Getting started with insurance

[younggungho]

Need help with underwriting advice

Hi guys, need some advice for a concerned forumer. Do you know how far back will insurers check when a client wants to do a claim on his hospitalization plan. And is it true that once a successful claim has been made before, the chances of getting future successful claims will not be a problem as the claims officer has checked thru all pre-existing condition.

Thank you

 

[enomis]

Hi guys,

I am on prudential's rider plan now which my parents bought for me. (no co-payment)

However I have been thinking if it is worthwhile switching to a co-payment plan as prudential have the levels system where you would have to pay mroe if you claim above a certain amount at private hospital.

I am 26 and perfectly healthy.

 

[boredboiboi]

Hi guys,

I am on prudential's rider plan now which my parents bought for me. (no co-payment)

However I have been thinking if it is worthwhile switching to a co-payment plan as prudential have the levels system where you would have to pay mroe if you claim above a certain amount at private hospital.

I am 26 and perfectly healthy.

Keep it, unless you cant afford the premium. or you willing to pay co payment in future

 

[minamikaze]

Hi!

I recently got a new job where I will be getting ~S$680 of medical insurance allowance monthly (on reimbursable basis), as part of the benefits. This covers both me and my wife. I can use for any form of insurance, including endowment plans.

Right now, we are both heavily under-insured, because we only have the Private Integrated Shield coverage (up to A ward), and nothing else.
My plan is to spend around $250 monthly for both of us (combined) to get TPD/CI coverage ($200K) + Income assurance ($3000) + IP rider to cover up to 95% of costs.
This leaves around ~$400 monthly, which I intend to put into some form of endowment plan or WL life (because that money would be "wasted", otherwise).

Does anyone have any advice on how I could best utilize this ~$400 on a monthly basis - i.e. which provider and which plan? I was looking at Great Eastern's Great Wealth Multiplier as recommended by my friend who is an agent.
I may or may not stay in this job for many years, so I do not want to lock myself in for too long.

Thanks so much in advance for any suggestions!

 

[BBCWatcher]

....Right now, we are both heavily under-insured, because we only have the Private Integrated Shield coverage (up to A ward), and nothing else.
My plan is to spend around $250 monthly for both of us (combined) to get TPD/CI coverage ($200K) + Income assurance ($3000) + IP rider to cover up to 95% of costs.

What is “Income Assurance”? Do you mean Disability Income Insurance (DII)? If so, great. However, the $3,000/month figure could be too low, unless you simply cannot insure for more. Keep in mind that that figure is nominal. One of the DII carriers (not necessarily the best one) offers payout escalation.

If you’re shopping for an Integrated Shield plan rider, you’re looking for one that caps unreimbursed costs for covered services. For example, you (with cash and/or MediSave) cover the first $3,000 per year, and insurance takes over from there. I think pretty much all the available riders do that, or something similar.

This leaves around ~$400 monthly, which I intend to put into some form of endowment plan or WL life (because that money would be "wasted", otherwise).

Does anyone have any advice on how I could best utilize this ~$400 on a monthly basis - i.e. which provider and which plan? I was looking at Great Eastern's Great Wealth Multiplier as recommended by my friend who is an agent.
I may or may not stay in this job for many years, so I do not want to lock myself in for too long.

You could just put any surplus into one of those simple fixed deposit-like endowment plans, treat it like a bond investment, then put the money to better investment use when the policy matures.

Or do you have any dependents? Term life insurance may be advisable if so.

 

[minamikaze]

Yeah, DII. But we have 2 rental properties which are cashflow positive, and enough savings now to pay off our mortgage to the point that we have only about 300K left to pay; and our annual income is such that we should be able to pay that off in 2 years, if we really want to. So, is it still worth paying for DII in our case? I feel like we likely wouldn't need to depend on DII I think, but I may be having the wrong mindset here.

And noted about the integrated shield rider; that's something i will definitely get since the premiums are cheap.

No dependents, just me and my wife.

As for the fixed D-endowment-like plans, I was looking around and the best option seems to be the NTUC Capital Plus, given that the HSBC one has already closed. I don't think there are other better options...?

And thanks for your suggestions!

What is “Income Assurance”? Do you mean Disability Income Insurance (DII)? If so, great. However, the $3,000/month figure could be too low, unless you simply cannot insure for more. Keep in mind that that figure is nominal. One of the DII carriers (not necessarily the best one) offers payout escalation.

If you’re shopping for an Integrated Shield plan rider, you’re looking for one that caps unreimbursed costs for covered services. For example, you (with cash and/or MediSave) cover the first $3,000 per year, and insurance takes over from there. I think pretty much all the available riders do that, or something similar.


You could just put any surplus into one of those simple fixed deposit-like endowment plans, treat it like a bond investment, then put the money to better investment use when the policy matures.

Or do you have any dependents? Term life insurance may be advisable if so.

 

[boredboiboi]

Yeah, DII. But we have 2 rental properties which are cashflow positive, and enough savings now to pay off our mortgage to the point that we have only about 300K left to pay; and our annual income is such that we should be able to pay that off in 2 years, if we really want to. So, is it still worth paying for DII in our case? I feel like we likely wouldn't need to depend on DII I think, but I may be having the wrong mindset here.

And noted about the integrated shield rider; that's something i will definitely get since the premiums are cheap.

No dependents, just me and my wife.

As for the fixed D-endowment-like plans, I was looking around and the best option seems to be the NTUC Capital Plus, given that the HSBC one has already closed. I don't think there are other better options...?

And thanks for your suggestions!

FD liked plans depends if you looking on long and short term or long term. If is long term, there is a type whereby on year 5 onwards and yearly return of guaranteed and non guaranteed can go up to 4+% per year for lifetime.

 

[minamikaze]

Is there any plan where the guaranteed portion is >= 2.5% (with principal guaranteed)?

FD liked plans depends if you looking on long and short term or long term. If is long term, there is a type whereby on year 5 onwards and yearly return of guaranteed and non guaranteed can go up to 4+% per year for lifetime.

 

[boredboiboi]

Is there any plan where the guaranteed portion is >= 2.5% (with principal guaranteed)?

Guaranteed portion more than 2.5% no.. but the one 1 mention is long term and with yearly of about 2-4% and capital will also appreciate even when taking the annual income. Capital is also 100% guaranteed

 

[minamikaze]

So what's the name of that plan?
And what then is the guaranteed return?

Guaranteed portion more than 2.5% no.. but the one 1 mention is long term and with yearly of about 2-4% and capital will also appreciate even when taking the annual income. Capital is also 100% guaranteed

 

[BBCWatcher]

Yeah, DII. But we have 2 rental properties which are cashflow positive, and enough savings now to pay off our mortgage to the point that we have only about 300K left to pay; and our annual income is such that we should be able to pay that off in 2 years, if we really want to. So, is it still worth paying for DII in our case? I feel like we likely wouldn't need to depend on DII I think, but I may be having the wrong mindset here.

It does make sense because you're still apparently ~$300K short, and then there's the fact you're getting some free money to buy it -- quite a nice subsidy.

One way to view DII is to ask this sort of question: "Could we afford to retire right now, fully and permanently, and with some higher ongoing living costs to boot?" (Assume no other insurance payouts here.) If the answer is yes, OK, maybe you can self-insure. (Although if somebody is handing you free money, maybe it's still worth buying.) If the answer is no, then DII is still very important, until you can answer yes.

As for the fixed D-endowment-like plans, I was looking around and the best option seems to be the NTUC Capital Plus, given that the HSBC one has already closed. I don't think there are other better options...?

HSBC Insurance, Prudential, Great Eastern, and Singlife have all offered these fixed deposit-like endowment plans recently. They "pop up" every once in a while. One possible problem is that they might have too high minimums, although Singlife's was pretty low as I recall.

Do they need to be monthly premium plans, or is a single premium OK to absorb this free money? The basic idea here is that you'd be "laundering" the free money in something short term, then finding a more productive use for it upon policy maturity.

....Oh, here's another idea: are you allowed to buy travel medical insurance with this free money, such as Bupa Global's annual multi-trip travel medical insurance (their base plan)? That'd be a very reasonable way to spend this free money, assuming you venture outside Singapore a couple times or more.

Another possibility is a deferred joint/survivor (or joint/continent) insurer guaranteed life annuity, i.e. buying yourself a pension atop CPF LIFE. CPF LIFE is the best deal, but since somebody is handing you free money to buy products that insurance carriers sell, then a life annuity could be a reasonable thing to buy in some measure, after you've nailed down insurance necessities.

Do they let you use this money for home insurance, the home insurance you're already paying for presumably?

 

[FortAir]

Are you more concern with the pricing or the tenure ? I don’t know but the proposed amount of $400, it’s seems like term plans might be what you are looking for

Hi!

I recently got a new job where I will be getting ~S$680 of medical insurance allowance monthly (on reimbursable basis), as part of the benefits. This covers both me and my wife. I can use for any form of insurance, including endowment plans.

Right now, we are both heavily under-insured, because we only have the Private Integrated Shield coverage (up to A ward), and nothing else.
My plan is to spend around $250 monthly for both of us (combined) to get TPD/CI coverage ($200K) + Income assurance ($3000) + IP rider to cover up to 95% of costs.
This leaves around ~$400 monthly, which I intend to put into some form of endowment plan or WL life (because that money would be "wasted", otherwise).

Does anyone have any advice on how I could best utilize this ~$400 on a monthly basis - i.e. which provider and which plan? I was looking at Great Eastern's Great Wealth Multiplier as recommended by my friend who is an agent.
I may or may not stay in this job for many years, so I do not want to lock myself in for too long.

Thanks so much in advance for any suggestions!

 

[cromium7]

Hi all,

I'm looking into reviewing my insurance policy and would like to check with you all if I am adequately covered and if my premium is too much currently:

I'm 31 this year with income around $7k monthly, no dependents and have the following coverage:

-AIA Max Essential A + Healthshield Gold ($1,100 p/yr)
-AIA Guaranteed Protect Plus (Coverage $130,000 premium $2,200 p/yr)
-AIA Power Critical Cover (Coverage $120,000 premium $3,200 p/yr)

-SAF Group Term Life (Coverage $300,000)
-SAF Group Personal Accident (Coverage $100,000)

This means that i'm effectively paying close to $7,000 yearly or $600 p/mth.

Is this considered too much?

 

[Mr. Wood]

Hi all,

I'm looking into reviewing my insurance policy and would like to check with you all if I am adequately covered and if my premium is too much currently:

I'm 31 this year with income around $7k monthly, no dependents and have the following coverage:

-AIA Max Essential A + Healthshield Gold ($1,100 p/yr)
-AIA Guaranteed Protect Plus (Coverage $130,000 premium $2,200 p/yr)
-AIA Power Critical Cover (Coverage $120,000 premium $3,200 p/yr)

-SAF Group Term Life (Coverage $300,000)
-SAF Group Personal Accident (Coverage $100,000)

This means that i'm effectively paying close to $7,000 yearly or $600 p/mth.

Is this considered too much?

guaranteed protect plus is a whole life plan? u hav no dependents u dun need a life plan. u dun even need a term plan. think normal CI and TPD might be cheaper for similar coverage.
wht is yr rational for buying dis?

 

[BBCWatcher]

Yes, I'm also confused like Mr. Wood. And somehow you bought all this insurance (most of which you don't need) without any Disability Income Insurance (DII)? That's strange and disturbing.

 

[boredboiboi]

Hi all,

I'm looking into reviewing my insurance policy and would like to check with you all if I am adequately covered and if my premium is too much currently:

I'm 31 this year with income around $7k monthly, no dependents and have the following coverage:

-AIA Max Essential A + Healthshield Gold ($1,100 p/yr)
-AIA Guaranteed Protect Plus (Coverage $130,000 premium $2,200 p/yr)
-AIA Power Critical Cover (Coverage $120,000 premium $3,200 p/yr)

-SAF Group Term Life (Coverage $300,000)
-SAF Group Personal Accident (Coverage $100,000)

This means that i'm effectively paying close to $7,000 yearly or $600 p/mth.

Is this considered too much?

For the power critical care. Maybe i would suggest getting a single payout, as with that premium you could have a Higher coverage compare to against a multipay.

Example, would you want a payout of 120k or would you wan a payout of 250k when eci/ci strikes?

And i believe the power critical care should be still under freelook period as its just launch recently only.

 

[winthony]

Hi all,

I'm looking into reviewing my insurance policy and would like to check with you all if I am adequately covered and if my premium is too much currently:

I'm 31 this year with income around $7k monthly, no dependents and have the following coverage:

-AIA Max Essential A + Healthshield Gold ($1,100 p/yr)
-AIA Guaranteed Protect Plus (Coverage $130,000 premium $2,200 p/yr)
-AIA Power Critical Cover (Coverage $120,000 premium $3,200 p/yr)

-SAF Group Term Life (Coverage $300,000)
-SAF Group Personal Accident (Coverage $100,000)

This means that i'm effectively paying close to $7,000 yearly or $600 p/mth.

Is this considered too much?

For someone without dependent, you are heavily onto whole life / term plans. Any rationale behind that?

That being said, essentially you have most of what there is out there except DII.

I believe for hospitalisation, Raffles Shield is providing pretty good rates from the back of my head unless you got your shield plan prior to the change in compulsory co-payment and assuming you do not have any condition atm.

 

[xtwis7]

actually DI ranks really low on many others’ priority. At least it’s still pretty well received here.

Have had clients who approached other FAs who turned around to ask why do they want DI. It’s absolutely baffling that they can reply so blatantly.

I still stand firm that DI is way more important than CI.

 

[BBCWatcher]

Have had clients who approached other FAs who turned around to ask why do they want DI. It’s absolutely baffling that they can reply so blatantly.

One problem is that three insurance carriers in Singapore sell DII (AIA, Aviva, and Great Eastern), so if "your" "Financial Advisor" doesn't sell the stuff, then of course your FA is powerfully financially motivated to disparage a product he/she doesn't sell and to push a product (or products) he/she does sell. Somebody has to pay for your FA's luxury automobile, and that somebody is you if you're the mark.

The second problem is that a lot of advisors don't even understand what they're selling.

The third problem is that Singapore is something of a "Wild West" ("Wild East"?) when it comes to most products, including financial services products. There's little or no regulation, so pretty much anything goes, including no fiduciary responsibility obligations. Whatever somebody can sell is fair game, even if whatever they're pushing is wildly inappropriate and/or a poor value.

 

[cromium7]

Hi All,

Thanks for the replies and feedback. The main purpose why i had the AIA GPP plan is due to its limited payment term where i only pay for 20 years, but enjoy coverage for life. That was purchased a couple of years back, primarily as a life insurance since i had none then.

The SAF plans are mainly added because of its cheap premium and good for value term coverage. For the Critical cover, yes its under the free-look period, and having second thoughts of it due to the high premium for a low coverage.