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  • Need some help on insurance

    Hi All,

    I need some advice. I am 31 yrs old and I am currently holding 3 life policies + 1 savings plans on top of my medical shield plan:

    1) NTUC Income - traditional life policy (pay till death), bought in 2001, $70 per mth, basic sum assured $50K (upon death or critical illness)

    2) Prudential - ILP, bought in 2006 , $120 per mth, basic sum assured $50K (upon death or critical illness)

    3) Manulife - traditional life policy (pay till death), bought in 2008, abt $120 per month, bought in 2008, basic sum assured $62.5K(but between now and 65 years - basic sum assured is increased by 1.6times to $150K) (upon death or critical illness)

    4) Manulife - 35 years Savings plan, bought in 2008, about $80 per mth, save till 60 years-old, get payout at age 65 years-old

    Recently one of my friend pointed out that the the time period for my savings plans is way too long + the 3 life plans were whole life tenure meaning "pay till die". It suddenly struck me that in the long run these 4 plans can become a big financial liability if 1) i continue to hold it in my old age (after my 50s) or 2) facing job crisis in the next 10 years (coz times are very uncertain, not sure if we are able to hold down a job in our 40s).

    Not sure if i should remain status quo or take action to adjust my portfolio. Hope to get some advice from neutral parties here rather than approaching insurance agent for review .

    Many thanks in advance!!

  • #2
    Hi, I cannot advise you on investment related issues but just to check if you have upgraded your medishield to a private integrated plan? This is very important. At the age of 31, I think it is still quite easy to buy a plan like this. It is good to upgrade especially if you are still working and able to pay the premium. The premium is not very expensive. You can buy a good one while you are working and you can always downgrade the plan next time. It is easy to downgrade than upgrade. Recently, I realised that basic medishield only covers up till 85 years old or to a certain amount (cannot remember the cap per life time). For private integrated plan (depends on which company) some cover the entire life time and you can add in rider to cover the co-pay. This plan is good because if a person is hospitalised, he/she does not need to worry about medical bill. Unlike those critical illness plan, the insurance company will only pay out if the person has the stated illness (usually a list of 30 of them). Hospital bill can be astronomical. Try to upgrade to "as charged" plan. If you are willing to pay a bit more, you can get "as charged" plan that covers private hospital bill as well. Many times, I stress the importance of having a good medishield plan. I did not realise this until I heard scary bill and experience from colleagues who have elderly relatives.

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    • #3
      hi Juliana,

      From what i see, you do have many plans that you need to pay till you die. Just wanna check with you whether all those plans include any rider that aloows you to stop payment and at the same time being protected in times when you have any financial difficulties? There are some riders that we can activate to meet these type of uncertainities.

      I feel that it will be better to speak to an advisor to seek advice as they are the professionals in such field. Maybe you can look for your previous agent that have served you before. It will be good to do another tiime of review so as to reiew your needs again. As at different stages of life we have different needs and worries.

      And like what Lemon tree have said, it is definitiely vital to upgrade your medishield plan as it will be deducted by your medisave acct. So no single cent need to be fork out as no other plans actually will help to cover your hospitialisation expenses up to 100%.
      Last edited by hwan_1986; 07-09-2011, 03:45 PM.

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      • #4
        Why do u buy so many life policies? I feel that it's not needed. U just need to get 1 life policy, 1 endowment plan and some useful riders (probably) to add on to your life policy.

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        • #5
          Why don't you try consulting an IFA (Independent Financial Advisor)?

          They sell most insurance products and can give you a more unbiased view.

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          • #6
            Originally posted by CharCharr View Post
            Why don't you try consulting an IFA (Independent Financial Advisor)?

            They sell most insurance products and can give you a more unbiased view.
            Not all IFAs are unbiased. The only unbiased ones are the ones who charge for consultation. If not, how do they get paid?

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            • #7
              Originally posted by elderflowertea View Post
              Why do u buy so many life policies? I feel that it's not needed. U just need to get 1 life policy, 1 endowment plan and some useful riders (probably) to add on to your life policy.
              I really have to disagree with you, unless your 1 policy gives you like $1mil payout. Considering inflation and your several dependants, and the countless unexpected scenarios in life.. It's always better to be safe than sorry right!

              As for Juliana, I agree 35 years is indeed really long!! But good news, it is only $80 a month. Actually it really base on how much you are earning, assuming you earn a good $5000 a month, go ahead and buy a few more policies please! Otherwise, not to worry. Just don't be entirely dependent on the policies to help you save money, you need to keep some liquid cash, also your ILP should be partially withdrawable after certain years.

              But.. how come pay till die for your life policies, how to sustain after your retirement!

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              • #8
                Maybe sharing mine can help you? I have 3 types all from AIA. Hospital, accident and death insurance is the most important on their chart that is why these interests me. This kind is also maturing then my salary is safe from any big bills in the hospital just if ever someing will happen to me. So this is for me a wise investment in a way bec. I am controlling myself from getting a lot of insurance since i know i cannot enjoy my money if i do so. Then I also have automatic savings every month deducted from my bank account for my own discipline. I am hoping more money and success in the future.

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                • #9
                  wow. That's a lot of policies you got there and till death?? I'm assuming you're safeguarding your family cuz the money will go to them and not you. Don't really know how I can say to help you adjust your portfolio. I've only got 1 life insurance policy with dbs and its sufficient..call up them up and speak to an insurance officer and see if they can help you 'cut' out the unecessary plans.

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                  • #10
                    Originally posted by Carrielicious View Post
                    wow. That's a lot of policies you got there and till death?? I'm assuming you're safeguarding your family cuz the money will go to them and not you. Don't really know how I can say to help you adjust your portfolio. I've only got 1 life insurance policy with dbs and its sufficient..call up them up and speak to an insurance officer and see if they can help you 'cut' out the unecessary plans.
                    1 Life Insurance ? I suggest you change your banker if he tells you that just 1 life insurance policy is enough. Life insurance basically covers only death or permanent disability in some cases. However you do realise you are missing out on essential coverages such as critical illness / hospitalisation. Think about it, which is more expensive, to hold a funeral or to pay for hospitalisation bills which can span more than a few months for critical illness, and dont forget long term treatments too.

                    For ladies do check up on Carcinoma-in-situ insurance to make sure you are well covered for cancer. Do not leave things to chance because when illnesses hits, they hit hard.

                    In my own opinion, an average adult should at least have the following coverage or insurances :
                    1. Life Insurance
                    2. Critical Illness
                    3. Hospitalisation
                    4. Endownment Plan w/ Life coverage

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                    • #11
                      Originally posted by Andre- View Post
                      1 Life Insurance ? I suggest you change your banker if he tells you that just 1 life insurance policy is enough. Life insurance basically covers only death or permanent disability in some cases. However you do realise you are missing out on essential coverages such as critical illness / hospitalisation. Think about it, which is more expensive, to hold a funeral or to pay for hospitalisation bills which can span more than a few months for critical illness, and dont forget long term treatments too.

                      For ladies do check up on Carcinoma-in-situ insurance to make sure you are well covered for cancer. Do not leave things to chance because when illnesses hits, they hit hard.

                      In my own opinion, an average adult should at least have the following coverage or insurances :
                      1. Life Insurance
                      2. Critical Illness
                      3. Hospitalisation
                      4. Endownment Plan w/ Life coverage

                      I guess I never really did think i needed critical/hospitalisation insurance but I was quite young then too Good point. I probably should get some now but I don't think I would want an endownment plan. Do you perhaps have any thoughts on dbs personal insurance? My life insurance is with them and I quite like them so want to save the hassle of going to another insurer. Was thinking of getting my shield?

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                      • #12
                        Hi Carrielicious, I jus happened to chance upon this thread and saw ur reply. I am a financial consultant but rest assured I am not trying to get any biz here, U shld be looking at shield plans first, which are hospitalization plans as they are the most impt in terms of financial planning. As for which company is up to what u prefer, the shield that DBS offers shld be under Aviva. Just make sure that you add in the cash rider for coverage on co-insurance and deductibles. Hope the information helps u.

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