Getting started with insurance

[Kimberlynghh]

DPS - dependent protection scheme
if u no dependents, dun need. seriously, the sum assured is so low dat it probably covers funeral expenses. and 1-2 weeks living expenses for the family.
and it pays out only in death. means bed ridden cannot claim. hand break leg break cannot claim. langgar car cannot work cannot claim.

so bottom line, wht is yr concern and wht u hope to achieve?

Usually Death is not very important unless you have dependents. So when you look for plans, you want to have plans that can cover Early, Intermediate and Critical Stage Illnesses. Terminal Illness just means its impossible to recover from it. The reason why ES, IS and CS are the most crucial in life plans its because they also cost the most especially since during the recovery phase you mostly likely are unable to work. Now, for DPS, as the name suggests Dependent Protection Scheme, is only useful if you have dependents. Usually parents get for their children, because I have it too.

Medishield Life is the compulsory one where every Singaporean has but usually its not very substantial because of the coverage firstly, and you are only entitled to B2/C wards. Sounds nice but not ideal if you are in pain and have to wait 4/5 hours for a bed. I know cause my grandmother had to wait for a bed.

 

[Kimberlynghh]

So I read all the links but I'm still quite lost. Would you still opt to get it if u are a 30years old male non smoker and equiped with all the necessary insurance like careshield, CI, Whole life and all?

btw I also heard that DPS is good after reading the PolicyPal website but I'm am unsure

It really depends on what you are looking at and what existing plans you have on hand. Its a little hard to identify what's good and not good for you if you don't have an overall view of your existing plans? But protection wise, you must make sure to cover 4 areas. Hospital/Life/Income Disability/Accident

 

[Kimberlynghh]

Would like to check with you guys here.

Is it a 'rule of thumb' to always have the insurance coverage payout of 10x your salary?

I have a lifeplan (PruLife) which started around 4 years ago. The same agent did a review recently and told me that my insurance coverage should be 10x of my pay, and eventually urged me to sign up for a term plan in order to 'top up' my coverage in order to achieve the requirement above.

With both plans running concurrently, it cost around $225 per month, and I began to question is it really necessary. Does 'risk level' play a part here? I don't drink or smoke, work in office but I don't drive. Got married recently but no kids yet.

Would appreciate any comments regarding me holding both term and life plan just to meet the 10x salary coverage payout. Thanks.

Hey Majora,

Lets put it this way... Any person working will eventually grow older and also gain more experiences. So as they do so, their standard of living also increases, so expenses also increase. As of now, you are married, are you planning to have kids, buy a house etc? How much is your current coverage? Is the Term plan just to increase coverage? Hows your family history like? I can only say, as for now, I only do 5x of annual income coverage for my clients because majority find that 10 years is a little much for them. That is taking into consideration all the factors.

Term plan is a temporary solution for a temporary problem, has 0 returns, usually don't recommend getting that unless you're old like my mum and it costs her like 18k to cover herself for a life plan or you don't mind just putting money to cover yourself.

 

[fantastyy]

Is it very important to prepare a good financial portfolio? Because I feel just saving money is a pretty good effort for my future..
https://www.policypal.com/blog/insurance/financial-portfolio-age/

 

[xtwis7]

Financial portfolio doesn’t just mean investments. All your effective savings can still be wiped out without proper insurance planning.

Is it very important to prepare a good financial portfolio? Because I feel just saving money is a pretty good effort for my future..
https://www.policypal.com/blog/insurance/financial-portfolio-age/

 

[Kimberlynghh]

So sorry just starting out to buy insurance. I have been reading ‘till 65’. This means coverage is only till 65 years right?

While whole life policies, pay to 65 years old, coverage is still death?

Yes it means you're cover until age 65. If the plan states, Whole Life, it means they coverage is for life!

If your plans is a whole life coverage, usually the payment term is can be like 20 years 25 years.

For Multiplier usually your sum assured is multiplied by a certain amount and the multiplied sum assured should cover you till maybe 70/75 depending on the plan

Usually till 65, could be for Early Stage/Intermediate Stage Critical Illness or if you choose a term plan, to cover you till 65.

 

[Kimberlynghh]

Is it very important to prepare a good financial portfolio? Because I feel just saving money is a pretty good effort for my future..

Firstly you need to understand that SAVINGS is different from Life Coverage/Accumulation. Its good to have savings but you need to ensure that when you cannot work, these savings can sustain your lifestyle. For financial planning there are 3 aspects you need to consider to have a good portfolio. As you grow older your needs may change, so your portfolio should follow and suit those needs. The 3 aspects are Protection, Accumulation and Legacy.
At the end of the day, you want to maximise your dollar and ensure that you are making your money work harder for you

 

[Mr. Wood]

juz to clarify: CPF life, medishield life, careshield life
as long as continue to pay premiums, all these are really coverage for life (ie no upper age limit), right? live until 120yo and beyond still cover?

 

[BBCWatcher]

juz to clarify: CPF life, medishield life, careshield life
as long as continue to pay premiums, all these are really coverage for life (ie no upper age limit), right? live until 120yo and beyond still cover?

Yes, you're correct.

With the classic CPF Retirement Sum Scheme, it was/is easy to outlive the simple payouts from your CPF Retirement Account. CPF LIFE eliminates that particular risk: you receive monthly payouts for the rest of your life, however long it lasts.

With classic MediShield, benefits ended at age 92 and there was a lifetime payout limit (S$300,000). MediShield Life, introduced on November 1, 2015, eliminates both of those restrictions.

With ElderShield, payouts only last for a fixed term (60 or 72 months maximum depending on the ElderShield variant), regardless of how long you live with the claimable disability. CareShield Life pays a monthly benefit for as long as the claimable disability lasts, even for the rest of your life if that's how long it lasts.

 

[qooqoo72]

Hi all, not sure if this is the right place to ask this but I'm having some trouble with my insurance portfolio.
I have a few policies from GE: 1. WL(ERB) 100k 2. WL-CBNS-FNC 100k 3. Totalshield - Platinum
4. Smart Protect RP(II) with
Life Secure Rider 65 (2k),
ACCP II Rider: Death (200K),
ACCP II Rider: Major Permanent Disability (200K),
ACCP II Rider: Other Permanent Disability (200K),
ACCP II Rider: Total Disability ($500)
ACCP II Rider: Medical Exp Reimbursement (10K)
Critical Care Advantage (100K)
5. Great Protector Classic (500K)
6. Aviva Wholelifeplan III x2 Multiplier 75k w TI TPD and ECI

GE plans was bought by my parents for me and I'm actually considering to surrender the Smart Protect RP(II) as I do my own investments, and I feel that the premium is too expensive for me to afford. I mentioned that to my agent and I'm advised that I will not be adequately covered when I surrender the ILP and the riders. Would appreciate if anyone could kindly give me some perspective on this. I am 27, earning 60K PA, and I do not have any dependents at the moment. I'm not sure if I left out any information that is necessary.

 

[boredboiboi]

Hi all, not sure if this is the right place to ask this but I'm having some trouble with my insurance portfolio.
I have a few policies from GE: 1. WL(ERB) 100k 2. WL-CBNS-FNC 100k 3. Totalshield - Platinum
4. Smart Protect RP(II) with
Life Secure Rider 65 (2k),
ACCP II Rider: Death (200K),
ACCP II Rider: Major Permanent Disability (200K),
ACCP II Rider: Other Permanent Disability (200K),
ACCP II Rider: Total Disability ($500)
ACCP II Rider: Medical Exp Reimbursement (10K)
Critical Care Advantage (100K)
5. Great Protector Classic (500K)
6. Aviva Wholelifeplan III x2 Multiplier 75k w TI TPD and ECI

GE plans was bought by my parents for me and I'm actually considering to surrender the Smart Protect RP(II) as I do my own investments, and I feel that the premium is too expensive for me to afford. I mentioned that to my agent and I'm advised that I will not be adequately covered when I surrender the ILP and the riders. Would appreciate if anyone could kindly give me some perspective on this. I am 27, earning 60K PA, and I do not have any dependents at the moment. I'm not sure if I left out any information that is necessary.

Old ilp can actually stop premium anytime already and go premium holiday. Old ilp are front end load, thus even if premium holiday, there wont be extra charges on top of the normal charges. You can still keep the coverage if you need to. For ilp, cost of insurance will continue to rise as you age.

 

[qooqoo72]

Old ilp can actually stop premium anytime already and go premium holiday. Old ilp are front end load, thus even if premium holiday, there wont be extra charges on top of the normal charges. You can still keep the coverage if you need to. For ilp, cost of insurance will continue to rise as you age.

Thank you for the kind advice, will look into it!

 

[boredboiboi]

Thank you for the kind advice, will look into it!

You are welcome =)

 

[Kimberlynghh]

Hi all, not sure if this is the right place to ask this but I'm having some trouble with my insurance portfolio.
I have a few policies from GE: 1. WL(ERB) 100k 2. WL-CBNS-FNC 100k 3. Totalshield - Platinum
4. Smart Protect RP(II) with
Life Secure Rider 65 (2k),
ACCP II Rider: Death (200K),
ACCP II Rider: Major Permanent Disability (200K),
ACCP II Rider: Other Permanent Disability (200K),
ACCP II Rider: Total Disability ($500)
ACCP II Rider: Medical Exp Reimbursement (10K)
Critical Care Advantage (100K)
5. Great Protector Classic (500K)
6. Aviva Wholelifeplan III x2 Multiplier 75k w TI TPD and ECI

GE plans was bought by my parents for me and I'm actually considering to surrender the Smart Protect RP(II) as I do my own investments, and I feel that the premium is too expensive for me to afford. I mentioned that to my agent and I'm advised that I will not be adequately covered when I surrender the ILP and the riders. Would appreciate if anyone could kindly give me some perspective on this. I am 27, earning 60K PA, and I do not have any dependents at the moment. I'm not sure if I left out any information that is necessary.

Hi qooqoo72,

Actually you can do without your Great Protector cause you already have your ACCP II. I do not recommend surrendering the Smart Protect Plan, if your parents have been paying for it for awhile I am actually with GE and you like booboo said you can always let your investments service your premiums and you need not pay for them. Its called a premium holiday. If you need help, feel free to ask!

 

[ranchfarm]

Hi, any expert has opinion of the CareShield supplements like this?
https://www.greateasternlife.com/content/dam/great-eastern/sg/homepage/personal-insurance/our-products/health-insurance/great-careshield/great-careshield-brochure.pdf
It looks to me similar in nature to disability income in that it does continual payout if something bad happens, except that it's for after 65.

 

[winthony]

Hi, any expert has opinion of the CareShield supplements like this?
https://www.greateasternlife.com/content/dam/great-eastern/sg/homepage/personal-insurance/our-products/health-insurance/great-careshield/great-careshield-brochure.pdf
It looks to me similar in nature to disability income in that it does continual payout if something bad happens, except that it's for after 65.

Hello!

Currently there are 3 companies providing supplements for CareShield Life, namely : NTUC, Aviva, GE.

CareShield Life works differently in terms of claims definition because it is based on your ability to perform ADLs whereas Disability Income from the various different providers do have allow claims during your work years based on a different set of definition.

Yeap! For most DII, it ends at 65 whereas CareShield Life goes on all the way till death.

 

[ranchfarm]

Hello!

Currently there are 3 companies providing supplements for CareShield Life, namely : NTUC, Aviva, GE.

CareShield Life works differently in terms of claims definition because it is based on your ability to perform ADLs whereas Disability Income from the various different providers do have allow claims during your work years based on a different set of definition.

Yeap! For most DII, it ends at 65 whereas CareShield Life goes on all the way till death.

Thanks for the information!
This forum has taught us "buy health insurance, DII, Mindef group term, avoid all other type of insurance".
I'm just wondering whether this new type of insurance will fit into the recommended set of insurance.

 

[winthony]

Thanks for the information!
This forum has taught us "buy health insurance, DII, Mindef group term, avoid all other type of insurance".
I'm just wondering whether this new type of insurance will fit into the recommended set of insurance.

No worries! End of the day, get products that suit your needs rather than mindlessly opting in for them. I believe there would be products that are suitable for different individuals.

CareShield Life is a good initiative since it covers pre-existing illnesses unlike ElderShield. The payout also last for your entire lifetime if there should be any claims, I would say its pretty worth considering!

 

[exterminazn]

No worries! End of the day, get products that suit your needs rather than mindlessly opting in for them. I believe there would be products that are suitable for different individuals.

CareShield Life is a good initiative since it covers pre-existing illnesses unlike ElderShield. The payout also last for your entire lifetime if there should be any claims, I would say its pretty worth considering!

Well you can’t opt out of careshield life, so there is no consideration on our side.

Unless you are referring to the upgraded version

 

[exterminazn]

Thanks for the information!
This forum has taught us "buy health insurance, DII, Mindef group term, avoid all other type of insurance".
I'm just wondering whether this new type of insurance will fit into the recommended set of insurance.

There’s no perfect formula la

If you are able to manage investment yourself with decent returns, then ya just get term, shield

Dii only apply for working adults though