummynew]

I have a couple concerns with AIG Student Assist:

1. It's what could be called a "fluffy" insurance product. It spends a lot of words describing various soap opera-like scenarios, but it's quite hollow. The base policy offers absolutely no coverage if you get sick and scant coverage for medical expenses if you're injured. You can add that coverage, but even the Plan C limits are rather low. This is exactly backwards: the core coverage is the most important.

2. Depending on what country or territory you're going to, it might not be appropriate. Some countries require particular medical insurance coverage in order to qualify for a student visa. The Schengen Area (European countries) is one such example. In other countries (the United States notably) the insurance coverage would be completely inadequate. In other words, a policy issued locally in Singapore is unlikely to work all that well.

I appreciate that particular policy worked OK for you, but it's likely there are better choices.

I think is difficult to find the 'perfect' cover unless want to pay a very high premium. With premium of $300+ per year, then I have to be contented with the quantum provided.

For UK and Japan, basically students with visas will be covered under compulsory national medical insurance of the countries (UK's insurance is very expensive).

For UK, I am not so concerned with the low medical cover but more on 'emergency medical evacuation' and 'repatriation' covers. These two are high costs items. The rest is just frills that are 'nice to have' (I have never expected to claim the compassionate visit and just pleased with AIG efficient claim process when submitted).

 

[BBCWatcher]

I think is difficult to find the 'perfect' cover unless want to pay a very high premium.

Among carriers based in Singapore, yes, agreed, that's likely true. But that's not how most international students approach medical insurance coverage needs. In the first instance they ask the university for recommendations. Many (not all) universities have student health plans that are often well designed for international students. That's the first place to ask.

Then, of course, you should sanity check the university's recommendations. Sometimes it makes sense to augment the university's recommended or required coverage.

For UK and Japan, basically students with visas will be covered under compulsory national medical insurance of the countries (UK's insurance is very expensive).

Yes, some countries cover inbound students and even require specific minimum insurance. A Singapore-issued policy typically won't be deemed acceptable.

For UK, I am not so concerned with the low medical cover but more on 'emergency medical evacuation' and 'repatriation' covers. These two are high costs items.

They're high cost if issued in Singapore, yes. They can be more reasonably priced if purchased elsewhere.

Singapore's insurance market is small, and Singaporean international students tend to be comparatively wealthy, so understandably the local insurance market is going to be less competitive than other markets. It pays to shop around.

 

[xtwis7]

For overseas travel insurance that specifically caters to students, there’s only 2 options. AIG and Liberty.

Note that the deductibles are outrageously high so it’s not like typical travel insurance that covers the full cost of your medical expenses.

 

[BBCWatcher]

For overseas travel insurance that specifically caters to students, there’s only 2 options. AIG and Liberty.

Among policies issued in/from Singapore, perhaps that’s so. I don’t know why there’d be any requirement to shop for insurance only in Singapore. Indeed, with many countries that’s not even a legal option because policies issued in Singapore wouldn’t even be valid for student visa purposes. (It depends on the country, of course.)

 

[romeo88]

Specifically, what’s this CPF Hospitalisation insurance are you referring to ?

5. IMHO, the CPF Hospitalisation insurance should be the first insurance plan anybody gets. Its affordable and the premiums for basic plan is paid from CPF Medisave (no cash outlay for a young person).
Co-Payment insurance rider is all but a small part of the whole hospitalisation insurance plan. No need to wait for a better deal because of it.
Get the basic shield plan in place first, add on the rider anytime later.
If you health deteriorates from now till then, you may not be insurable for your existing medical conditions anymore.

 

[Zenest]

Specifically, what’s this CPF Hospitalisation insurance are you referring to ?

I’m referring to CPF Integrated Shield Plan.
You may refer to more info regards the plan in link below (sorry, page doesn’t allow me to paste link directly for some reason).

cpf.gov.sg/Members/Schemes/schemes/healthcare/private-medical-insurance-scheme

moh.gov.sg/medishield-life/about-integrated-shield-plans/comparison-of-integrated-shield-plans

 

[BeanFarmer]

How is AIA's secure critical cover? https://www.aia.com.sg/en/our-products/life-protection/aia-secure-critical-cover.html

Premiums seems a lot higher than regular term + CI rider.

 

[gloryyang]

just joining society, was thinking of buying some accident plans.

do u guys get from general insurance companies or life insurance companies for personal accident plans?

 

[moejoseph]

just joining society, was thinking of buying some accident plans.

do u guys get from general insurance companies or life insurance companies for personal accident plans?

Hmmm it depends actually, as different insurers carry different products. Will classify accident plans under a life product.

Most life insurers will carry GI products, but most GI only insurers may not carry life products. Hence if future should you need any advice, you may have to look for a life insurer again.

 

[BBCWatcher]

just joining society, was thinking of buying some accident plans.

Why are you thinking of buying such a thing?

I'm a big supporter of insurance, but it has to be good insurance that actually works. For example, does it matter what caused paralysis in your arm if that misfortune were to befall you? No, it doesn't. You would have a particular impairment, and that impairment could have certain consequences. It doesn't matter whether that impairment was caused by falling down a flight of stairs, a stroke, or some mysterious reason that cannot be determined.

An "accident plan" would only pay benefits if the paralysis in your arm was caused by an accident as the policy defines it. Not a stroke, not an unknown cause.

This doesn't work, obviously. You certainly don't care why your arm is impaired. Good insurance wouldn't care either.

OK, so what insurance would actually help here? Well, at least two kinds:

1. Medical insurance would help. It'd help pay for the immediate treatment of the injury or ailment, plus (if it's good) it'd also help pay for at least some rehabilitative care, such as visits with a physical therapist. If you're not quite wealthy, medical bills can be tough to handle on your own.

2. Disability Income Insurance (DII) would help if you were unable to work or less able to work, and if you suffered a loss of earnings as a consequence.

Aren't these types of insurance at least more important? I'd say so.

 

[gloryyang]

Why are you thinking of buying such a thing?

I'm a big supporter of insurance, but it has to be good insurance that actually works. For example, does it matter what caused paralysis in your arm if that misfortune were to befall you? No, it doesn't. You would have a particular impairment, and that impairment could have certain consequences. It doesn't matter whether that impairment was caused by falling down a flight of stairs, a stroke, or some mysterious reason that cannot be determined.

An "accident plan" would only pay benefits if the paralysis in your arm was caused by an accident as the policy defines it. Not a stroke, not an unknown cause.

This doesn't work, obviously. You certainly don't care why your arm is impaired. Good insurance wouldn't care either.

OK, so what insurance would actually help here? Well, at least two kinds:

1. Medical insurance would help. It'd help pay for the immediate treatment of the injury or ailment, plus (if it's good) it'd also help pay for at least some rehabilitative care, such as visits with a physical therapist. If you're not quite wealthy, medical bills can be tough to handle on your own.

2. Disability Income Insurance (DII) would help if you were unable to work or less able to work, and if you suffered a loss of earnings as a consequence.

Aren't these types of insurance at least more important? I'd say so.

yup! I do have medical insurance, paying via cpf.

i was thinking of accidental insurance because i have a school mate had a nasty accident, and it wasn't pretty. he got some compensation for it, so i thought it would be good for my family to have. googled a bit read this PA is cheaper from general insurer than life insurance so wondering if i can get it from a general insurer instead.

i am not skipping medical insurance for pa. just adding on to it.

for now, its all protection, not saving money in insurance plans.

 

[archcherub]

yup! I do have medical insurance, paying via cpf.

i was thinking of accidental insurance because i have a school mate had a nasty accident, and it wasn't pretty. he got some compensation for it, so i thought it would be good for my family to have. googled a bit read this PA is cheaper from general insurer than life insurance so wondering if i can get it from a general insurer instead.

i am not skipping medical insurance for pa. just adding on to it.

for now, its all protection, not saving money in insurance plans.

yeah general insurer is cheaper.
but to be fair, the life insurance policies usually have additional benefits, like TCM visits, recuperation benefits etc etc.. they need to justify their prices also.

 

[BBCWatcher]

i was thinking of accidental insurance because i have a school mate had a nasty accident, and it wasn't pretty.

I agree! Misfortunes aren't fun, especially if you don't have the financial ability to handle them. Please note that insurance cannot necessarily repair an arm, restore sight, make somebody love you, or otherwise do anything that money cannot do. So insurance can only ever fill a money gap, if you have a money gap. (Wealthy people don't have a money gap as long as they're genuinely wealthy.)

My point is this: suppose your mate experienced exactly the same misfortune, but the cause of the same misfortune was something else. Personal accident insurance (PAI) will only ever pay anything if there's an accident, as the policy defines it. An illness, causes unknown...zero payout. Same misfortune, zero financial protection.

Whenever you're considering insurance, you have to think about what misfortunes -- what outcomes -- you cannot reasonably financially handle on your own that money would solve or at least make substantially better. (Note: Not a "pity gift." This isn't about buying misfortune lottery tickets. This is about when additional money can actually help solve real problems, such as loss of income because you cannot work, because you're disabled.) No matter what the causes of those misfortunes. Then insure against the misfortunes, not against the causes, insofar as possible. If you're comparing insurance to a TV show or to a Hollywood film, the plot doesn't matter -- the ways that the screenwriter tells the story. It's the ending that matters, the conclusion, the outcome. If the lead actor took a plane, or a bus, or a train, or a rocketship to get to Tokyo, it doesn't matter. What matters is Tokyo, the ending. Bus insurance doesn't work; Tokyo insurance might.

Make sense?

 

[gloryyang]

My point is this: suppose your mate experienced exactly the same misfortune, but the cause of the same misfortune was something else. Personal accident insurance (PAI) will only ever pay anything if there's an accident, as the policy defines it. An illness, causes unknown...zero payout. Same misfortune, zero financial protection.

yup yup, agree with you. i have medical insurance, a bit of term.
so i guess i shld get more term and disability coverage too....