Saving plans or Insurance plans?

[nicholas_lee31]

Hi guys,

Need some advice as to what to do with investment.
I am a newbie to this.

Quick bio: SG, 24, non-smoker.

Here is my plans:
1) Regular saving plan ~ 10-15% of income
- That is more or less cfmed
- Based on research i will go with CIMB

2) Insurance plan ~ willing to put about 300-500 monthly?
- need some advice on what to buy!? so many plans out there
- my goal is i want some form of protection and shorter term payout
- i saw there is NTUC income's reach? and afew others

3) Build dividends paying shares...
- any advices to get started?
- Im reading up on this at the moment.

thanks everyone!

 

[elysdeon55]

1) Regular savings plan ~10-15% of income until you have ~6 months + of monthly expenses saved (aka emergency fund). The rest can invest.

2) Insurance just buy term insurance to cover your working life until age 65. For $100 a month you can get $600K death coverage. Or get a combi of death coverage and critical illness term plan together with a disability income (if you sick and cannot work every month pay you). For ~$150 you can get disability income of ~$3000 p.m to 65 and term/CI coverage of about $150k.

Insurance plans with savings (ILP / endowment) usually not very worth due to high service fees (for ILP) or insufficient insurance coverage (endowment).


3) buy high dividend blue chip stocks, keppel corp, some of the reits and maybe STI ETF.

 

[tanjhj]

in the insurance industry. my advice/suggestion are:
1. avoid prudential/aia/manulife policy at all cost. go for ntuc or Ge policy.

2.if u need life / saving. if you ask me, just buy term and invest the rest to bonds funds if u want fixed payout

3. and some to equity funds for some long term appreciation else go buy bluechip stocks that pay alot of dividends like banks/smrt/property/reits (best buy them during recession when the dividend is abt 5-10% per year).

4.cheapest term is saf term or ntuc Luv (need union membership)

5.get the best hospital and surgery policy. if you can afford it. opt for private and daily cash rider (daily cash is to help offset the 10% deductible and also give some form of cash if you are self employed.

6.disability - if you are self employed, best get this. etc. my friend is in courier biz. he drive his own van and delivery good. he happen to broke his hand and now cannot carry as heavy goods as before hence his income drop from 6-8k to now 3k plus as he cant work as long and cant carry heavy goods. if he has disability policy, he will rcvd some money to partially cover the difference in income due to his drop in income resulting from his injury. (but this plan is not cheap)

 

[Darkzi0n]

it is difficult for ppl to advise u if u dont share more info about ur financial position.. which is kind of sensitive to be shared online.

anyway, as some suggested, jus save up for the emergency fund first before u start tabbling the stock market.
if u have the time to invest on urself, try to avoid unit trust or investing through insurance company... altho one of the selling point they always say is that they are professionally managed, there is a study conducted which shows that they generally do not outperform the market... and choosing a fund is no diff from betting on which fund would perform better.

As for insurance need, a 24 yo would probably need to be covered for death, total and permanent disability (tpd) and Critical illness.. and also u will definitely need hospitalization and surgical coverage.

if u r interested, u can pm me, i can link u up to my friend who is in GE.

 

[wolfberries]

Hi guys,

Need some advice as to what to do with investment.
I am a newbie to this.

Quick bio: SG, 24, non-smoker.

Here is my plans:
1) Regular saving plan ~ 10-15% of income
- That is more or less cfmed
- Based on research i will go with CIMB

2) Insurance plan ~ willing to put about 300-500 monthly?
- need some advice on what to buy!? so many plans out there
- my goal is i want some form of protection and shorter term payout
- i saw there is NTUC income's reach? and afew others

3) Build dividends paying shares...
- any advices to get started?
- Im reading up on this at the moment.

thanks everyone!

1) Yes. CIMB is good. I oso just opened.
But its still a foreign bank afterall.
Only two branches in sg lo.
govt MAS guarantee up to $50K per person name under each bank.
Haa. Just spread out ya savings with various banks.

2) Look for an independent financial adviser instead ba.

Bcos they can sell all the various insurance policies under different companies.

If you find agents frm individual companies, they are can do is to sell you their own companies' products.

REM INSURANCE IS A FORM OF PROTECTION
dun get trapped with insurance + investment policy.

3) Mi too. Im learning how to buy dividends too
Get a trustworthy fren who already start to invest to coach you.

Good luck!

 

[nicholas_lee31]

thanks everyone for your replies!

 

[stlinking]

Hi Nicholas,

I have just dropped you a private message.

Cheers
Kevin

 

[chopra]

Threadstarter, insurance is a LONG TERM committment. Remember to talk to people, agent and non-agent. Get perspectives from all sides. Going the wrong way is like ******* RAW. RAW is WAR.

My same advice to all: Buy TERM and HOSPITALISATION and invest the rest on your own. Your addressing post suggest you know a bit on investment. Read more and DIY.

300-500monthly is TOO MUCH. Buy a term of ~$250k + hospitalisation cost you around $200 AT MOST.

Don't forget all of us have DPS (paid by CPF). Ask, if you don't know what's that.

cheers.

 

[chopra]

my compilation on INSURANCE hospitalisation, if you have not bought.

 

[nicholas_lee31]

wow! thanks chopra for that post. sorry but i dont really quite get this, care to explain?

Also what is this DPS (paid by CPF)?

 

[MisterLim001]

have anyone heard of dental insurance before?

 

[Darkzi0n]

wow! thanks chopra for that post. sorry but i dont really quite get this, care to explain?

Also what is this DPS (paid by CPF)?

dps is dependent protection scheme. everyone sld be on this scheme (not sure can opt out anot). basically it covers u against death and tpd for 46k.

for term, u can look at the SAF one if u dont alr have it.. it is one of the cheapest term plan out there. but it onli covers u for death and tpd.

 

[blurblur123]

Why dun buy prudential?

 

[WuMing1234]

my compilation on INSURANCE hospitalisation, if you have not bought.

I dont understand your compilation. That is the premium? Care to elaborate ?

 

[PruCorgi]

2) Look for an independent financial adviser instead ba.

Bcos they can sell all the various insurance policies under different companies.

If you find agents frm individual companies, they are can do is to sell you their own companies' products.

Actually, independent financial advisers can't sell every company's insurance plans either, but they have the most choices available. Sometimes the best plan out there isn't with any of their options either.

Also, with regards to claims/service/etc., an insurance company will tend to be most responsive to the sales channel that gives it the bulk of its sales/profit, which tends to be one of its tied agencies. Something to keep in mind, IMO.

I'm not knocking independent financial advisers, but these points are sometimes overlooked.

In the end, it's still dependent on the individual adviser's integrity/honesty. You can find good ones in both tied agencies and independent financial advisers.

 

[chopra]

I dont understand your compilation. That is the premium? Care to elaborate ?

yes that is premium that covers medical fees including deductibles and co-insurance. which terminology do you need clarification?

 

[bakasa2002]

Bro chopra, trying to understand how the co-payment of he income differ from others. I'm on income cos I notice premium is lower than the rest. Is it a better deal in that sense since the 10% cap at 3k can most likely be covered by medisave?

 

[tiny]

have anyone heard of dental insurance before?

dun think it exists as far as cosmetic and general hygiene (bi-annual scaling and polishing) is concerned.

maybe company can claim, that's it.

 

[WuMing1234]

yes that is premium that covers medical fees including deductibles and co-insurance. which terminology do you need clarification?

As far as i know, deductible and co-insurance are both packaged under AIA GOLD essential. Once you include that in your basic hospital plan, there is no difference between 'A' ward and 'Private' ward.

There is basically no change in premiums regardless of the classification of wards when essential is bought. As far as i know, only deductibles changes between different wards but once essential is included, the premiums should be the same.

The table included deductibles and co-insurance in P and A wards so there should be no difference since you are allowed to choose any wards(P or A) when they are bought. So the table should be classified into "With or without deductible bought" instead of P and A ward? Please let me know if i got it wrong.

 

[chopra]

Bro chopra, trying to understand how the co-payment of he income differ from others. I'm on income cos I notice premium is lower than the rest. Is it a better deal in that sense since the 10% cap at 3k can most likely be covered by medisave?

Yes and no.

I leave the interpretation to ur own.

As long as u have a shield plan, that's gd enough.