Insurance plans

[bliss_ang]

Dear all,

I am thinking of getting an insurance plan for myself, but with so many insurance companies out there, I really do not know which is good. Some companies offer those with yearly cashbacks, are they good?

Can you all give me some recommendations, perhaps based on your experience or your friend's experience?

Thanks so much!

Have a wonderful week ahead!

[brainspoil]

hello! is it your first insurance plan or have u already had one? the first foundation of financial planning is coverage ie, life insurance. For life insurance, premiums get higher with age so it's always good to start young. There are lots of things to consider like: how's your family financial situation, e.g. if something *** happen to me, wd my family be able to afford it?

[bliss_ang]

Hi,

Thanks for the reply.

Ya, this is my first insurance, I am still schooling, in my final year at university.

Any recommendations?

Thanks!

[brainspoil]

okie, then act im a bit younger than you! Personally i have quite a few plans, 1 investment-linked policy(ILP), one life, and one endowment. You need to first ask yourself what is the amt u'd be comfortable in forking out. Endowment plans are good in e sense that they give u lots of money when u mature, but the premiums are... SUPER high.
Life insurance as i said is a very basic plan that every one should have since it covers death and total permanent disability(TPD). As for ILP, they're good when u're young bec they can act as a life insurance policy and as an investment one, but as you get older, around 40 plus, the ILP will not be as good.

Really, there are alot of plans out in the market so u can just call an agent to get quotations, but don't make any promises to any agent. try to look around and compare their good and bad points.
HTHs!

[bliss_ang]

icic, thanks for your advice brainspoil! Will keep a lookout!

[bliss_ang]

Hi,

Calift, thanks for your advice. since i have not graduated, don't think i am able to pay a premium of $200.

But you have offered me good advice!

Appreciate it!

[VinLongo]

if u are having yr 1st policy, i wont advise taking up an investment plan. one will just need another 911 or whatever 10 or 20 yrs down the road and u will see the investment policy making yr wallet bleed. I feel that investment plan is for those with extra cash and additional investments to take the risk involved. Even though the risk is so called minimum with the unit trust involved, its still playing with fire. Most often, investment policy r offered by agents as they allow them to earn more commissions.

Also, dont be too focused on those 'free gifts' offered by some co. look at the guarantee and non-guarantee amt. Its best to find a co. with a higher amt on guarantee to at least protect yr initial capital on the policy. Also, some plans which offer cash withdrawals for every 3 yrs etc might turn up to be more 'expensive' on the premium issue.

Some agents might offer policies like u dont need to pay after 20yrs etc. However, pls check carefully to see if there's hidden things which the agents fail to inform u. ie, the policy might be taking small amt of the $ in the policy ITSELF and at a certain INTEREST RATE to get the policy going. I have a similar policy liked this but the $ to keep on policy going was taken from the policy itself. its just that the co earned much lesser from my policy and i still get attractive returns.

Also, try to avoid getting policy less than $100 premium (monthly). such policy tends to be very expensive as the returns r much lower. so instead of having 2x$100 policy, get a $200 policy is better. Since u r still schooling, i suggest u to take a policy which is >$100 and then when u start wking, take another one of a different type at a higher premium amt. The reason why u take one > $100 when u r still young is that u pay lower premium for the returns u r getting.

Lastly, i feel that u shld check around various insurance co. to get an idea of the things they get to offer. However, i'm not interested in OUB lady's policy because of a bad experience with one of their agent. its like 'threatening and curse u' when i rejected his offer. Ask someone u know to recommend their agents to u. I also recommend 2 of the agents i know to my friends. Most impt is that the agent must not be pushy. HTHS!

[bliss_ang]

Thanks Vinlongo!

Guess I would be meeting up with a financial planner this week to discuss how I should go about it.

frankly, paying a premium of more than $100 per month is a bit hard for me, that is like 1/3 of my pocket money, and I am only graduating in December, but I will try work my finances out if that is really the way.

Thanks once again!

[trailblazer]

Hi bliss_ang,

Just felt the need to share some info on this thread. You had asked this question at a very good time.

Vinlogo, I believe you are talking about 'critical' year policies where future premiums can be waived, depending on the current performance of your insurance fund. Such policies are no longer sold. Sorry to hear of your experience with Manulife agents.

In general, try not to buy an investment-linked policy for your first plan. They work in complex ways that you may not understand. Do you know that your insurance charges varies according to your age? It's so complex I do not wish to explain also.

Bliss_Ang, most insurance plans that cover the 30 major illnesses work on a non-guaranteed premiums since July 2003. This means that insurers can ask u to pay more for plans bought after July 2003 by giving you 30-45 days of advance notice. This is highly unfair for consumers.

There are many reasons for this change. Firstly, the premiums you pay are based on insurer's projections. There is a worry amongst insurers that their projections might be too low. So, in order to protect their finances, they had moved onto a non-guaranteed premium basis. So in the event that they had priced their premiums too cheaply, they can correct their mistake by asking you to pay more.

Secondly, due to the aging population, insurers foresee a lot of claims over the next few decades. This worsens their fear of under-charging you for your plans. This is another reason why your 30 major illness policy work on a non-guaranteed premium basis.

Thirdly, claims for major illnesses are being paid out earlier than insurer's projections. Cancers are being detected earlier. Let me give you an example. Insurers may feel that the average age of a cancer claim is 70. If the average age of a cancer claim is 65, this means that insurers would have collected 5 years on premiums lesser as a whole. This would have been quite disasterous for them. That's another reason why your major illness policy's premium is non-guaranteed.

Bliss_Ang, there is only 1 company still offering guaranteed premium plans for the 30 major illnesses. It's Aviva and they will be removing this guaranteed premium feature on the 26th August 2004. I feel that guaranteed premium plans, if anything, gives certainty that your insurance premiums will not increase along with inflation.

Hope it clarifies.

[bliss_ang]

Hi Trailblazer,

Thanks for the information

I spoke to a financial advisor last week, and she also recommended Aviva for the same reason - guaranteed premiums. However, due to my personal unpleasant experience and my friend's bad experience with them, I did not wish to rush into signing a policy under them just because they are pulling out of this policy soon.

But like you mentioned, it is better if I can safeguard my own interest. Will definitely reconsider my decision as soon as possible, if not there will not be any company left that has this scheme anymore.

Thanks once again!

[trailblazer]

Hi bliss_ang

It's been my pleasure. Bliss, as i was reading through the thread, you mentioned a premium of $100 is about 1/3 of your monthly pocket money and that you will only be graduating in December.

I suggest you relook your decision to start an insurance program now. You really wish to start a plan now, only to start worrying about how to afford the premiums in future. If the policy lapses over the next few months, you will not get a single cent back.

Since you will be graduating in December, perhaps it will be more prudent to start a permanent plan after you had secured a job.

Are you in a rush to get yourself some cover?

[bliss_ang]

Hi Trailblazer,

For the Aviva one I am considering, I was actually thinking of around $50 to $80 per month.. I was thinking of getting it earlier because the later I get it the more expensive it will get you see. And I have wanting to get insurance since like one year ago or something, just that I keep procastinating.

Also, I thought since my premium is quite low, I can draw into my savings if the need arises you see

Thanks for your response once again!

[Mylar]

Hi girls, need some help here. Im currently having only one whole life policy and im thinking of getting another one which covers medical bills or hospitalisation charges if any in the future.

I received a mailer from AIG promising to cover me 20k(for non-female critical illness) or 60k (for female related critical illness) at $13.48 per month. Does this sound okay?

I'm not sure if i should opt out from my medishield to either income shield offered by NTUC income or another health shield plan offer by AIA. Any cotters here has opted into any of the above plan? Is there a catch somewhere cos i heard that the perks from these insurance companies are definitely better than cpf.

I just want a simple, no frills health policy so would appreciate if any cotters can suggest any plans which i could sign up with.

TIA

[VinLongo]

bliss_ang , you are most welcome. just ask several agents to check out the deals. This is a long term commitment and do it when u are ready, financially.

caer, i heard that NTUC policy is good for what u r looking for. Maybe i check out with my agent (hehe she's GE) and get back when i know the answer. Sometimes she asked my mum to put prudential fixed deposit with guarante amt as its much better than what GE offers. I like this type of agent!!!

[trailblazer]

Hi Caer,

Just to let you know, AIG and AIA is slightly different. How old are you Caer? The premiums seem a bit cheap.

AIG's hospitalisation plans are the SG100 and SG400. They fall under the general insurance category and do not guarantee you can renew the plan upon a claim.

AIA's hospitalisation plan should be called 'Pink of Health', should be guaranteed renewable upon any initial claims.

As for Medishield plans, private insurers definitely offer a better option. Caer, GO FOR NTUC INCOMESHIELD. The rationale is simple. NTUC Incomeshield covers you till age 100, the other insurers cover you till age 80 only. The average life expectancy of a female is already 80 years in Singapore.

Hi Vinlogo,

NTUC Income only has a whole life plan called 'Living Policy'. It's payable till age 85. The trend these days is to get a limited payment plan where you pay for 12, 15, 20, 25 years or till age 65 and be covered till age 100.

I'm not saying NTUC's whole life is bad but if you were to retire at age 65, paying another 20 years of premiums can be quite a strain.

Besides Aviva, all the other insurers work on a non-guaranteed premium basis. So if you were to pay another 20 years of non-guaranteed premiums after your retirement, a lot of people will rather take a limited payment plan.

Hope it helps...