Getting started with insurance

[boredboiboi]

Hi guys, i have a newborn. Planning to get the following:

Life- AIA GUARANTEED PROTECT PLUS (III)
Personal Accident- Sompo PA Junior
Healthcare- AIA HealthShield Gold Max Special A with Rider: AIA Max VitalHealth

Any thoughts? Most of my family's insurance are with AIA as we have an agent that is responsive and good but open to changing if there are better policies out there.

PA and healthcare personally think is good. But with so many years of comparing for wholelife plan, AIA is the most expensive in the market.

 

[Simiishthis]

ah, me thinks so too! Singlife Aviva and NTUC income looks the most reasonable now. What would you recommend?

 

[Thoreldan]

Hi experts, I've quit smoking for 9mths now. If I purchase a new policy, can I safely just indicate as non-smoker ?

 

[boredboiboi]

ah, me thinks so too! Singlife Aviva and NTUC income looks the most reasonable now. What would you recommend?

Anything that gives u a reasonable premium?

 

[boredboiboi]

Hi experts, I've quit smoking for 9mths now. If I purchase a new policy, can I safely just indicate as non-smoker ?

Usually is more than 1 year of quiting. If they send u to check up, must not have nicotine content

 

[silentears]

can i ask something stupid - what is the recommended % of salary to spend on insurance?
if i take $4k --> should i minus off cpf = $3.2 then take 10% or i should take 10% from 4k which is about $400.

Asking because $400 i need to split into hos, Disability protection, term, life?
i realised not really enough as hospital will increase every year
should i take out hospital insurance expense and calculate?

 

[silentears]

btw just wanna ask for disability income protection - say if i am drawing 4k per mth and i wanna be insured for the 4k.
the max they will pay out is only 75% right - i mean like u cant go over the 4k drawn* salary.

 

[BBCWatcher]

can i ask something stupid - what is the recommended % of salary to spend on insurance?

There is none. That's a trope that insurance salespeople like, but it has no financial validity. However, if the percentage is "high" then something is probably wrong, or at least that's a good reason to take a closer look.

if i take $4k --> should i minus off cpf = $3.2 then take 10% or i should take 10% from 4k which is about $400.

Neither. Figure out what you actually need (if anything), then find the best value products.

Asking because $400 i need to split into hos, Disability protection, term, life?
i realised not really enough as hospital will increase every year
should i take out hospital insurance expense and calculate?

Typically your salary/wages will rise with age, although that's not a guarantee. In my view anything above a public hospital B1 ward Integrated Shield plan (with lowest cost rider) is certainly not an insurance necessity. So if you're pricing out something above that level then "right size" and run the numbers again.

Usually the words term and life go together (term life insurance). Did you mean to put a comma in there? And life insurance (insurance that pays a death benefit when the policyholder dies) is only required if you have at least one genuine dependent and you cannot adequately self-insure. No dependents = no need for life insurance.

btw just wanna ask for disability income protection - say if i am drawing 4k per mth and i wanna be insured for the 4k.
the max they will pay out is only 75% right - i mean like u cant go over the 4k drawn* salary.

That's correct. With $4,000/month of gross average salary (before the employee's share of CPF contributions) you can insure up to $3,000/month (75%) with a DII policy. If for example you "always" get a 13th month bonus then you can bump that up to $3,250/month (75% of $4,000 * 13/12). Or $3,200/month, because typically the carrier allows $100/month increments.

 

[boredboiboi]

can i ask something stupid - what is the recommended % of salary to spend on insurance?
if i take $4k --> should i minus off cpf = $3.2 then take 10% or i should take 10% from 4k which is about $400.

Asking because $400 i need to split into hos, Disability protection, term, life?
i realised not really enough as hospital will increase every year
should i take out hospital insurance expense and calculate?

$400/ month which is $4800 per year. Why not enuf? How do you break down that makes you think its not enough?

 

[silentears]

There is none. That's a trope that insurance salespeople like, but it has no financial validity. However, if the percentage is "high" then something is probably wrong, or at least that's a good reason to take a closer look.

Neither. Figure out what you actually need (if anything), then find the best value products.

Typically your salary/wages will rise with age, although that's not a guarantee. In my view anything above a public hospital B1 ward Integrated Shield plan (with lowest cost rider) is certainly not an insurance necessity. So if you're pricing out something above that level then "right size" and run the numbers again.

Usually the words term and life go together (term life insurance). Did you mean to put a comma in there? And life insurance (insurance that pays a death benefit when the policyholder dies) is only required if you have at least one genuine dependent and you cannot adequately self-insure. No dependents = no need for life insurance.

That's correct. With $4,000/month of gross average salary (before the employee's share of CPF contributions) you can insure up to $3,000/month (75%) with a DII policy. If for example you "always" get a 13th month bonus then you can bump that up to $3,250/month (75% of $4,000 * 13/12). Or $3,200/month, because typically the carrier allows $100/month increments.

thanks for sharing.

$400/ month which is $4800 per year. Why not enuf? How do you break down that makes you think its not enough?

did about 2 weeks of research to plot some numbers. adulting 101 is hard, so far the agents i met were not really helpful irl (sourced via company website). Probably have to split the insurance policies and get them separately instead of going via 1 company

Just some estimation:

$4k salary -> 10% budget = $400, $450 = 0.11%
Budgeted $251 for Hospital Private = $21/mth
Budgeted $604 for Disability Income Protection for 4k (75%) = $50/mth
So left with $328//$378 for term or/and life

I am still trying to min-max the term and/ or life insurance portion
why life insurance - to get maybe 100k insured for Early CI and CI after the term expires at age 70. Might not need the multiplier so can cut cost since have Term portion to cover. However, most of them like singlife comes with the multiplier.

Term insurance
-factors to consider = term until 70 or 75, but price shoots up quite abit and after "retiring 65" i have to think about how to maintain the payment
- for the Multi-pay it is definitely more expensive compared to the traditional term

Analysis:
- dependent = 1, might be 2 in the future.
- Base on 4k income / $48,000 anually
- Total Insured against death + TPD = $48k X 10 =$500k roughly
- Total Insured Early CI = $48k X 2 = $100k roughly
- Total Insured Ci = $48 X 5 = $300k roughly
- Assuming i live to 75 (average life span male = 83.5 in SG).
- the multi pay rider term costs $100k for 75 years, cost so much more than a life plan - i was just thinking it maynot be worth it, kinda like might as well i pay life insurance for that price.

So brings me to the question of how to breakdown the term + life portion to get the above coverage. the numbers look okayish now because single, say if i get a house everything all go up. Furthermore, hopsitalisation will go up every year (based on this for comparison)

Spoiler

Will need to switch to A class in about 50 years old.

 

[boredboiboi]

thanks for sharing.


did about 2 weeks of research to plot some numbers. adulting 101 is hard, so far the agents i met were not really helpful irl (sourced via company website). Probably have to split the insurance policies and get them separately instead of going via 1 company

Just some estimation:

$4k salary -> 10% budget = $400, $450 = 0.11%
Budgeted $251 for Hospital Private = $21/mth
Budgeted $604 for Disability Income Protection for 4k (75%) = $50/mth
So left with $328//$378 for term or/and life

I am still trying to min-max the term and/ or life insurance portion
why life insurance - to get maybe 100k insured for Early CI and CI after the term expires at age 70. Might not need the multiplier so can cut cost since have Term portion to cover. However, most of them like singlife comes with the multiplier.

Term insurance
-factors to consider = term until 70 or 75, but price shoots up quite abit and after "retiring 65" i have to think about how to maintain the payment
- for the Multi-pay it is definitely more expensive compared to the traditional term

Analysis:
- dependent = 1, might be 2 in the future.
- Base on 4k income / $48,000 anually
- Total Insured against death + TPD = $48k X 10 =$500k roughly
- Total Insured Early CI = $48k X 2 = $100k roughly
- Total Insured Ci = $48 X 5 = $300k roughly
- Assuming i live to 75 (average life span male = 83.5 in SG).
- the multi pay rider term costs $100k for 75 years, cost so much more than a life plan - i was just thinking it maynot be worth it, kinda like might as well i pay life insurance for that price.

So brings me to the question of how to breakdown the term + life portion to get the above coverage. the numbers look okayish now because single, say if i get a house everything all go up. Furthermore, hopsitalisation will go up every year (based on this for comparison)

Spoiler

Will need to switch to A class in about 50 years old.

If you want get wholelife, then can go all wholelife actually because multiplier is just like adding term plan into but limited pay else I dont see any reason splitting into term and wholelife unless budget issue.
Or should i ask why you wan to split into term and wholelife?
But with $328/$378 per month is more than enough to get a wholelife plan with a very decent coverage for your age for 25 years limited pay.
Anyway i am an agent that are able to do multiple companies and quotations from multiple companies =)

while premium goes up for hospital plan, at the same time your income also goes up. And alternatively you can drop to lower class if need be. Hope this helps your worries on the premium keep going up

* example for wholelife for multiplier.
100k with 5 times multiplier is like buy 100k wholelife with 400k term plan. Multiplier add on is cheaper than no multiplier. Say 100k base x 5 vs 500k base x 1

 

[BBCWatcher]

Budgeted $251 for Hospital Private = $21/mth

OK, but that's not a genuine insurance necessity. Start with the best "as charged" public hospital B1 ward plan (with lowest cost rider) for you then re-run the numbers. (For a Singaporean citizen it'll be either Great Eastern or Singlife, and for a PR it'll be Singlife.) If you then want to spend more of your monthly/yearly income on non-necessities (luxuries) of any sort — Gucci handbags, for example — then that's a separate question.

Budgeted $604 for Disability Income Protection for 4k (75%) = $50/mth
So left with $328//$378 for term or/and life

I am still trying to min-max the term and/ or life insurance portion
why life insurance - to get maybe 100k insured for Early CI and CI after the term expires at age 70. Might not need the multiplier so can cut cost since have Term portion to cover. However, most of them like singlife comes with the multiplier.

If you're eligible for the Singlife MINDEF/MHA group term life insurance then just get that (assuming you even need life insurance — do you have any dependents?) Otherwise, head over to CompareFirst.sg and price term life insurance to age 65. For example, a hypothetical 30 year old (age next birthday), male, nonsmoker would pay Tokio Marine $752 per year (equivalent to $62.67 per month) for S$400,000 of term life insurance to age 65 with TPD and their CI accelerator rider. If you delete the CI rider it's even less.

You're allowed to buy 2 or more direct purchase policies if you wish. For example if you need S$500,000 of term life coverage then you could buy one S$300,000 policy (term to age 65) then another S$200,000 policy (20 year term). For example. If you include the CI rider with both then there you go, there's your "multipay" (two possible payouts in this example).

Term insurance
-factors to consider = term until 70 or 75, but price shoots up quite abit and after "retiring 65" i have to think about how to maintain the payment

Why would you get life insurance that runs so long? Are you planning to be working at age 68, 72, or 74? You would have a dependent at that age, that dependent would lose your income (since you're dead), and your remaining estate couldn't financially support your dependent? REALLY? That's just not realistic, is it?

What is life insurance supposed to do? It's supposed to support your dependent(s) financially after you, an income earning individual, die. That's the only point of life insurance (insurance that pays a death benefit). But are you an income earning individual supporting a dependent at age 70? No, you're not. Or at least that'd be extremely unlikely.

For some weird reason(s) insurance companies in Singapore will sell you practically anything. It doesn't mean the particular policy makes any logical or financial sense.

 

[MrSinkie95]

any aia agent here?

 

[reddevil0728]

any aia agent here?

Do you mean you are looking for AIA agent to contact you? or you have something that you want to clarify but will only post if there is?

 

[boredboiboi]

any aia agent here?

Ifa agent that carries aia plan can?

 

[CrashWire]

There is none. That's a trope that insurance salespeople like, but it has no financial validity. However, if the percentage is "high" then something is probably wrong, or at least that's a good reason to take a closer look.

I think a better way to rephrase it is how many percentage of one's salary should one "save" (into index funds etc, since they're equivalent or better than buying ILPs).

If you want get wholelife, then can go all wholelife actually because multiplier is just like adding term plan into but limited pay else I dont see any reason splitting into term and wholelife unless budget issue.
Or should i ask why you wan to split into term and wholelife?

I don't understand your logic. You could have a small sum assured, then invest the rest yourself, no?

 

[Diversenzaki]

Hi, can someone quote me whole life multiplier plan with regards to the following conditions?

Female, anb 30, non smoker.
Death/TPD - 100k (base)
ECI - 100k (base)
CI - 100k (base)
Multiplier effect - 2X and 3X
Multiplier effect ends - 65 yrs old and 70 yrs old
Payment term - 25 yrs

 

[boredboiboi]

Hi, can someone quote me whole life multiplier plan with regards to the following conditions?

Female, anb 30, non smoker.
Death/TPD - 100k (base)
ECI - 100k (base)
CI - 100k (base)
Multiplier effect - 2X and 3X
Multiplier effect ends - 65 yrs old and 70 yrs old
Payment term - 25 yrs

Hi,
It cant be done. I believe u got quote from pru then this might works.
Base eci+ci cannot be more than base death/tpd.

most insurers eci covers all stages, and ci only covers late stages.
From what i know only ntuc and pru eci does not covers late stage.

which means pru and ntuc 100k eci + 100k ci is equal to other insurers 100k eci

so I assume u wan base 100k death/tpd and base 100k eci?

ntuc and p ci and 100k eci - if late stage hit first, only 100k will payout

while other insurer 100k ci + 100k eci, if late stage hit first, 200k will payout

will quote for u 100k base death/tpd and eci

1) x 2 till age 65
SA - $2878/year
M - not available, only till 70 or 80

2) x3 till age 65
SA - $3472/year
M - not available, only till 70 or 80

3) x2 till age 70
SA - $3025/year
M - $3264.99/year

4) x3 till age 70
SA - $3780/year
M - $3754.71/year

 

[exterminazn]

Hi, can someone quote me whole life multiplier plan with regards to the following conditions?

Female, anb 30, non smoker.
Death/TPD - 100k (base)
ECI - 100k (base)
CI - 100k (base)
Multiplier effect - 2X and 3X
Multiplier effect ends - 65 yrs old and 70 yrs old
Payment term - 25 yrs

Hi,

below GE quote with only payment terms 20yrs

X2 multiplier till 65: $3615.20/year
X2 multiplier till 70: $3792.75/year

X3 multiplier till 65: $4440.40/year
X3 multiplier till 70: $4795.50/year

Cheers

 

[jtec14]

Hi all,

May I know limited payment whole life coverage is till what age? Is it till 99 years old which I sort of have an impression that IFA mentioned that like 15 years ago?

Have limited whole life for ntuc vivolife and tokio marine lifesecure (spouse) but totally forgotten about when the coverage end.
Based on benefit illustration, it only showed up to 69 years old and 65 years old respectively.

Thank you.