Getting started with insurance

[Aresden]

Its just how I feel it is. Generally whole life plans are more costly than term plans. I have a friend who prefers getting term ........

Fundamentally, people buy insurance to get the most value for their bucks.

The cost to coverage ratio is almost always lesser for a term plan as compared to a life plan, and that makes term plans a better choice.

The main purpose you are getting it is to cover your unforeseen circumstances, not for investments.

Of course, we also know that agents earn more selling life(ILP) plans

 

[McFadden]

Fundamentally, people buy insurance to get the most value for their bucks.

The cost to coverage ratio is almost always lesser for a term plan as compared to a life plan, and that makes term plans a better choice.

The main purpose you are getting it is to cover your unforeseen circumstances, not for investments.

Of course, we also know that agents earn more selling life(ILP) plans

if say premium is same 1.5k.then how much more will agent earn?or is the same?

 

[boredboiboi]

if say premium is same 1.5k.then how much more will agent earn?or is the same?

If is same premium. Ilp com is lesser

 

[awayaway]

Hi guys, i have ISP plan with NTUC and my company provides me with a group hospitalisation plan.

Anyone knows if both can be utilised so the costs of deductible and co-payment can be negated?

 

[winthony]

Hi guys, i have ISP plan with NTUC and my company provides me with a group hospitalisation plan.

Anyone knows if both can be utilised so the costs of deductible and co-payment can be negated?

check with your company policy how the sequence of claim should be. normally they would ask you claim your personal one first!

it depends on how the group policy is structured

 

[BBCWatcher]

Hi guys, i have ISP plan with NTUC and my company provides me with a group hospitalisation plan.

Anyone knows if both can be utilised so the costs of deductible and co-payment can be negated?

The answer is yes, you can file claims with both as long as you let both carriers know about each other so they can coordinate. That’s because you’re not allowed to receive more than the total claimable medical bill, which would be a form of insurance fraud.

Your medical providers might offer cashless payment and/or e-filing with one of your insurance carriers, or a discount, and that might influence how you go about filing the two claims (in which order) since one carrier might offer better convenience at the point of service.

If you have Prudential’s PRUShield private hospital Integrated Shield plan with a rider subject to claims-based pricing, you might want to avoid filing a small claim with Prudential and just file a claim only with your employer-provided insurance carrier.

 

[hardwarezoner2]

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.

 

[boredboiboi]

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.

What ur age and what the payment term? 450/month for ci only rider on a wholelife plan is quite expensive

 

[winthony]

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.

Hmm, you are paying ~$5.4k annually for your WL. It’s either attributed to your age or a shorter premium payment term.

Hard to tell because you did not indicate your coverage and basic info! Not all standalone CI plan gives you back your premium if you don’t claim since they are usually term and no cash value as you mentioned as opposed to a whole life which has cash value.

Is your main consideration the money back portion or your premium currently?

 

[awayaway]

The answer is yes, you can file claims with both as long as you let both carriers know about each other so they can coordinate. That’s because you’re not allowed to receive more than the total claimable medical bill, which would be a form of insurance fraud.

Your medical providers might offer cashless payment and/or e-filing with one of your insurance carriers, or a discount, and that might influence how you go about filing the two claims (in which order) since one carrier might offer better convenience at the point of service.

If you have Prudential’s PRUShield private hospital Integrated Shield plan with a rider subject to claims-based pricing, you might want to avoid filing a small claim with Prudential and just file a claim only with your employer-provided insurance carrier.

yeah, ideally i want to claim using my personal one first, then the deductible and co-payment left can be paid up using company.

if it's the other way round, i still need pay the $2500 deducitble and 10% co-payment out of my personal hospitalisation insurance.

 

[hardwarezoner2]

Hmm, you are paying ~$5.4k annually for your WL. It’s either attributed to your age or a shorter premium payment term.

Hard to tell because you did not indicate your coverage and basic info! Not all standalone CI plan gives you back your premium if you don’t claim since they are usually term and no cash value as you mentioned as opposed to a whole life which has cash value.

Is your main consideration the money back portion or your premium currently?

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

 

[boredboiboi]

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

What your age if you dont mind. Maybe we can help u check if there is better alternative

 

[BBCWatcher]

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.

If you have no dependents, you bought the wrong product. However, I can fix that: you're welcome to name me as your beneficiary.

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.

OK, let's just explain how this works: to get $100 more back you have to put $100+$X more in of your own money. So if you want to recycle your own money with a substantial loss versus available alternatives, you can. I think you should pay yourself, but you should it well, meaning take the premium savings, invest them prudently, and don't help pay for your insurance salesperson's next Ferrari (metaphorically or actually).

However, if you're the sort of person who must have an insurance company's premium bill in order to save anything and not buy, for example, heroin, then OK, maybe your insurance salesperson's next Ferrari is a small price to pay in the circumstances. But if you're a reasonably responsible individual, I wouldn't pay more to get less of your own money back.

 

[hardwarezoner2]

I may not have dependants, but I can always name my relatives. At least the money will not be going to waste.

So, on this point, I have a question : suppose I have dependents, but they are later on independent, how does the whole life plan still be relevant?

Anyway I've already paid for one year, and I won't be getting anything back if I cancel it, so I'm not sure if there is any cheaper alternative ?

Perhaps I will just continue with it.

 

[boredboiboi]

I may not have dependants, but I can always name my relatives. At least the money will not be going to waste.

So, on this point, I have a question : suppose I have dependents, but they are later on independent, how does the whole life plan still be the relevant?

Anyway I've already paid for one year, and I won't be getting anything back if I cancel it, so I'm not sure if there is any cheaper alternative ?

Perhaps I will just continue with it.

We have been asking for info. Without info, how can we tell u if there are cheaper alternative?
Ur age , gender, smoker or non smoker.
If u can send the plan details to me, its even better to see if got better alternative.

 

[hardwarezoner2]

Male, non smoker, early 40s

 

[BBCWatcher]

I may not have dependants, but I can always name my relatives. At least the money will not be going to waste.

That’s a very low bar that’s not based on whether you actually need the insurance. You could name a charity as the beneficiary, and the payout wouldn’t go to waste. It might very well be better spent that way.

So, on this point, I have a question : suppose I have dependents, but they are later on independent, how does the whole life plan still be relevant?

The life insurance need has disappeared while you still have insurance. In that event you could surrender the policy if you wish. This is one of several reasons why term life insurance is popular.

Anyway I've already paid for one year, and I won't be getting anything back if I cancel it, so I'm not sure if there is any cheaper alternative ?

Perhaps I will just continue with it.

That sounds like the fallacy of sunk costs. What’s in the past is the past. Now you look at the future and whether you should do something different. If there’s a better choice available that addresses your actual needs, why not?

For example, surely you have Disability Income Insurance, right?

 

[hardwarezoner2]

I do not have disability income insurance. The agent says it is only available as a rider.

 

[hardwarezoner2]

That’s a very low bar that’s not based on whether you actually need the insurance. You could name a charity as the beneficiary, and the payout wouldn’t go to waste. It might very well be better spent that way.


The life insurance need has disappeared while you still have insurance. In that event you could surrender the policy if you wish. This is one of several reasons why term life insurance is popular.


That sounds like the fallacy of sunk costs. What’s in the past is the past. Now you look at the future and whether you should do something different. If there’s a better choice available that addresses your actual needs, why not?

For example, surely you have Disability Income Insurance, right?

Do you have any suggestions ?

 

[boredboiboi]

I do not have disability income insurance. The agent says it is only available as a rider.

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