Savings plan (insurance)

[Chisaki]

Hi guys, I am currently in NS and on the no call list. Recently this Insurance Agent called me to tell me I have a “session” with him, to talk about some savings plan. 3 questions, how on earth did he get my number (never talked to any Insurance Agent before), should I go listen to his sales pitch and what insurance should I consider buying?

 

[moejoseph]

Hi guys, I am currently in NS and on the no call list. Recently this Insurance Agent called me to tell me I have a “session” with him, to talk about some savings plan. 3 questions, how on earth did he get my number (never talked to any Insurance Agent before), should I go listen to his sales pitch and what insurance should I consider buying?

If it is a referral or somehow you gave your number away during a survey, then they can call you within a period of timeline. But if not, you can tell the agent off that you are in the DNC list. Most insurers should have a phone system to filter off those DNC list directly before calling.

Get your hospitalisation and term life checked first. Aviva one with SAF is quite good and cheap.

Usually i won't propose agents to sell any other plans to NSF, because paying premium could be an issue, especially if they are going on to study uni after ORD-ing. Some agents like to try their luck and propose saving plans, but risk having their BSC getting infracted when the clients jist decided to stop paying due to budget issues.

Always: Health -> Protection -> Saving -> Investment

 

[BBCWatcher]

Get your hospitalisation and term life checked first.

Life insurance is utterly useless for somebody who doesn't have any dependents. Don't you bother to ask that basic question first? Moreover, MINDEF/MHA already provides S$150,000 of life insurance under its Core Scheme.

Chisaki wrote he's "currently in NS," and there's medical coverage, too.

....Shall we sanity check these ideas first? I think that'd be a good idea! Let's start with understanding what genuine needs there are (probably not many), what coverage already exists, and then figure out whether there's anything genuinely important that's missing. (Answer: "Not usually.")

 

[moejoseph]

Life insurance is utterly useless for somebody who doesn't have any dependents. Don't you bother to ask that basic question first? Moreover, MINDEF/MHA already provides S$150,000 of life insurance under its Core Scheme.

Chisaki wrote he's "currently in NS," and there's medical coverage, too.

....Shall we sanity check these ideas first? I think that'd be a good idea! Let's start with understanding what genuine needs there are (probably not many), what coverage already exists, and then figure out whether there's anything genuinely important that's missing. (Answer: "Not usually.")

Bro BBC, though i agree with some of your ideas, and you are probably a veteran in the industry, but i believe all of us are entitled to our opinions too. Just like you who are always pushing for Raffles Shield or Disability Income.

I have mentioned before in past threads that i deemed life insurance as my most important. To a NSF, yes maybe he does not have a need yet, but what makes you think his parents are not his dependent? SAF coverage is definitely not sufficient, should anything happen like the few military incidents. Which is why i believe, Aviva is giving a talk to all NSFs in Tekong for them to upgrade their term coverage as well.

I believe TS here is seeking advice for what insurance to look at after his NS stints, am i wrong to advice the basic structure, rather than him getting advised by the agent who is trying to sell him saving plan straight, when he probably does not have much income right now?

 

[moejoseph]

Perhaps let me share a bit on why i feel Life Insurance is important also. It does not necessary have to be leaving something behind for your dependants only (assuming dependants here =/= parents as mentioned by a few forumers) .

Am rushing for time, so sorry if i missed out some points or explanations in details. But TLDR, i hope the gists are there.

- Life Insurance can help to pay off debts if the life assured has got any.

Most debts/liabilities such as bank/study/car loans.. won't be so nice to be cancelled once a person dies. So these debts/liabilities will most likely pass on to the family members. And if a single without life insurance is to pass away, his parents will have to take over these debts. Imagine your parents are already preparing to retire, but in the end have to take out their retirement money just to settle these.

Similar as with the Home Protection Scheme or any mortgage insurance, but those only loom at housings. What about the other debts?

I believe there are special cases where the debts can be waived, but not common.


- Life Insurance as a base for TPD/ECI/CI riders.

Most of us know that death is not jialat, but what is if we do not die but suffer heavy expenses (medical, homecare, equipment etc.)? Time will be an issie as well. Cases like TPD will require someone to care for us, while ECI & CI requires heavy treatment. For someone who does not have any dependant, will we want our parents to take care of us for the rest of our life? It certainly helps if there can be payout to engage a helper, and to offset the other expenses required.

Of course we can say we might as well die in these cases, but which parents will be willing to leave their children to die in these cases? I believe most will try to save them/care for them when there are still hopes.

There are definitely standalone plans out there for these, but they are also more expensive than riders, and more comprehensive than what we need/looking for. A life plan + riders, will ensure payout in every possible senarios.


Above are solely my opinions. My parents are not well-to-do, and i am still single. I saw the hardships they have to go through to raise me and my siblings up, scrimping whenever they can to give us food and education.

So i hope that if i am not around, i can lessen their financial burden, or at least use the payout to enjoy life and go for a better retirement.

 

[justwakeup]

Perhaps let me share a bit on why i feel Life Insurance is important also. It does not necessary have to be leaving something behind for your dependants only (assuming dependants here =/= parents as mentioned by a few forumers) .

Am rushing for time, so sorry if i missed out some points or explanations in details. But TLDR, i hope the gists are there.

- Life Insurance can help to pay off debts if the life assured has got any.

Most debts/liabilities such as bank/study/car loans.. won't be so nice to be cancelled once a person dies. So these debts/liabilities will most likely pass on to the family members. And if a single without life insurance is to pass away, his parents will have to take over these debts. Imagine your parents are already preparing to retire, but in the end have to take out their retirement money just to settle these.

Similar as with the Home Protection Scheme or any mortgage insurance, but those only loom at housings. What about the other debts?

I believe there are special cases where the debts can be waived, but not common.


- Life Insurance as a base for TPD/ECI/CI riders.

Most of us know that death is not jialat, but what is if we do not die but suffer heavy expenses (medical, homecare, equipment etc.)? Time will be an issie as well. Cases like TPD will require someone to care for us, while ECI & CI requires heavy treatment. For someone who does not have any dependant, will we want our parents to take care of us for the rest of our life? It certainly helps if there can be payout to engage a helper, and to offset the other expenses required.

Of course we can say we might as well die in these cases, but which parents will be willing to leave their children to die in these cases? I believe most will try to save them/care for them when there are still hopes.

There are definitely standalone plans out there for these, but they are also more expensive than riders, and more comprehensive than what we need/looking for. A life plan + riders, will ensure payout in every possible senarios.


Above are solely my opinions. My parents are not well-to-do, and i am still single. I saw the hardships they have to go through to raise me and my siblings up, scrimping whenever they can to give us food and education.

So i hope that if i am not around, i can lessen their financial burden, or at least use the payout to enjoy life and go for a better retirement.

I think in sg, debt is not passed down to your family, unless you are joint house owner (mortgage) or joint loan account or joint-whatever. Whatever debt you have left over will be recovered from what $$$ or properties that you have left over. If your debt is more than what you have, I don't think it will be passed down to your family. Creditors will have to swallow it

 

[Zenest]

Hi guys, I am currently in NS and on the no call list. Recently this Insurance Agent called me to tell me I have a “session” with him, to talk about some savings plan. 3 questions, how on earth did he get my number (never talked to any Insurance Agent before), should I go listen to his sales pitch and what insurance should I consider buying?

Its always good to find out your options, but from a trusted source.
If the agent tries to "scam" you with a prearranged "session", he will probably not be the best person to take advice from.

- Check with people you trust for a recommended insurance agent.
- Request for the agent to do a full financial analysis for you to know your shortfalls.
- Know what SAF and your parents (if they bought anny for you) currently provide you in term of coverage both Life and Hospitalisation.
- Consider SAF insurance if you are looking for affordable term insurance.
- Work out a budget that you are comfortable to put aside for the insurance premiums even after your NS (especially during period without income if you intent to further your studies).

For your consideration.

 

[BBCWatcher]

To a NSF, yes maybe he does not have a need yet, but what makes you think his parents are not his dependent?

And what makes you think they are? You didn't even bother to ask; you assumed. Not cool.

- Life Insurance can help to pay off debts if the life assured has got any.

I think in sg, debt is not passed down to your family, unless you are joint house owner (mortgage) or joint loan account or joint-whatever. Whatever debt you have left over will be recovered from what $$$ or properties that you have left over. If your debt is more than what you have, I don't think it will be passed down to your family. Creditors will have to swallow it

Justwakeup is correct.

 

[Shion]

Do you have any existing insurance with that company ?

Anyway, a savings plan is not a necessity. You are locking your money for a long time but gain not much from it.

 

[henrylbh]

Hi guys, I am currently in NS and on the no call list. Recently this Insurance Agent called me to tell me I have a “session” with him, to talk about some savings plan. 3 questions, how on earth did he get my number (never talked to any Insurance Agent before), should I go listen to his sales pitch and what insurance should I consider buying?

Insurance as saving plan? Don't waste time unless the insurer can guarantee a yield that you are comfortable with.

 

[justwakeup]

Insurance as saving plan? Don't waste time unless the insurer can guarantee a yield that you are comfortable with.

Really dont see a point in buying savings plan. Put money into high interest savings account probably will earn more

 

[moejoseph]

And what makes you think they are? You didn't even bother to ask; you assumed. Not cool.

My original post mentioned on the basics as TS asked. Of course when FAs do their Need Analysis, this is required of them to ask, i don't see it necessary to post it out here and assume that everyone don't need a life plan, or not seeing their parents as their dependants.

Justwakeup is correct.

Yes Bro Justwakeup is right, but there are things to take note still.

A Grant of Probate can still be applied by creditors, to get back whatever they can from the deceased's estate. So if there is a car or valuables, highly likely they will be sold by the court to pay off the debt. Only when the estate is insufficient, then the debt will be written off. An advice is to set up a Will to protect one's estate as well.

And if there are illegal loans or loans from friends/families, they may still pursue the debt as well. Best advice will be to not touch these loans at all.

 

[BBCWatcher]

My original post mentioned on the basics as TS asked. Of course when FAs do their Need Analysis, this is required of them to ask, i don't see it necessary to post it out here and assume that everyone don't need a life plan, or not seeing their parents as their dependants.

This is exactly backwards. Please don’t waste anybody’s time trying to pitch products they most probably don’t need, here or elsewhere. Most people “currently in NS” don’t need any (additional) life insurance.

Still not cool.

Yes Bro Justwakeup is right, but there are things to take note still.

Justwakeup is correct, and no, not really. Most people “currently in NS” don’t have significant estates also with significant debts, and with one or more dependents, and with needs related to his estate that are greater than the Core Scheme. (If, if, if, and if, if you’re keeping count.)

If you want to explain minority situations, explain them accurately and with appropriate context. In other words, take off your salesperson shirt or hat, please. That’s the last point of view we need around here. It’s practically impossible to step out of your home in Singapore and not hear the insurance salesperson’s point of view, over and over and over. That’s too much already.

 

[foxer77]

self control is a must in order to save up.


U can try SSD or FD with a start since now Federal rate r going bull interest rate in most bank are pretty high unlike last few year.

 

[moejoseph]

This is exactly backwards. Please don’t waste anybody’s time trying to pitch products they most probably don’t need, here or elsewhere. Most people “currently in NS” don’t need any (additional) life insurance.

Still not cool.


Justwakeup is correct, and no, not really. Most people “currently in NS” don’t have significant estates also with significant debts, and with one or more dependents, and with needs related to his estate that are greater than the Core Scheme. (If, if, if, and if, if you’re keeping count.)

If you want to explain minority situations, explain them accurately and with appropriate context. In other words, take off your salesperson shirt or hat, please. That’s the last point of view we need around here. It’s practically impossible to step out of your home in Singapore and not hear the insurance salesperson’s point of view, over and over and over. That’s too much already.

Not gonna argue with you any further. Tried that in a few threads, other people as well, and results are not going anywhere.

Am providing my advices out here, as per the basic steps to look into, and looking at every situations possible. Any special cases are on top which individuals themselves must assess according to their own needs and situations

Not cool for someone whom i see with much experience, to not be open to listening to others' viewpoints as well. And assuming all singles/NS people do not need life insurance or have any dependants.

 

[YKOHYL]

I suppose different people have different view points. There's no right or wrong.

I know people are saying to buy term and invest...but not many people are good in investment and investment don't necessary means gains. We might ended up in a loss position as we will never know when the market will crash.

For myself, I have 2x whole life (both will pay finish when I reach age 50 and have breakeven already) and term insurance. In fact, I bought a whole life insurance of $200k for my boy too recently, payable in 15 yrs. In total I only pay less than $20k for him and it still accumulate bonus. This will be my gift to him.

 

[tangent314]

I know people are saying to buy term and invest...but not many people are good in investment and investment don't necessary means gains. We might ended up in a loss position as we will never know when the market will crash.

The beauty about DCA and investing in diversified ETFs is that you don't have to be 'good at investment' or worry about 'when the market will crash'. You simply get above average performance at a low cost.

 

[BBCWatcher]

Any special cases are on top which individuals themselves must assess according to their own needs and situations

Special cases? Special cases?!?!?

I'm sick and tired of all the sales b.s. MOST -- I'll repeat -- M-O-S-T people "currently in NS" don't have dependents! (And all of them already have $150,000 of free life insurance.) This isn't some exotic, esoteric consideration, and how dare you suggest otherwise. It's a basic, fundamental life insurance question -- question #1 -- that a reasonable, intelligent person with any hint of fiduciary responsibility would ask, up front.

And assuming all singles/NS people do not need life insurance or have any dependants.

And now you're claiming I wrote something I didn't. How utterly disgusting.

 

[Lewis.T]

The beauty about DCA and investing in diversified ETFs is that you don't have to be 'good at investment' or worry about 'when the market will crash'. You simply get above average performance at a low cost.

You are over simplifying it and it isn't a good idea to.

Do I get average performance yearly? Over 2 years? If I buy on a bad year do I get average performance the next? How about in the next 5 years?

However, I agree with you that investing in certain ETFs and indices is good and should be done for the long term as you would more than likely come out on top, but I wouldn't go with such a general statement that might mislead the less financially inclined.

 

[Lewis.T]

And what makes you think they are? You didn't even bother to ask; you assumed. Not cool.




Justwakeup is correct.

Sadly this happens on both sides, right here in this forum, where people do not get full details of another person's policy before asking them to surrender because insurance policies are 'bad' etc.

I've noticed Tangent does try to get information and recalculate how much ROI they need to have from a new investment if they were to liquidate an existing endowment policy. Previously this forum would just advise you to 'cut losses' and surrender your policy without asking for details, so good job there.