Savings plan (insurance)

[BBCWatcher]

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 haven't seen many such cases lately. Surrender-related decisions are frequently not easy ones, and they certainly require gathering lots of facts and careful analysis. It's also often possible to sell policies to other parties rather than surrender them to the original insurance company, and that's another interesting part of the analysis.

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.

Yes, agreed, and much appreciated.

 

[moejoseph]

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

Right Bro, u win because you have been in the forums for long and are so exerience. But the idea from your comments, not just from this thread alone, give me the idea that this is so.

Peace out for now.
Wouldn't want people to think that an old bird is bullying a newbie with his "correct" ideas

 

[tangent314]

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?

Yes.

That's kind of the point of the index being the weighted average market capitalization.

 

[KinoChoco]

Just curious, if we’re looking at limited pay life plan, wouldn’t it be better if you purchase as early as possible as the premium is cheaper when you’re younger?

 

[Lewis.T]

Yes.

That's kind of the point of the index being the weighted average market capitalization.

I need to stop you right here. Investments aren't for everybody, especially when you do not tell the downsides of it but instead mention simply that

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 cannot predict it but you do need to worry when the market will crash, especially when the funds will be used for certain financial milestones in life such as buying a house. You're telling me if you're buying a house in the next 5 years and working towards saving for the downpayment and renovations (as an example) you'd recommend putting it in ETFs?

Generally, the longer the time horizon the more favourable the outlook.

Also, what if the average performance for the time period I'm vested is in the negatives? Yeah.. it's still the average but it's not a good outcome. Are there better solutions for the above example? SSB is one for example. Short maturity endowments are another.

More information is always required when you want to recommend someone to invest in something, or get a policy, or to throw it in a safe, capital guaranteed place. You're not doing anyone a favour by oversimplifying investing.

It's the same for insurance policies, as an example, we have to mention the guaranteed and non-guaranteed portions, along with the risk having all of your premiums being lost if you surrender the policy early.

 

[Lewis.T]

Just curious, if we’re looking at limited pay life plan, wouldn’t it be better if you purchase as early as possible as the premium is cheaper when you’re younger?

Most of the times the answer would be yes, but mortality premiums may decrease or a company may have a big promotion etc, but nothing that should really stop you getting it asap if your intention is to get a limited pay life plan.

 

[justwakeup]

Any good plans to recommend as example? Discussions without any example dont seem to go anywhere

 

[hwmook]

Most of the times the answer would be yes, but mortality premiums may decrease or a company may have a big promotion etc, but nothing that should really stop you getting it asap if your intention is to get a limited pay life plan.

Hello, insurance agent.

 

[Aaron_soh80]

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?

Better buy. In case up lorry during training

 

[moejoseph]

Any good plans to recommend as example? Discussions without any example dont seem to go anywhere

No plan is the best i would say, as every insurer has got their own edge over the others. It really boils down to what an individual is looking for.

Some may be looking at the cheapest, some looking for multi-pay, some looking for extra 50% payout etc..

 

[justwakeup]

No plan is the best i would say, as every insurer has got their own edge over the others. It really boils down to what an individual is looking for.

Some may be looking at the cheapest, some looking for multi-pay, some looking for extra 50% payout etc..

No one is asking for the so-called best plan, so far i see talk only. Are the plans in the market really so bad that no one can recommend at least some half decent plans?

Or should i expect very generic answers like “every person got different need”?

 

[tangent314]

Just curious, if we’re looking at limited pay life plan, wouldn’t it be better if you purchase as early as possible as the premium is cheaper when you’re younger?

It's not so simple.

The premium does look cheaper when you start a term or whole life plan when you are younger, but it's may actually more expensive when you take into account Time Value of Money.

For example a 10 year PruLife Ltd Pay for a 30 year old is ~$3075/year and for a 25 year old is ~$2666/year. If we assume a 3% interest rate, this is equivalent of a $23420 single premium for a 25 year old. If a 25 year old decides to wait 5 years before starting the PruLife Ltd Pay for 10 years at the higher rate, it is actually equivalent of a single premium of $23300 paid now.

 

[Wishdom]

I have 1m life insurance. No spouse no kids, but I'm my parents' retirement plan.

I'm gonna agree to disagree with BBC's point on medical coverage. People do get injured during NS. While we are covered for during NS, we might be subjected to exclusions or premium loading when we purchase new hospitalisation plans after NS. I think it's worth shelfing 2 years of premiums for future's sake.

Sent from Ilovennp using GAGT

 

[Prof. Utonium]

Avoid saving plans.

Get a term instead like some recommended here. Your parents are your dependants. Unless they are rich and could take care of themselves without additional help when old.

Frankly, most Singaporans don't really have adequate retirement fund.

 

[KinoChoco]

I have 1m life insurance. No spouse no kids, but I'm my parents' retirement plan.

I'm gonna agree to disagree with BBC's point on medical coverage. People do get injured during NS. While we are covered for during NS, we might be subjected to exclusions or premium loading when we purchase new hospitalisation plans after NS. I think it's worth shelfing 2 years of premiums for future's sake.

Sent from Ilovennp using GAGT

He didn’t disagree on hospital plans, only life plans.

It could be because life plans are hard to get exclusion (?).
I’ve severe slipped disc, footdrop and had 3 surgeries and with an existing perm condition (not fully recovered), nobody loads me nor exclude me for any life insurances tho.

 

[exterminazn]

He didn’t disagree on hospital plans, only life plans.

It could be because life plans are hard to get exclusion (?).
I’ve severe slipped disc, footdrop and had 3 surgeries and with an existing perm condition (not fully recovered), nobody loads me nor exclude me for any life insurances tho.

U sure your agent declare all your conditions? Slip disc sure kena loading or if not total exclusion leh.... don’t csb pls

 

[KinoChoco]

U sure your agent declare all your conditions? Slip disc sure kena loading or if not total exclusion leh.... don’t csb pls

Lol bro, I declared everything. Totally fine. Lie for what, I’m not even an agent . They didn’t even send me for medical review.

 

[Wishdom]

He didn’t disagree on hospital plans, only life plans.

It could be because life plans are hard to get exclusion (?).
I’ve severe slipped disc, footdrop and had 3 surgeries and with an existing perm condition (not fully recovered), nobody loads me nor exclude me for any life insurances tho.

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.")

I think that was a contest on medical coverage.

Sent from Ilovennp using GAGT

 

[xtwis7]

Either your agent must be super good at concealing facts or your story-telling is awesome.

Anyway your words so true or not doesn’t matter if this humours you.

Lol bro, I declared everything. Totally fine. Lie for what, I’m not even an agent . They didn’t even send me for medical review.

 

[KinoChoco]

Either your agent must be super good at concealing facts or your story-telling is awesome.

Anyway your words so true or not doesn’t matter if this humours you.

Bro, u wanna contact me directly and make a bet? 10k? 100k? I can show u all the black and white paperwork with full declaration. Feel free to pm me your number, I can call you to further discuss if you’re so doubtful

Don’t be so narrow minded and think everyone is the same, there are lucky ones who managed to get off without exclusion or front load.