Getting started with insurance

youJSKM

youJSKM

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year2013 said:
Age 36, looking for Term Insurance (100yrs), got quote from Prudential as follows:
Premium $5300+ (30 years)
Sum assured 1million in case of death.

Is there anything I should bw worried about, any fine prints which I need to check?
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You may consider buying a term to age 65 or 66 (30 year term). The premium for such a term policy can be as low as $762.60 for your age.

You can then invest the difference ($5300 - $762.60) of $4537 every year for the next 30 years (eg. ETFs, Robo, stocks etc)

If you pass on before age 66, your loved ones will receive $1,000,000 sum assured + your investment portfolio.

If the investment grows at 8% pa, you will have $513,966 at age 66. If you let this investment grow by itself till age 85 (SG life expectancy), the portfolio can potentially be $2,218,123.

Advantages of this strategy:
  • Less financial commitment ($5300 vs $762.60)
  • Family can receive $1,000,000 sum assured + your investment portfolio if OP dies young
  • More liquidity in old age: portfolio can be liquidated in times of emergency
  • Can leave a potentially larger legacy that grows with time (est. > $2,000,000 at age 85)
Disadvantages:
  • Porfolio may be less than $1,000,000 when OP is below age 75: Smaller legacy for family if OP dies between age 67- 75
  • OP may squander away the savings of $4537 instead of investing
Overall, I think the pros outweigh the cons of this strategy.
 
tsnd01

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How much commission does an insurance agent usually earn for a *** (return of premium) policy?
 
youJSKM

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tsnd01 said:
How much commission does an insurance agent usually earn for a *** (return of premium) policy?
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For a what policy?

If you scroll through the Policy Illustration, you can find a table showing "Total Distribution Cost To-date". The main bulk of this distribution cost is meant for agent's commission. This can run for 5 years or more. However, the first year's commission is the highest.
 
luckygal

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Can I check for Hospital Plan, if one has a a few years of history with a clinic, how to retrieve the record from the clinic? My friend checked with her clinic and her doctor said they only email insurance company and they charge. My friend said she is willing to pay but clinic claimed they usually only give to insurance company and not patients. What silly logic! Then how my friend get all records to declare truthfully?
 
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reddevil0728

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luckygal said:
Can I check for Hospital Plan, if one has a a few years of history with a clinic, how to retrieve the record from the clinic? My friend checked with her clinic and her doctor said they only email insurance company and they charge. My friend said she is willing to pay but clinic claimed they usually only give to insurance company and not patients. What silly logic! Then how my friend get all records to declare truthfully?
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GP or specialist?
 
reddevil0728

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luckygal said:
Clinic so I assume GP
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can also be specialist clinic.

i mean it is strange that the clinic or at least the doctor upon verification cannot look through the notes and just inform your friend what are the key themes she went to see the doctor for.

unless they lost the record.

though i think the minimum record retention is 7 years.

so unless they previous use paper and they they move to digital. so they sent all the paper records for archival and it cost a lot more to retrieve
 
luckygal

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reddevil0728 said:
can also be specialist clinic.

i mean it is strange that the clinic or at least the doctor upon verification cannot look through the notes and just inform your friend what are the key themes she went to see the doctor for.

unless they lost the record.

though i think the minimum record retention is 7 years.

so unless they previous use paper and they they move to digital. so they sent all the paper records for archival and it cost a lot more to retrieve
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So you’re asking to bring along pen and paper to consult doctor? And jot down on this date see doc for xxx and on that date see doc for zzzz. Then pay consultation fee. Am I right?
 
reddevil0728

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luckygal said:
So you’re asking to bring along pen and paper to consult doctor? And jot down on this date see doc for xxx and on that date see doc for zzzz. Then pay consultation fee. Am I right?
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assuming they will even entertain that.

though if u read the rest of my post there might be some other reason why they make it difficult for u to do so
 
luckygal

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reddevil0728 said:
assuming they will even entertain that.

though if u read the rest of my post there might be some other reason why they make it difficult for u to do so
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Why would they not? Doc has to tell her right. If not how is she going to declare?
 
xtwis7

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luckygal said:
Can I check for Hospital Plan, if one has a a few years of history with a clinic, how to retrieve the record from the clinic? My friend checked with her clinic and her doctor said they only email insurance company and they charge. My friend said she is willing to pay but clinic claimed they usually only give to insurance company and not patients. What silly logic! Then how my friend get all records to declare truthfully?
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If it’s a private clinic one can easily pay and request for it.
 
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