Getting started with insurance

[CrashWire]

Consider also what group this is: MINDEF/MHA. While there's no explicit guarantee, does anyone really think the government wouldn't step in and protect this group in the unlikely event Aviva won't?

The government has put a price tag on a Singaporean life before: ~$130k x an arbitrary 2x-4x multiplier.

 

[BBCWatcher]

Here’s another way to think of it. Do you think a war or act of terrorism that wipes out >0.75% of MHA/MINDEF policyholders within a year (essentially it’s that) would be the sort of event that insurance companies in Singapore could survive if they don’t have war or terrorism exclusions? Come on, get real. Moreover, Aviva isn’t saying zero here. They’re saying in that black swan event (an epic national calamity we’re talking about) payouts could be reduced somewhat.

If this is the sort of stuff that makes you worry (it really shouldn’t, but if), why not increase the sum assured under the group plan? Then you’re still better off.

Or go buy offshore term life insurance, preferably from a couple different countries’ insurers, because nothing in Singapore is going to be safe from this class of risks.

 

[reddevil0728]

The government has put a price tag on a Singaporean life before: ~$130k x an arbitrary 2x-4x multiplier.

i think some countries gets 0

 

[zeezeex]

Hello. Can I ask if budget is a concern. Should I lower my sum assured or the number of years?

 

[reddevil0728]

Hello. Can I ask if budget is a concern. Should I lower my sum assured or the number of years?

Number of years meaning?

 

[zeezeex]

Number of years meaning?

Coverage till what age

 

[boredboiboi]

Hello. Can I ask if budget is a concern. Should I lower my sum assured or the number of years?

Both can be done, but u cover till what age? If is 70 or 75, suggestion is go to 65/70, the age of retirement. If still burst den reduce sum assured.

 

[soneat]

Hello. Can I ask if budget is a concern. Should I lower my sum assured or the number of years?

My opinion is to reduce the number of years. Main reason is because it is because the financial risk is greater at the earlier part of your life and the cost of insuring these earlier years is lower.

You can also explore decreasing (instead of level) term insurance, so that the premium gets even lower and you get more coverage at the earlier part of your life.

 

[winthony]

Hello. Can I ask if budget is a concern. Should I lower my sum assured or the number of years?

Hmm, in my opinion, reducing the coverage years would be a better choice. Your premium is determined by both the sum assured and length of coverage so by lowering the number of years covered, it would help in the premium side of things.

Aside from that, the idea is that you would want to have a larger sum of payout in the event something unfortunate occurs when the financial implication of that is more of a concern as compared to you in your 70s~80s

 

[xtwis7]

Hello. Can I ask if budget is a concern. Should I lower my sum assured or the number of years?

If you have to really decide between the two, stick to the sum assured that you need and reduce the duration if necessary.

This is because we get insurance planning for the event where if something were to happen tomorrow so you don't want to be in a situation where your family doesn't have the sufficient coverage.

 

[BBCWatcher]

You can also "layer" term insurance. For example, you could have:

$300K of term life insurance to age 55
$300K of term life insurance to age 65

With the idea being that your insurance needs are greater initially then reduce over time, as you save and accumulate wealth. Of course you should compare this to $600K running to age 65. Sometimes policy pricing can be "weird." But the core principle makes sense.

 

[soneat]

zeezeex said:
Hello. Can I ask if budget is a concern. Should I lower my sum assured or the number of years?

My opinion is to reduce the number of years. Main reason is because it is because the financial risk is greater at the earlier part of your life and the cost of insuring these earlier years is lower.

You can also explore decreasing (instead of level) term insurance, so that the premium gets even lower and you get more coverage at the earlier part of your life.

1. Also, depending on what's available on the market, having a larger sum decreasing term insurance is likely to be much more cost effective than 2 layered level term insurance due to the large sum discount (again, depending on insurer).

2. Not sure of your age and gender but for the budget conscious, you can consider group insurance:
i) Aviva GTL, S$4.1 per month per 100k, up to age 65. Cover can be as big as S$1m
ii) GE DPS (Up to S$70K), plus GE GoGreat Term Life (up to S$500K). For age 34 and below, the annual premium is ONLY S$18 and S$128.6 per year.
If you are say 20yo, the above combination is not bad as GE's group insurance is dirt cheap for 34 and younger.
Having said the above, do take note of the limitations and T&Cs of group insurance.

 

[bbwinnie1]

Yes there are. Term plans can customize to what you want ur coverage until. Till 70/75 almost available for most insurers but which has better deal only will know after quotation.

Hi, do you mind sharing the quotations for the term plans?

I'm personally looking at 500k death & TPD, CI/ECI cover at 200k

Female, Non-smoker, am 26 this year. So my term would be either 44/49 following the coverage of age 70/75.

I am more interested in lower premiums however, are any significant differences between higher prices and lower prices considering the same coverage? would it be more worthwhile to consider higher premiums one?

Any help would be greatly appreciated. Thank you all

 

[boredboiboi]

Hi, do you mind sharing the quotations for the term plans?

I'm personally looking at 500k death & TPD, CI/ECI cover at 200k

Female, Non-smoker, am 26 this year. So my term would be either 44/49 following the coverage of age 70/75.

I am more interested in lower premiums however, are any significant differences between higher prices and lower prices considering the same coverage? would it be more worthwhile to consider higher premiums one?

Any help would be greatly appreciated. Thank you all

You are welcome.

Usually not much difference between them as they got a guildline to follow. And some didnt go for the cheapest as they are not comfortable with the particular insurer.

i can quote for you but maybe more detailed information.
26 is next or last birthday? 200k ci/eci means 200k eci and 200k ci or 200k eci(as eci covers all stages if thats what u mean)
Note : eci covers all stages of critical illness, ci covers only late stages of critical illness.

will quote for you once u provide the information else quote will not be accurate.

 

[bbwinnie1]

Also, one more quick question. Noticed many of you here are talking about the importance of having Disability Income plans.

Could I also get some quotes on this? Thank you!!!

 

[boredboiboi]

Also, one more quick question. Noticed many of you here are talking about the importance of having Disability Income plans.

Could I also get some quotes on this? Thank you!!!

Yes u can. How much income of disability u r looking at, till what age, and deferred period of 3 or 6 months. And do u need the income of escalating beneift at 3% to beat inflation?
And do reply the previous post to quote for term.

 

[reddevil0728]

Also, one more quick question. Noticed many of you here are talking about the importance of having Disability Income plans.

Could I also get some quotes on this? Thank you!!!

regarding disability income... just because everybody say is important. doesn't mean it is to you. need to understand your objective and what insurance you have and don't have.

 

[xtwis7]

Hi, do you mind sharing the quotations for the term plans?

I'm personally looking at 500k death & TPD, CI/ECI cover at 200k

Female, Non-smoker, am 26 this year. So my term would be either 44/49 following the coverage of age 70/75.

I am more interested in lower premiums however, are any significant differences between higher prices and lower prices considering the same coverage? would it be more worthwhile to consider higher premiums one?

Any help would be greatly appreciated. Thank you all

Based on a very straight forward coverage that you requested, essentially there’s not much difference between the insurers.

For ECI, some companies may cover a few more conditions but even then, it’s not a deal breaker as it can be one of those really rare conditions.

Will quote you for GE term. I believe the $200k ECI/CI refers to a plain coverage of $200k in event of CI or ECI and not $200k x2 right?

 

[xtwis7]

Also, one more quick question. Noticed many of you here are talking about the importance of having Disability Income plans.

Could I also get some quotes on this? Thank you!!!

My rationale is that besides CI and ECI, there are many other ways that can cause you to lose your job hence losing your income.

How it works is that in event of any injury or illness, if you lose your income eg. Long term MC due to cancer/stroke or any other conditions, your income can be protected up to 75% beyond a specified waiting period (60/90/180 days). The longer the waiting period the lower the premiums naturally.

Without knowing how much your income you wish to protect and what’s your current occupation, quoting is not possible.

 

[bbwinnie1]

You are welcome.

Usually not much difference between them as they got a guildline to follow. And some didnt go for the cheapest as they are not comfortable with the particular insurer.

i can quote for you but maybe more detailed information.
26 is next or last birthday? 200k ci/eci means 200k eci and 200k ci or 200k eci(as eci covers all stages if thats what u mean)
Note : eci covers all stages of critical illness, ci covers only late stages of critical illness.

will quote for you once u provide the information else quote will not be accurate.

Hello!

26 is last birthday since my birthday already passed this year?

For ECI: $200K since it covers all stages

Thank you!!