Personal Insurance matters

[C_wern]

haha imo, life insurance should be gotten as soon as possible. y u still wanna wait another 5 MORE years? the longer u WAIT the more expensive it becomes for the same amount of benefits i.e sum assured. u r 25 years old and if u get the 25yrs ltd pay, u'll finish it by 50. if u wait another five years it'll mean u finish it at 55 yrs old.

thank u :)

[Soho]

haha imo, life insurance should be gotten as soon as possible. y u still wanna wait another 5 MORE years? the longer u WAIT the more expensive it becomes for the same amount of benefits i.e sum assured. u r 25 years old and if u get the 25yrs ltd pay, u'll finish it by 50. if u wait another five years it'll mean u finish it at 55 yrs old.

thank u :)

 

hmmm i understand wat u mean.. tats one of my concern... haha but i am just wondering by the age of 70, which is like 45 yrs time, 125k might be like not alot...

 

also i am thinking if i really do need it not.. till now i haven heard of stories ( from frens or relative , except from insurance agents who paint beautiful pic) of ppl claiming insurance payouts of wat easily and stuff... most ppl claim only claim a small portion of it...

 

but there are tons of ppl cancelling their policy and stuff..

 

i am just concern.. coz once i start this plan, its no return .... if i cancel it in the 1st 2 yrs, my cash value will be $0. 3rd yr only 1k...so the upfront fee looks high...

[Zangetsu77]

Hi guys, would just like an opinion on how do you guys insure yourself.

 

Pre-existing insurance that i have

=========================

Life insurance + Critical Illness $200k

Aviva-SAF term accidental death $100k

NTUC Enhanced Incomeshield (ie medishield hospitalisation plan)

DPS for CPF

 

I'm getting married this year. Parents both retired. 30 yrs old.

My Annual income will be above 100k/yr.

 

In view of the increased responsibilities of ensuring my wife and my parents are cared for if something happpens to me

 

So i'm thinking of increasing my Aviva-SAF insurance beyond the $100k and getting the Critical Illness rider for the SAF one as well (maximum is 300k at $360/yr)

Aviva SAF insurance

 

Aviva-SAF is term insurance, agents won't earn any commission and hence their advice will likely be garbage as well.

 

Is there a recommended level of insurance based on your annual income?

How do you guys do it?

 

Go for a big living policy like S$1m pay-out for critical illnesses etc. At your age, you can achieve 5x leverage i.e. total lump sum premium of S$200K. There's still a maturity value which typically under-performs shrewd individual investment returns (coz insurer needs to pay the usual fat bonuses etc. etc.) S$200K may be a steep lump now if it's 2x your annual income, but banks do finance such policies over 10 to 15 years (with interest of course), so cash-flow wise it's manageable. Then when you are due for your second career, the policy would have been paid up.

 

You can either approach an insurance agent or a privilege/private banker for such policies.

 

 

[Stanong11]

My opinion is, just treat insurance as.. insurance. Don't consider whole life or ILP whole life. It's not that you'll lose big time, actually you doesn't. You'll lose your $ only if you surrender before maturity. The losing part to me is you probably can make much more with money parked in other places. One famous but not many people thought of is your CPF special account. I'm serious. 4% might not seems to be a lot to many, but trust me, it's one of the best place for risk adverse people.

 

And the disadvantage of \whole life and ILPs wholelife or Limited payment wholelife or any name that got to do with whole life policies is the effects of deduction.

 

ILPs are different from ILP whole life. A lot of people are confused between these two, but most of the time I presume, they are misled by financial representatives. In a nut shell, buying a financial product especially insurance doesn't neccessarily means you'll lose big time, A lot of people lose money it's because you buy without doing your own financial analysis. And enter into a contract without doing enough home work.

 

I mentioned before, get term. Lesser effects of deduction, distribution cost etc. And straight forward. Don't go think of getting money back. Don't forget, you are BUYING insurance. Just treat it as money well spent for a peace of mind. Really, there are easier ways and better options for investments.

 

And also don't forget, check if you have group insurance in your company. Normally that should be your first choice to claim.

Edited April 6, 2011 by Stanong11

[Chucky2007]

I'm a sucker for coverage. Paying around 600 per month for a combination of term and whole life policies. Covers about 1.5m for death & 400k for major illnesses at least for the next 15 years. The mixture ensures that if I'm lucky to stay healthy until old age then all premiums paid will be refund from the cash value of the whole life policies. I paid about $ 460 into wholelife & limited wholelife plans, $ 200 goes into term insurance

[Chucky2007]

I think there is no need for extreme measures. It depends on individual budget & comfort level on how much individual wants tio provide for loved ones if death strike. also take into account for your loved ones how much they can cope financially if i m not around

 

[Chucky2007]

For my case, my parents would be well taken care of by my 3

brothers as they are all very filial, so if i pass on, 200k of my coverage will be my contribution token to them. My small house will be going towards my wife n it generates around 3k of rental income for her n another lump sum of 1m+ from insurance proceeds for her to ensure she can use it to invest or use for my son's education in future

[Chucky2007]

To cut story short, i believe in providing a leverage on what i currently dun have but will have in future. Meaning, if i dun have a million spare cash, but comfortable paying less than 700 per month to get the coverage,n if 30year down the road i will get back this 700monthly that i paid even without interest, i'll do it. However if i pay $300/month n get 3mil of coverage n woulnt get back single cent back 30years later (cannot determine if i will die within this 30year period right? ), i will not do it. Or if pay $1400 for 1m coverage n 30yr later get back principal+ interest, i also will not buy it as i m not comfortable at paying so much into insurance on monthly basis Currently. Just strike a balance between your own comfort range

Edited April 8, 2011 by Chucky2007

[Chemmie78]

What is the aim of insurance, it is to replace the loss of income in the event of death tpd or critical illness, or to ensure even money for H & S....just calculate the potential loss of income that your dependents need and that's how much you should cover yourself for

[Sgspurs]

Am also looking at the Aviva SAF insurance for Critical illness. Compared to other term insurance, the premiums u need to pay goes up every year after age of 45.

 

At the end of the day, it is not much different from others. It's normal Death and TPD are cheaper than others though.

 

[Fooblack]

Am also looking at the Aviva SAF insurance for Critical illness. Compared to other term insurance, the premiums u need to pay goes up every year after age of 45.

 

At the end of the day, it is not much different from others. It's normal Death and TPD are cheaper than others though.

 

my take is that dun over-insure for CI because there are many qualifying conditions before a claim can be activitated. by then, you should be almost very nearly up the lorry liao (hypothentically). Furthermore, the loading on the premiums is pretty high once > 45yrs.

 

insurance for death and TPD should be weighted higher since it is confirmed loss.

 

that's why i only took 100k for CI of SAF-Aviva Group Insurance. My life policy covers another 0.25m for CI. Looks sufficient to me.

[Fooblack]

Hi, i have recently received the offer from SAF Aviva to increase the coverage of $1m. I am currently insured by them at $600k.

 

I am inclined to take it up. For cover for death and TPD only, the annual premium will increase to $1,536. I doubt that there is any other cheaper premiums in the market... the draw for this $1m coverage is no stringent underwriting or medical examination required.

 

Overall, my insurance coverage will be as follows:-

 

1. Term insurance (Death, TPD) - $1m

2. Term insurance (Critical illness) - $100k

3. Whole life policy (Death, TPD, CI) - $200k

4. Mortgage insurance - $300k (o/s loan - $400k)

5. Personal accident - $100k

6. Disability income (payout approx $4.5k/mth if I can't work in my usual vocation)

 

Not sure if the above picture looks like over-insured. I am around 35 yr old, sole breadwinner for a family with 2 kids. Annual income > $100k/yr.

 

any comments?

[Timex1441]

Hi, i have recently received the offer from SAF Aviva to increase the coverage of $1m. I am currently insured by them at $600k.

 

I am inclined to take it up. For cover for death and TPD only, the annual premium will increase to $1,536. I doubt that there is any other cheaper premiums in the market... the draw for this $1m coverage is no stringent underwriting or medical examination required.

 

Overall, my insurance coverage will be as follows:-

 

1. Term insurance (Death, TPD) - $1m

2. Term insurance (Critical illness) - $100k

3. Whole life policy (Death, TPD, CI) - $200k

4. Mortgage insurance - $300k (o/s loan - $400k)

5. Personal accident - $100k

6. Disability income (payout approx $4.5k/mth if I can't work in my usual vocation)

 

Not sure if the above picture looks like over-insured. I am around 35 yr old, sole breadwinner for a family with 2 kids. Annual income > $100k/yr.

 

any comments?

 

have u checked out SAFRA-NTUC term insurance? (they have a max of $300K coverage which might work out for ur case since u already have SAF-AVIVA of $600K)

[Fooblack]

have u checked out SAFRA-NTUC term insurance? (they have a max of $300K coverage which might work out for ur case since u already have SAF-AVIVA of $600K)

 

hmm.. that one needs to be Safra member. also the premiums are age-banded... so they increase with age... think only cheap in the earlier years..

[Vextan]

Hi, i have recently received the offer from SAF Aviva to increase the coverage of $1m. I am currently insured by them at $600k.

 

I am inclined to take it up. For cover for death and TPD only, the annual premium will increase to $1,536. I doubt that there is any other cheaper premiums in the market... the draw for this $1m coverage is no stringent underwriting or medical examination required.

 

Overall, my insurance coverage will be as follows:-

 

1. Term insurance (Death, TPD) - $1m

2. Term insurance (Critical illness) - $100k

3. Whole life policy (Death, TPD, CI) - $200k

4. Mortgage insurance - $300k (o/s loan - $400k)

5. Personal accident - $100k

6. Disability income (payout approx $4.5k/mth if I can't work in my usual vocation)

 

Not sure if the above picture looks like over-insured. I am around 35 yr old, sole breadwinner for a family with 2 kids. Annual income > $100k/yr.

 

any comments?

Ah Foo, if you want I can introduce you one insurance agent whom i highly-regard him for professionalism and integrity. Ai mai ?

[Fooblack]

Ah Foo, if you want I can introduce you one insurance agent whom i highly-regard him for professionalism and integrity. Ai mai ?

 

haha.. thanks fren. I already have a planner myself. this is just to get more feedbacks.. hopefully more subjective and independent ones haha..

[Hondaes8]

If you can afford, look for a good H&S plan (Shield plans limits and their sub-limits can be busted ) and a disability insurance plan that you can afford.

 

I am on Aviva for both bec they offered a better product then, things could have changed so look around. Can go through IFA channel if you do not want to be restricted.

 

For DI, when I was hunting for one, only GE and Aviva had them. This is a low comm product so not many agents will" push" this or it is simply just not mentioned as it's not offered by their own firms.

 

Why DI?

 

To plug the gaps where you are not disabled/ sick enough to trigger your TI/ 30 illness cover but are ill enough that you cannot work or have to scale down your work.

 

AIA also have DI. Just launched 2 months ago. coverage is better thatn GE and Aviva.

[Tjkbeluga]

Those who has precondition can try out Tokio Marines.

 

I had a history of gout and some protein leak. Recently, I went through IPP agent to apply through NTUC, Aviva, Tokio Marines and another I forgot the name. NTUC outright rejected me. Aviva accepted with most of the stuff excluded plus heavy loading. TM, accepted all me existing conditions with 30% loading. They have an interesting plan where up to the age of 70, all coverage amount is tripled. So, I think it's worth giving a smaller insurer a try. Big ones are too fat and complacent in my opinion....