Getting started with insurance

[noobmaster89]

Good to hear you are coping well! Hope you get through it

Yeah, looking through, i guess you can afford to look over some of the plans that could be unnecessary but given your condition, would be ok to leave it for the time being until you are cleared of loading.

By after 65, at what age are you looking at?

By after 65, means rest of life. I’m trying to think if it’s more feasible to get a term coverage for CI. Then invest the difference (in etf or even CPF SA), whcih might give higher returns for any coverage purposes

 

[LexusIS]

Definitely hospitalisation once he or she turns 15 days old. I emphasise again, 15 days old.

If you think that you can’t manage the money by putting in any index funds or don’t want the hassle, endowments vary quite a bit too.

I would say besides getting these 2 for your newborn, do look at term/life coverage for him or her in terms of CI. You don’t want the scenario where one parents, or worse both need to give up their job without income to look after the child.

Lastly, please relook into your own coverage. Especially if you never came across the idea of insuring your income. Just ask yourself, can you sustain the household without any income? I don’t even mean CI level kind of diseases.

Thanks bro xtwis

 

[winthony]

By after 65, means rest of life. I’m trying to think if it’s more feasible to get a term coverage for CI. Then invest the difference (in etf or even CPF SA), whcih might give higher returns for any coverage purposes

Typically, term coverage ends at 85 which does not fit your criteria of rest of life as well.

Perhaps you can considering doing some adjustment to save on premiums if you can opt in the MINDEF group term life.

You have really alot of policies at hand

 

[noobmaster89]

Typically, term coverage ends at 85 which does not fit your criteria of rest of life as well.

Perhaps you can considering doing some adjustment to save on premiums if you can opt in the MINDEF group term life.

You have really alot of policies at hand

Yes I do have that too. But after some calculations, given my circumstances now I Guess it’s more feasible to get a term and invest the rest.

I do have some cover for CI for life as of now (~100k before bonus). Feel free to let me know if you have any other suggestions

 

[winthony]

Yes I do have that too. But after some calculations, given my circumstances now I Guess it’s more feasible to get a term and invest the rest.

I do have some cover for CI for life as of now (~100k before bonus). Feel free to let me know if you have any other suggestions

Understood.

My priority would be

review current portfolio --> combining policies into a product that would be more cost saving --> look at additional product.

Term would be quite affordable given your age and the various providers offering perpetual discount for this quarter

 

[BBCWatcher]

Yes I do have that too.

Anything else you want to mention? You also have 6 other insurance products from France, Canada, and Taiwan, for example?

More seriously, there’s one policy you didn’t list that is a genuine insurance necessity in my view, albeit not too important right now: travel medical insurance if you venture outside Singapore. I haven’t found anything better than Bupa Global’s annual baseline policy, the one you can buy online from their Web site (in British pounds). It’s unlimited worldwide emergency cover. It’s simple travel medical insurance and doesn’t include the crap you don’t need, like reimbursement for a toothbrush you lost.

But after some calculations, given my circumstances now I Guess it’s more feasible to get a term and invest the rest.

You think? In my experience it’s not a struggle to come up with ideas for how to spend money with insurance companies if you actually need insurance.

I’ve asked twice what you’d do with $50K (circa 2055+ deflated Singapore dollars) even if a policy were to pay out (big if), and you’ve avoided answering the question twice. I’ll go out on a sturdy limb and suggest there is no good answer, and thus you really don’t need to recycle your own dollars through an insurance company and its overheads on this occasion. That’s about $100/month, so start by raising your monthly savings flow from $300 to $400. Then do even more than that. (Aren’t both figures too low?) Now’s the time to pay your future self more first. Indeed, it’s past time.

 

[noobmaster89]

Anything else you want to mention? You also have 6 other insurance products from France, Canada, and Taiwan, for example?

More seriously, there’s one policy you didn’t list that is a genuine insurance necessity in my view, albeit not too important right now: travel medical insurance if you venture outside Singapore. I haven’t found anything better than Bupa Global’s annual baseline policy, the one you can buy online from their Web site (in British pounds). It’s unlimited worldwide emergency cover. It’s simple travel medical insurance and doesn’t include the crap you don’t need, like reimbursement for a toothbrush you lost.


You think? In my experience it’s not a struggle to come up with ideas for how to spend money with insurance companies if you actually need insurance.

I’ve asked twice what you’d do with $50K (circa 2055+ deflated Singapore dollars) even if a policy were to pay out (big if), and you’ve avoided answering the question twice. I’ll go out on a sturdy limb and suggest there is no good answer, and thus you really don’t need to recycle your own dollars through an insurance company and its overheads on this occasion. That’s about $100/month, so start by raising your monthly savings flow from $300 to $400. Then do even more than that. (Aren’t both figures too low?) Now’s the time to pay your future self more first. Indeed, it’s past time.

My point is, even with a 100 dollars per month of investment based on 3-4% returns, I can more than cover for that 50k circa 2055. If my calculations are correct of course.

And yes, I already do have monthly 300-400 in rsps and ETFs since I started working a few years back. Not to mention having invested in a few blue chip counters too.

Thanks for the recommendation on the travel insurance, but will look into it only when I have settled my needs first.

 

[BBCWatcher]

My point is, even with a 100 dollars per month of investment based on 3-4% returns, I can more than cover for that 50k circa 2055.

Correct. You don’t need an insurance company in that role unless you can answer the question what urgent need (you cannot reasonably handle on your own) a $50K payout would solve.

 

[noobmaster89]

Correct. You don’t need an insurance company in that role unless you can answer the question what urgent need (you cannot reasonably handle on your own) a $50K payout would solve.

There’s pros and cons to this approach. I’m assuming market is doing well when circa 2055+ , hence I am able to liquidate my funds easily.

Another safe way is to contribute 100 monthly into cpf RA/SA to get a sure 4% return. That being said, no one knows if the min sun will change or any CFP policies will change by then.

Any other methods I can look at?

 

[findmehereeee]

Hello! I just recently took over my insurance plans from my parents and was wondering if i have sufficient coverage? Am new to this whole insurance thing and would greatly appreciate the advice.

F,ANB 25, non-smoker, priority is to get self-insured

Policies on hand:
1.Prudential Headstart with Profits life plan (death/CI - $100k)
2.AIA Premier life plan (death/disability/CI - $100k)
3.NTUC enhanced incomeshield basic hospitalisation
4.NTUC plus rider hospitalisation
Policies on hand total premium approx $3k pa


Was suggested by my insurance agent friend to consider getting coverage for ECI and personal accident? Are they really necessary or is there any other specific policies that i should be considering? I'm currently working on a $3.3k salary. Advice would be greatly appreciated, thanks!

 

[BBCWatcher]

1. Do you have even one dependent? No dependents = no need for life insurance.

2. Hasn't anybody ever heard of Disability Income Insurance?

 

[findmehereeee]

1. The life insurances were purchased by my parents when i was a kid so i can't do much about it?

2. Yea i recently got to know about DII via this thread and am looking at it, was quoted $1,050 pa for GE for a payout of lower of either 50% pre disability income or $4k, is that a good deal?

Is DII more of a necessity than ECI and personal accident?

Really appreciate the inputs! Thank you!

 

[Gogomunch]

What kind of newborn insurance is recommended? Any recommended insurers for this these plans?

- Thinking of hospitalisation plan and endowment plan.

Thanks for all your advice here

Hello, you can check out AIA Healthshield Gold max & we have endowment policies as well. Thank you

 

[BBCWatcher]

1. The life insurances were purchased by my parents when i was a kid so i can't do much about it?

Even better.

You're not required to continue paying premiums. Take a look at whether they make sense to keep or to surrender. I don't prejudge.

For reference -- and this is not a recommendation but just an example -- it looks like it'd cost $355/year for a female age 25 next birthday to get $200,000 of term life insurance to age 65 with TPD and one-time accelerated CI coverage (30 illnesses). That's a quotation from Comparefirst.sg for direct purchase term life insurance.

2. Yea i recently got to know about DII via this thread and am looking at it, was quoted $1,050 pa for GE for a payout of lower of either 50% pre disability income or $4k, is that a good deal?

Are you sure it's 50%? Could it be 75%?

It could be a reasonable premium, but for reference Aviva starts at about $692 per year (after discount). Did the agent select the 6 month deferral and age 65 term for that quotation?

Is DII more of a necessity than ECI and personal accident?

Let's put it this way: which would you rather have if you were to become disabled tomorrow and unable to work for the rest of your life: (1) a one-time $100K ECI payout, or (2) $4K/month starting 6 months from now and to age 65?

Easy decision, right?

 

[Gogomunch]

Hello! I just recently took over my insurance plans from my parents and was wondering if i have sufficient coverage? Am new to this whole insurance thing and would greatly appreciate the advice.

F,ANB 25, non-smoker, priority is to get self-insured

Policies on hand:
1.Prudential Headstart with Profits life plan (death/CI - $100k)
2.AIA Premier life plan (death/disability/CI - $100k)
3.NTUC enhanced incomeshield basic hospitalisation
4.NTUC plus rider hospitalisation
Policies on hand total premium approx $3k pa


Was suggested by my insurance agent friend to consider getting coverage for ECI and personal accident? Are they really necessary or is there any other specific policies that i should be considering? I'm currently working on a $3.3k salary. Advice would be greatly appreciated, thanks!

Hi, when you’re still young and healthy. It is recommended that you consider these policies:

1. critical illness plan
2. Personal accident
3. Savings (Endownment) - save for future or retirement


For Critical illness, there will be changes to the definitions of Critical illness Aug this year. You can consider looking at AIA PWCC (stand-alone critical illness) covers 175 conditions.

1. Power Reset 5x (Early/intermediate/Major)
2. Power Relapse 2x (Early/intermediate/Major)
3. Pre-Early Benefit
4. Special Conditions
5. For Life Plan - surrender benefit 75% of your coverage amount less any critical illness benefit paid.


For Personal Accident, AIA Solitaire PA. It covers dengue fever, food poisoning, sprain ankle, worldwide coverage 24/7, etc. You should consider a personal accident for yourself as it is as Low as $0.50 per day.

For saving plan, you can consider AIA Smart Rewards (II) (have cash coupon) and AIA Smart Growth (II). Depending on what your requirement, there are still other endowment plan under AIA.


If you’re keen to find out more, do let me know.

Thank you

 

[BBCWatcher]

Hi, when you’re still young and healthy. It is recommended that you consider these policies:
1. critical illness plan
2. Personal accident
3. Savings (Endownment) - save for future or retirement

"It is recommended" is doing a lot of heavy lifting there. Who's recommending an endowment plan for example? "Personal Accident"? Insurance salespeople do, of course. Anybody else?

(Lots of AIA policy pitches deleted.)

AIA is one of the three carriers in Singapore that sells Disability Income Insurance. You don't even know your own carrier's products, do you?

 

[Mr. Wood]

AIA endowment BI used to indicate 4+% projected yield
a lot agents back then say AIA many years history can meet target.
recently revised down to 4% or lower.
why ah?

 

[Mr. Wood]

i am of the view dat critical illness is a combination of factors like lifestyle, hereditary, environment, diet etc.
ECI/CI may not be necessary if there is no family history. or can just take up minimal for extra assurance. unlike accident which may happen anytime to anyone.

even if we know the future will tio CI, it is difficult now to guage how much is enuff to complete treatment.

thoughts?

 

[boredboiboi]

Hello! I just recently took over my insurance plans from my parents and was wondering if i have sufficient coverage? Am new to this whole insurance thing and would greatly appreciate the advice.

F,ANB 25, non-smoker, priority is to get self-insured

Policies on hand:
1.Prudential Headstart with Profits life plan (death/CI - $100k)
2.AIA Premier life plan (death/disability/CI - $100k)
3.NTUC enhanced incomeshield basic hospitalisation
4.NTUC plus rider hospitalisation
Policies on hand total premium approx $3k pa


Was suggested by my insurance agent friend to consider getting coverage for ECI and personal accident? Are they really necessary or is there any other specific policies that i should be considering? I'm currently working on a $3.3k salary. Advice would be greatly appreciated, thanks!

As BBC mentioned. First, does it make sense to continue all the plans? As old plan ci conditions covered are lesser. And to see if paying the same premium will geting you much better coverage. Feel free to ask for quotation. I have been assisting to do quotation here for a few years.
Why your friend recommend your accident plan? Because the plan with give the agent com as long as you pay the premium. Its a form of passive of income for the agent. Most people looking for tcm and outpatient coverage bill but most of them companies do covers them for this bill. Hope it helps.

 

[findmehereeee]

Aah i see, seems like i may be overpaying. Ok will consider surrendering and check out Comparefirst.sg.

DII - sorry, corrected it's 75%. Read over several threads that Aviva's DII policy wording isn't the best as such did not consider it. The GE quotation of $1,050 pa is until age 65, deferral of 60 days, was told the deferral period didn't affect the premium but rather the coverage (i.e. lesser of 75% pre-disability income or $4k) did.

Really appreciate the inputs!