Getting started with insurance

[boredboiboi]

Male, non smoker, early 40s

I think u can just stick to the plan.

 

[hardwarezoner2]

Which insurer? Disability income insurance standalone available for aviva, aia and ge

Prudential

The Disability income is it term policy ? no cash value?

 

[hardwarezoner2]

I think u can just stick to the plan.

Means continue with my plan ?

I thought so cos I would think that the policies in the market are all the same more or less

 

[boredboiboi]

Means continue with my plan ?

I thought so cos I would think that the policies in the market are all the same more or less

Nope because i gave up as u dont want to give full info to even help u accordingly.
Early 40s can be 40-45.
What is the coverage, without exact info, cant even help u to generate to see if there are better ones. And is there any multiplier, if there is then till what age etc.

 

[boredboiboi]

Prudential

The Disability income is it term policy ? no cash value?

Yes term with no cash value.

 

[winthony]

Premium payment is 15 years. The cost is due to my age. I believe in getting money back if nothing happens.

If you believe in getting your money back if nothing happens then most definitely you should be looking at a product with cash value. At the end of the day, you opt-ed in for the plan and if you feel that there are better alternatives that suit both your needs as well as your personal requirement, by all means

But you have to know exactly why you are getting the insurance for since you mentioned that you may not have dependents then i assumed you are more concerned about critical illnesses whereby you might not have passed on but in dire need of financial support/payout.

Until and unless there is more details regarding your objective of your existing portfolio as well as your details, its hard to say if any other company out there can match your needs and wants accordingly!

For Disability Income Insurance, it is not a must to only be a rider. There are companies that are doing it as a standalone product

 

[BBCWatcher]

DII answers these questions: “What if I were to become disabled tomorrow, unable to work and unable to earn a living (even for the rest of my life)? How would I support even myself, with or without dependents? If I have non-dependent family members, how would I avoid becoming a new dependent and burdening him/her/them?”

So, what’s your current plan for that scenario? Do you have one? Is it a viable plan?

I know of only two viable plans in Singapore to combat this class of risks: (1) self-insure, meaning have a high net worth or at least belong to a family with a high net worth, or (2) Disability Income Insurance.

By the way, why is a “cash value” important? Does your property, automobile, hospitalization, or travel medical insurance (as examples) have “cash value”? As I explained — and it’s absolutely true — any current or future cash value comes from you and your premium dollars, but significantly diluted because the insurance company has to pay its overheads (e.g. sales commissions) and collect a profit. Do you really want to do that? You can if you wish, but why? The only reason I can think of is if you’re just a terrible saver, and you need an insurance company’s premium bill to “force” you to save anything. Then OK, so be it — we all have our flaws. But otherwise, I don’t think it’s a good idea.

Winthony is not correct, with due respect. You don’t get your money back. With cash value insurance plans you get less than your money back versus next best alternatives (regular saving, even halfway prudent investing). As an example, what’s the current cash value on your one year old whole life policy? And oddly enough the more you get back of your own money (the more the cash value) the less insurance protection you get from the policy, other things being equal.

 

[hardwarezoner2]

Nope because i gave up as u dont want to give full info to even help u accordingly.
Early 40s can be 40-45.
What is the coverage, without exact info, cant even help u to generate to see if there are better ones. And is there any multiplier, if there is then till what age etc.

Coverage is 250k. It's a Prulife Multiplier flex plan. Until age 70 the amount starts to drop, as the multiplier effect is only until 69 years old.

 

[hardwarezoner2]

If you believe in getting your money back if nothing happens then most definitely you should be looking at a product with cash value. At the end of the day, you opt-ed in for the plan and if you feel that there are better alternatives that suit both your needs as well as your personal requirement, by all means

But you have to know exactly why you are getting the insurance for since you mentioned that you may not have dependents then i assumed you are more concerned about critical illnesses whereby you might not have passed on but in dire need of financial support/payout.

Until and unless there is more details regarding your objective of your existing portfolio as well as your details, its hard to say if any other company out there can match your needs and wants accordingly!

For Disability Income Insurance, it is not a must to only be a rider. There are companies that are doing it as a standalone product

To be honest, the possibility of disability (as defined by them as unable to perform 3 out of the 6 activities) is very rare in reality, if I'm not wrong. This is partly why I'm not so keen on this part of insurance.

Just curious, what is the premium payment in the market for this Disability insurance ? for a term of say until 70 yrs old.

 

[soneat]

Coverage is 250k. Until age 70 the amount starts to drop. Then it increases again a few years later (why?)

Yes it's a Prulife Multiplier flex plan. So there is multiplier (although I dunno what it really means).

Hi there, u really ought to spend some effort to understand what insurance is all about. The question you need to ask yourself is do you have any clue what you have bought, and what you are paying for.

Unless you have some basic domain knowledge, none of the advice here will make any sense to you.

 

[Okenba]

After some talking to an agent, I bought a whole life plan about a year ago from Prudential 450p/mnth covers Death, TPD and CI. It is costly because I bought it quite late. As I have no dependants, I'm beginning to wonder if I bought the wrong product. After consulting my agent, the company actually has a CI only plan but it has no cash value. I always feel that a plan with cash value would be more worth it cos you will get something back in the end if nothing happens.

I also bought a hospitalization plan (aka Integrated shield) as well from them. This has no cash value as well.

If you have no dependents, you don't really need life insurance.

If you want CI protection, then focus on that. Ask yourself what you need the money for?
Medical bills? Should be covered by Health Insurance (Shield Plans)
Cost of Living? That means you're affected enough that you have to stop working. (I assume you're currently working). Disability Income Insurance helps fill this gap. (By the way, DII is not the same as TPD.)

So you really should work out first what your expenditure will be like if you get hit by CI. Then you will know how much protection you need. Then work out what plans you need to buy.

Otherwise, there will be a high chance that you will overspend on insurance.

To be honest, the possibility of disability (as defined by them as unable to perform 3 out of the 6 activities) is very rare in reality, if I'm not wrong. This is partly why I'm not so keen on this part of insurance.

Just curious, what is the premium payment in the market for this Disability insurance ? for a term of say until 70 yrs old.

Disability Income Insurance is not the same as Total Permanent Disability Insurance.

 

[hardwarezoner2]

I just discovered something extremely shocking ! It was confirmed by my agent.

The surrender value table is not accurate !

The column "total amount of premiums paid" does not take into account the premiums paid by my CI rider. It only takes into account the premiums paid by the main policy (death and TPD), hence the amounts are all not accurate !

Please take a look at your surrender value tables (any other tables).

 

[soneat]

I just discovered something extremely shocking ! It was confirmed by my agent.

The surrender value table is not accurate !

The column "total amount of premiums paid" does not take into account the premiums paid by my CI rider. It only takes into account the premiums paid by the main policy (death and TPD), hence the amounts are all not accurate !

Please take a look at your surrender value tables (any other tables).

There is nothing shocking. This has always been the way the illustration is being prepared.

You need to read thru and understand each and every word in the presales benefit illustrations, policy schedule, policy conditions and all other documents presented.

 

[hardwarezoner2]

So you really should work out first what your expenditure will be like if you get hit by CI. Then you will know how much protection you need. Then work out what plans you need to buy.

May I ask how much is the expenditure if one is hit by CI ?

 

[hardwarezoner2]

There is nothing shocking. This has always been the way the illustration is being prepared.

You need to read thru and understand each and every word in the presales benefit illustrations, policy schedule, policy conditions and all other documents presented.

Isn't that extremely misleading?? And the rationale is ?

Understand each and every word of that 100 plus pages document? Yes I agree with you but I dun think most people could.

 

[Okenba]

May I ask how much is the expenditure if one is hit by CI ?

Assuming your health insurance will pay everything, then you're fine in terms of medical bills.

So the question is cost of living.
DII can be structured for you to claim up to 75% of your income, so if you get DII and you spend less than 75% of your income, your COL is covered as well.

Otherwise, if you google, I think you can find that the recommendation is 1yr of expenditure for eCI and 5 years for CI. Why this is so, I don't know.

 

[xtwis7]

Let me clarify. Disability income or income protection covers you in the event where you are unable to work in your current/any occupation depending on which company due to any injury or illness.

The 3/6 activities of daily living (ADLs) are only used when you suffer a disability while you are not working, which is exactly the same as Eldershield/CareShield.

Currently only 3 players offer DI namely AIA, Aviva and GE. The maximum term as of now js till 65 years old so if you need a GE quote, will need some details on your occupation, age next birthday as well as the insured monthly benefit that you’re looking at.

To be honest, the possibility of disability (as defined by them as unable to perform 3 out of the 6 activities) is very rare in reality, if I'm not wrong. This is partly why I'm not so keen on this part of insurance.

Just curious, what is the premium payment in the market for this Disability insurance ? for a term of say until 70 yrs old.

 

[hardwarezoner2]

Assuming your health insurance will pay everything, then you're fine in terms of medical bills.

So the question is cost of living.
DII can be structured for you to claim up to 75% of your income, so if you get DII and you spend less than 75% of your income, your COL is covered as well.

Otherwise, if you google, I think you can find that the recommendation is 1yr of expenditure for eCI and 5 years for CI. Why this is so, I don't know.

What is eCI ?

My main concern is actually medical bills.

 

[soneat]

Isn't that extremely misleading?? And the rationale is ?

Understand each and every word of that 100 plus pages document? Yes I agree with you but I dun think most people could.

No that is not misleading to me.

Well, you paid the insurance premium with your hard earn money. Therefore, preferably you should also make an effort to know thoroughly what you are paying for before buying.

 

[Okenba]

What is eCI ?

Early Critical Illness.

My main concern is actually medical bills.

Then make sure your Integrated Shield Plan is solid.