Getting started with insurance

[BBCWatcher]

Previous participating life insurance was really good, especially from Tokio Marine and NTUC Income.

Compared to stuffing cash in a biscuit tin, absolutely. Compared to accumulating a couple low cost index funds, no, not at all. Once access to low cost index funds became "democratized" several years ago the insurance companies lost their investment-related advantages.

However, insurance companies still offer premium bills. Some people need premium bills to save anything, or to save as much. But I think Regular Savings Plans (RSP) into low cost index funds can work even better for most people. Though there are some people who need the pain of a low or zero policy surrender value to maintain savings discipline.

Donkey years ago, my colleague bought, from NTUC Income, whole life and endowment which gives really good return of ~4.75% and using it to fund the children's education.

Right, "donkey years ago," back in the "stone ages" when you couldn't click/tap on your smartphone to buy $500 worth of a low cost index fund (or a couple funds). Or schedule a RSP stream to do the same. If such vehicles had existed they would've beaten 4.75% running away and with the same portfolio risk (same mix of stocks and bonds).

There's a reason whole life insurance products are losing insurance marketshare in most countries. Insurance consumers are generally more savvy and have more viable alternatives now.

My family bought for me a participating whole life from GE 30 years ago and it has grew consistently at 4.8% until 1.5 years back when they done a massive cut. Right now the IRR still stands at 4.3%.

Yeah, back 30 years ago when you had to call a broker on the (wired) telephone or visit his/her office, and minimum viable investments were $10,000 and up with minimum $100 commissions — or something like that, anyway — what your neighborhood insurance agent was selling was often comparatively more attractive. We have more competitive alternatives now, thank goodness.

If bought early and with the right insurer, it can be an asset and part of your overall asset portfolio,

The vehicle that worked best 30 years ago isn't necessarily the best vehicle today. The core philosophy (diligent savings behavior) still holds true.

 

[BBCWatcher]

Just to follow up on this, the world's first index fund available to individual ("retail") investors was only introduced on December 31, 1975 (really 1976). That wasn't even 50 years ago, and it was only available in the United States at that time (from Vanguard). It was a mutual fund, comparable to a unit trust. There's no reason why either mutual funds or unit trusts need to have high management fees (high expense ratios). Vanguard helped drive down the cost of mutual funds with its pioneering index funds. SPY, the first exchange-traded index fund, was only introduced in 1993 — barely 30 years ago.(*)

It took several years longer before low cost index funds (and more tax appropriate ones) became reasonably available to retail investors in Singapore. For example, MBH, the Singapore dollar corporate bond index fund, was only introduced on August 27, 2018. A35 is much older (August 31, 2005) and wasn't bad, but MBH is more appropriate as the primary bond vehicle within a long-term investment portfolio for a typical retail investor planning to retire in Singapore.

It's important to factor relevant innovations into today's (and tomorrow's) investment decisions.

(*) That was just before I started (quite young!) on my investing journey. When I started low cost index mutual funds were well established, and that's what I did. They've worked great, but (for my situation) ETF equivalents are a little better for tax reasons. So I've shifted to a couple ETFs (one in particular) for incremental savings/investments over the past few years. That's working great, too. I plow dividends from the mutual funds into the ETFs along with additional savings.

As a counterpoint, my father bought a whole life insurance product (or a couple) since that was the best he could do. Different era, different choices.

 

[English Teacher]

anyone did a freelook with Prudential?

i am very paiseh and dont wish to go through my agent for this

 

[reddevil0728]

anyone did a freelook with Prudential?

i am very paiseh and dont wish to go through my agent for this

i don’t think when it comes to money there’s a need to feel paiseh.

not at your own detriment.

 

[DanielRFL]

Just wondering if there is anyone that can advise/quote for Allianz International Health Insurance? Currently in SG but will retire in 5 years time in MY/BKK hence looking for coverage.

Would like to have high limit for outpatient plans.

Core: Singapore Classic Individual
Outpatient Rider: Singapore Silver Individual / Singapore Gold Individual

45 ANB
MALE
NON-SMOKER

 

[boredboiboi]

Just wondering if there is anyone that can advise/quote for Allianz International Health Insurance? Currently in SG but will retire in 5 years time in MY/BKK hence looking for coverage.

Would like to have high limit for outpatient plans.

Core: Singapore Classic Individual
Outpatient Rider: Singapore Silver Individual / Singapore Gold Individual

45 ANB
MALE
NON-SMOKER

Let me check and get back to u soon

 

[boredboiboi]

Just wondering if there is anyone that can advise/quote for Allianz International Health Insurance? Currently in SG but will retire in 5 years time in MY/BKK hence looking for coverage.

Would like to have high limit for outpatient plans.

Core: Singapore Classic Individual
Outpatient Rider: Singapore Silver Individual / Singapore Gold Individual

45 ANB
MALE
NON-SMOKER

Hi,

here is the premium.


Core: Singapore Classic Individual
Outpatient Rider: Singapore Silver Individual

Premium: USD$19829.28
SGD$27555.22

Core: Singapore Classic Individual
Outpatient Rider: Singapore Gold Individual

Premium: USD$ 22035.44
SGD$30620.28

 

[dev_stg_prd]

already have hospital plan + private rider.

left

• Term life (rule of thumb: 10x income or enough to cover spouse + child to age 25)
• Critical illness / Disability income
• CareShield Life supplements

can the above DIY or should go thru agent. CI got early and late.. how to apportion ah? any webbie that I can take reference from to self calculate if DIY? do I save a lot.. tks

 

[reddevil0728]

already have hospital plan + private rider.

left

• Term life (rule of thumb: 10x income or enough to cover spouse + child to age 25)
• Critical illness / Disability income
• CareShield Life supplements

can the above DIY or should go thru agent. CI got early and late.. how to apportion ah? any webbie that I can take reference from to self calculate if DIY? do I save a lot.. tks

In order for you to know whether you save a lot, you will still need an agent to quote you if it’s done through agent right?

why don’t start with that first.

can also check out direct purchase insurance website - comparefirst / see respective insurer website.

since you are wiling to DIY liao, then you have to go through all these yourself.

 

[dev_stg_prd]

• CareShield Life supplements

I tihnk more or less looking at SingLife's standard. just wondering how much additional benefits that you guys are looking at ? $2,000 since the stock Careshild gives $600 ?

 

[reddevil0728]

• CareShield Life supplements

I tihnk more or less looking at SingLife's standard. just wondering how much additional benefits that you guys are looking at ? $2,000 since the stock Careshild gives $600 ?

the maximum you can get with the premium you pay using MA that doesn't touch additional cash?

 

[dev_stg_prd]

the maximum you can get with the premium you pay using MA that doesn't touch additional cash?

In a way can use the website to check la. But just wondering if you got it and how much and your train of thoughts

 

[reddevil0728]

In a way can use the website to check la. But just wondering if you got it and how much and your train of thoughts

You know insurance varies by many different attributes one right

 

[dev_stg_prd]

You know insurance varies by many different attributes one right

Actually is the $ benefit that one can adjust .

 

[reddevil0728]

Actually is the $ benefit that one can adjust .

But ppl of diff age and gender diff premium what