Bto vs private condo

[Stepspro]

 

That's the message I got too.

 

Not to over extend and better to take the BTO

 

and to be debt free sooner.

 

I also fully agree on term and accident insurance

 

and not to go for the investment linked life policies

 

unless people have a lot of money to burn.

 

Investment linked policies were very popular pre-Lehman crisis. Because fat commission to the agents and all the bloated return.

 

Post-Lehman... we all woke up from all the lies.

 

So, back to basic term and accident insurance.

[Bacteria83]

 

The illustration said to pay for 18 years and I get covered till age 59.

 

They projected a 6% return/div each year and if that was achieved, then the illustration would have been achievable. 6% return was possible in the late 80s but then came the 90s with one problem after the other ranging from Thai Baht crisis to Ringgit controls, recession, interest rate cuts etc so it never became a reality.

 

AIA told me on year 18 then I could stop paying and they would use whatever return/div that was already accumulated to pay for a few years premium but it would definitely not last till I'm 59.

Quick calculation shows that it would be wiser long term to continue paying despite the obvious grievance from me, so I did so and am still doing this today partly also cos I don't have much insurance so have to cling on to this.

 

As some posters have mentioned, on hindsight I should have just paid for those term insurance which would have covered me with much lower premium.

Bro you are bit unlucky, due to the subprime financial crisis which hit AIG hard, alot of AIA policy is affected. They cant earn enought to honour their promise, think i saw a article from strait times back then. Luckyily Those who brought from GE and Prudential did not face these issue.

 

we will never know what will happened, AIG was really huge way bigger than GE and Pru but they were down to their knees during that time.

[Kangadrool]

In crude local language, it means

 

If your backside is not so big, don't sit on a big chair.

 

 

That's the message I got too.

 

Not to over extend and better to take the BTO

 

and to be debt free sooner.

 

I also fully agree on term and accident insurance

 

and not to go for the investment linked life policies

 

unless people have a lot of money to burn.

 

 

[Mustank]

In crude local language, it means

 

If your backside is not so big, don't sit on a big chair.

 

 

[Darryn]

 

The illustration said to pay for 18 years and I get covered till age 59.

 

They projected a 6% return/div each year and if that was achieved, then the illustration would have been achievable. 6% return was possible in the late 80s but then came the 90s with one problem after the other ranging from Thai Baht crisis to Ringgit controls, recession, interest rate cuts etc so it never became a reality.

 

AIA told me on year 18 then I could stop paying and they would use whatever return/div that was already accumulated to pay for a few years premium but it would definitely not last till I'm 59.

Quick calculation shows that it would be wiser long term to continue paying despite the obvious grievance from me, so I did so and am still doing this today partly also cos I don't have much insurance so have to cling on to this.

 

As some posters have mentioned, on hindsight I should have just paid for those term insurance which would have covered me with much lower premium.

I don't believe in investment linked for life assurance (that type that gets paid when you die).

 

I buy the straight forward life type, that is inflation linked....

[Kangadrool]

Unfortunately, most of us have to learn through the hard truth, school of hard bongs.

 

I don't believe in investment linked for life assurance (that type that gets paid when you die).

 

I buy the straight forward life type, that is inflation linked....

 

[Spring]

I don't believe in investment linked for life assurance (that type that gets paid when you die).

 

I buy the straight forward life type, that is inflation linked....

You are right and good for you!

 

Unfortunately in the 80s, there wasn't internet, sharing from others n my own naivety meant I didn't make the right choice so I hope with the transparency n info available these days, people would be able to discern better, cheers!!

[Jamesc]

Investment linked policies were very popular pre-Lehman crisis. Because fat commission to the agents and all the bloated return.

 

Post-Lehman... we all woke up from all the lies.

 

So, back to basic term and accident insurance.

 

Your posts are always very intelligent

 

and drive home the points very well.

 

Edited December 5, 2014 by Jamesc

[Darryn]

Just as an aside - has anyone seen a bank that offers an inflation linked life policy?

 

So far I haven't seen one here...

 

[Kangadrool]

our inflation always cooked down to be so low. How to sell? LOL...

 

Just as an aside - has anyone seen a bank that offers an inflation linked life policy?

 

So far I haven't seen one here...

 

 

[Soya]

Just as an aside - has anyone seen a bank that offers an inflation linked life policy?

 

So far I haven't seen one here...

 

 

 

in sg, COE still at $70,000 but ah gong say inflation has come down becoz cars are cheaper........

 

simi got inflation?

[Baal]

Very true, when my family was in distress, my aunt sold an investment linked life policy to me (via my mum) during the mid 90s. I would have very much rather its not tied to investments...

- it goes against the idea of security...

[Baal]

as compared to days when coe was high 80s - 90k ?

[Kxbc]

haiz... Key point is... 1996.

Signed option 3 weeks before govt announced cooling measure.

Consider to back off but will lose 5%.

All time low was about $200k. Can't remember which year.

But now, still can fetch $440k.

Good thing is DTL station is next to my lift lobby. Price will hold. Hopefully.

1996. no wonder.

 

i bought mid 1998. it was really the lowest point after the 1998 financial crisis. I didn't know that until after many years when i checked the charts.

 

Anyway, you have mrt so the $320k is quite worth it.

[ShepherdPie]

how come your units so pricey ah?

 

I bought 4NG (90 sq m) in Bishan GRC in 1998 for $240+k. 14 year old flat. but no nearby mrt lah. but still direct bus to orchard and cdb.

 

 

i bought new flat next to mrt - 3stop from raffles place .

@320k - 100sqm in 2006...

 

 

I think 240 is pricely.

[Kxbc]

 

i bought new flat next to mrt - 3stop from raffles place .

@320k - 100sqm in 2006...

 

 

I think 240 is pricely.

good for you then. i didn't have the luxury of getting a new flat as all selections then were at the Sengkang/Jurong West/Woodlands area which i was not interested in.

[ShepherdPie]

good for you then. i didn't have the luxury of getting a new flat as all selections then were at the Sengkang/Jurong West/Woodlands area which i was not interested in.

yeah... very lucky.. in any case.> 300 was expensive that time.. that's what i meant.

[ShepherdPie]

You are right and good for you!

 

Unfortunately in the 80s, there wasn't internet, sharing from others n my own naivety meant I didn't make the right choice so I hope with the transparency n info available these days, people would be able to discern better, cheers!!

 

 

Anyway, just for info.. next yr will be exciting year for insurers... because there MAS announce that ppl can directly buy insurance "skipped" the agent in the coming mths.

 

How it will pan out, not sure.. but i think insurance will be more affordable soon.. cos' from what i understand only 30-40% goes to the company that undertake the insurance payment. So skipping the middle-mEn.. will mean alot of $$ saved. BTW , e.g. if you by insurance from AIA , it not realy AIA that pays out.. they resell your insurance/risk to smaller companies that will take up the "gurantee", and then get resell , then resell... etc...That's how lehman dieded..

 

Edited December 5, 2014 by ShepherdPie