Savings Plan
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wa liao eh.
cannot man
wait until CNY over? LOL
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Ok. can lor. No hurry.
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or we wait until 1 day, government help u lah.
sooner or later, they will rebuild chinatown or do some construction stuff or wad. den ur that unker run away le lor
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Ok. Deal.
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Originally posted by JerryYan:
there's a guy in sgf working for AIA
if u interested i can recommend him
Why he has no business huh ?
So, need you to recommend business lah, is it ?
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May i recommend that for the next few years at least, you could consider a pure savings plan without insurance coverage. Do a RSP ( regular savings plan) with either POEMS, Finatiq, FundSupermart, or Dollardex. Invest your money into a unit trust regularly for the next 5 years thereabouts.
Why? Because stocks are cheap now and should get cheaper over the next few years. By investing in a unit trust u maximise your returns by diversifying your portfolio and buying into a range of stocks. Cash out in a few years ( maybe 5?) and you should have a small lump sum at least.
In the meantime to protect yourself from any castrophes u might want to buy a term insurance policy. Assuming you are healthy and have no illnesses, and assuming you are below 25, your premiums should not cross $20 a month for $100000 coverage.After 5 years you may want to buy an investment linked policy.
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Originally posted by maxtor:
May i recommend that for the next few years at least, you could consider a pure savings plan without insurance coverage. Do a RSP ( regular savings plan) with either POEMS, Finatiq, FundSupermart, or Dollardex. Invest your money into a unit trust regularly for the next 5 years thereabouts.
Why? Because stocks are cheap now and should get cheaper over the next few years. By investing in a unit trust u maximise your returns by diversifying your portfolio and buying into a range of stocks. Cash out in a few years ( maybe 5?) and you should have a small lump sum at least.
In the meantime to protect yourself from any castrophes u might want to buy a term insurance policy. Assuming you are healthy and have no illnesses, and assuming you are below 25, your premiums should not cross $20 a month for $100000 coverage.After 5 years you may want to buy an investment linked policy.
Thank you. I am actually 26 this year. What are the monthly premiums below $100 available? -
Originally posted by cherrycola:
Thank you. I am actually 26 this year. What are the monthly premiums below $100 available?Assuming u r a non-smoker with no major health liabilities, term insurance coverage for $100k to $300k will cost about $20-$30 a month. Some of the term insurance policies i like are Manulife's and UOBLife's. UOBLife's term insurance policy offers lifetime coverage at a fixed amount- about $60 p/mth for $100k coverage. ( Most term insurance policies only cover you until you are 65 and in my opinion, your major concern will be after 65). Although i recommended you keep it for only 5 years you may decide that $20 - $60/mth is a small price to pay for keeping yourself protected.
As for the RSP (regular savings plan), min investment will be $100 a month. Do note that investments are not risk free and there is a chance that you might not make, or even lose money. That being said i think the reward outstrips the risk, esp this period in time. These websites will be of more help to you.
http://www.fundsupermart.com
http://www.dollardex.com
http://www.poems.com.sg
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one more thing, if you die die can only afford $100/mth u may want to consider an investment linked policy with any insurance company/bank. ILPs typically offer you both insurance coverage and investment for as low as $100/mth.
That being said I will not recommend an ILP at this point in time. Assuming savings of $100 p/mth or $1200 p/yr, charges are very high ( typically:-
1st yr 80% of your premium = $960
2nd yr 80% of premium = $960
3rd yr 40% of premium = $480
Total = $2400
These charges exclude a monthly policy fee (typically $5/mth), sales charge (5% of amt invested), and insurance charges (about $4-5/mth).
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Originally posted by maxtor:
one more thing, if you die die can only afford $100/mth u may want to consider an investment linked policy with any insurance company/bank. ILPs typically offer you both insurance coverage and investment for as low as $100/mth.
That being said I will not recommend an ILP at this point in time. Assuming savings of $100 p/mth or $1200 p/yr, charges are very high ( typically:-
1st yr 80% of your premium = $960
2nd yr 80% of premium = $960
3rd yr 40% of premium = $480
Total = $2400
These charges exclude a monthly policy fee (typically $5/mth), sales charge (5% of amt invested), and insurance charges (about $4-5/mth).
Thank you for your info. I will be meeting up with a friend from prudential insurance today. See what he advises me. -
he will ask u to buy this plan called PruLink. it's an ILP that covers you for death, critical illnesses at an amount u choose. it also helps u to invest your savings.
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Originally posted by maxtor:
May i recommend that for the next few years at least, you could consider a pure savings plan without insurance coverage. Do a RSP ( regular savings plan) with either POEMS, Finatiq, FundSupermart, or Dollardex. Invest your money into a unit trust regularly for the next 5 years thereabouts.
Why? Because stocks are cheap now and should get cheaper over the next few years. By investing in a unit trust u maximise your returns by diversifying your portfolio and buying into a range of stocks. Cash out in a few years ( maybe 5?) and you should have a small lump sum at least.
In the meantime to protect yourself from any castrophes u might want to buy a term insurance policy. Assuming you are healthy and have no illnesses, and assuming you are below 25, your premiums should not cross $20 a month for $100000 coverage.After 5 years you may want to buy an investment linked policy.
What exactly is a term plan? I am currently holding an ntuc life policy. How is the two different?
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A term plan is an insurance policy that covers you in the event of death. You may opt to include critical illness cover e.g. major cancers, heart problems etc. at a premium. Usually the coverage for a term plan starts from 100k up. This means that in the event that something happens to you, the insurance company will pay out the amount you are insured for.
The good thing about term plans is they are usually very cheap. They cost less than $50 a month (dependent on age) and they cover a very high sum (100k and up). They are therefore a very affordable option if you decide you don't want to spend too much on insuance but you want cheap cover.
The disadvantages? Term plans do not have cash value in them, meaning if nothing happens to you, you don't get paid. They are usually considered pay and forget plans, where you pay and forget about the money. They also (usually) cover you until age 65-66, depeding on insurance company.
Your NTUC life policy probably is an endowment policy. I would need to see the details before i can tell you more, but as a good gauge, if you're paying around $100 a month, there's a good chance that you are covered for about $50k. Your NTUC plan would also probably have cash value in it, meaning if you decide to terminate the plan you would get some money back.
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Originally posted by maxtor:
A term plan is an insurance policy that covers you in the event of death. You may opt to include critical illness cover e.g. major cancers, heart problems etc. at a premium. Usually the coverage for a term plan starts from 100k up. This means that in the event that something happens to you, the insurance company will pay out the amount you are insured for.
The good thing about term plans is they are usually very cheap. They cost less than $50 a month (dependent on age) and they cover a very high sum (100k and up). They are therefore a very affordable option if you decide you don't want to spend too much on insuance but you want cheap cover.
The disadvantages? Term plans do not have cash value in them, meaning if nothing happens to you, you don't get paid. They are usually considered pay and forget plans, where you pay and forget about the money. They also (usually) cover you until age 65-66, depeding on insurance company.
Your NTUC life policy probably is an endowment policy. I would need to see the details before i can tell you more, but as a good gauge, if you're paying around $100 a month, there's a good chance that you are covered for about $50k. Your NTUC plan would also probably have cash value in it, meaning if you decide to terminate the plan you would get some money back.
My ntuc policy is the whole life living policy. I am thinking of surrendering the policy and buying a term plan instead.
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Originally posted by cherrycola:
My ntuc policy is the whole life living policy. I am thinking of surrendering the policy and buying a term plan instead.
u have to tell me more. how much are the premiums, how much are you covered for etc.
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Originally posted by maxtor:
u have to tell me more. how much are the premiums, how much are you covered for etc.
My monthly premium is $76.55. I am covered for $50k. -
Originally posted by cherrycola:
My monthly premium is $76.55. I am covered for $50k.ok. i need to ask you first, why would you want to buy a term plan? r u looking for higher coverage? cheaper premiums?
i can understand your desire to obtain the best value for money plan, but do not forget that there are tradeoffs in everything. in the case of a plain vanilla term policy coverage is high but not comprehensive. remember, you pay peanuts, you get monkey.
if im not mistaken, if u terminate your ntuc policy now u will receive some cash value. as to how much i am not certain, you would have to check back on the policy details. i also think the coverage for your ntuc life policy is quite comprehensive as it would probably include protection against the 30 critical illnesses.
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Originally posted by maxtor:
ok. i need to ask you first, why would you want to buy a term plan? r u looking for higher coverage? cheaper premiums?
i can understand your desire to obtain the best value for money plan, but do not forget that there are tradeoffs in everything. in the case of a plain vanilla term policy coverage is high but not comprehensive. remember, you pay peanuts, you get monkey.
if im not mistaken, if u terminate your ntuc policy now u will receive some cash value. as to how much i am not certain, you would have to check back on the policy details. i also think the coverage for your ntuc life policy is quite comprehensive as it would probably include protection against the 30 critical illnesses.
Yes. I must say that the ntuc policy is very comprenhensive.
But I was wondering if it would be wiser to purchase a term plan together with a shield plan which is payable by medisave. Wouldn't that be equally comprenhensive with a lower premium altogether?
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Cover yourself first. Get a medical plan for critical illnesses and also adequate death and Total Permanent Disability Coverage before you consider investment or saving plans if you are tight for budget. These are much more important especially when you are young and healthy. I regret not buying when I was younger cos now with my diabetes, high blood and obesity, there are no agencies that are willing to extend any policies to me and even MANULIFE who offers to me is charging me upwards of $450 for the policy which makes no sense. So I kena cancer now, my saving plans would not be able to save me. So, priority is to cover yourself with these plans first.
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I think NTUC has a insurance cum investment plan.
Think you pay about $2K annually (dependsing on age i think) for $100K insurance.
At the end of 30 years or so, you can change it to an annuity or get back a lump sum or something like that.
Maybe that might be good, since you can get insurance plus a so called "regular savings plan".
You need to check with NTUC for details and suitability though.
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Originally posted by gasband:
Cover yourself first. Get a medical plan for critical illnesses and also adequate death and Total Permanent Disability Coverage before you consider investment or saving plans if you are tight for budget. These are much more important especially when you are young and healthy. I regret not buying when I was younger cos now with my diabetes, high blood and obesity, there are no agencies that are willing to extend any policies to me and even MANULIFE who offers to me is charging me upwards of $450 for the policy which makes no sense. So I kena cancer now, my saving plans would not be able to save me. So, priority is to cover yourself with these plans first.
Yes.I am not considering any saving or investment plans at the moment. I wish to take up the term plan and a prushield plan. I am jus wondering if these two plans are actually more comprehensive than my current ntuc living policy. If so, I wish to surrender the latter cos I will be saving on my monthly premium. -
Originally posted by charlize:
I think NTUC has a insurance cum investment plan.
Think you pay about $2K annually (dependsing on age i think) for $100K insurance.
At the end of 30 years or so, you can change it to an annuity or get back a lump sum or something like that.
Maybe that might be good, since you can get insurance plus a so called "regular savings plan".
You need to check with NTUC for details and suitability though.
Hmmm.... the premium seems high in comparison to the sum assured.
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Insurance is nothing but a company using your funds to invest into stock markets, from the investment gains, they deduct off their salaries and other cost, then they distribute what's left to you.
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Originally posted by maurizio13:
Insurance is nothing but a company using your funds to invest into stock markets, from the investment gains, they deduct off their salaries and other cost, then they distribute what's left to you.
I feel that insurance is necessary. cos u nvr know when u need it. -
Originally posted by cherrycola:
Yes. I must say that the ntuc policy is very comprenhensive.
But I was wondering if it would be wiser to purchase a term plan together with a shield plan which is payable by medisave. Wouldn't that be equally comprenhensive with a lower premium altogether?
Possibly, yes. But again it all depends on your needs and what you are looking for. Ok let's say you are looking to do the shield+term plan option. Your term policy will cost you possibly $30-$60 thereabouts + whatever your shield plan costs you. (Btw, AIA has some very good shield plans payable by medisave, you should check them out.) that will cover you for about $100k-$300k (dependent on insurance company and plan).
This option will give you comprehensive coverage, but may not result in a lower premium. Money from medisave, though intangible, is your money after all.
Most term plans will only cover u until age 65. The only term plan i know that covers you for life is UOBLife's. But that option is going to cost you about $70 p/mth for 100k coverage, and it only protects against death.
If you are really concerned about comprehensive life protection, may i suggest you buy a limited pay life protection policy. I must forewarn that this option is quite expensive. About 4k per year ($330/mth). However you only pay for a limited time (usually 10-15yrs), and it covers you for life with very good coverage. Plus side is your coverage grows as you grow older, you get cashback, and you only pay premiums for a limited time. Downside is it can be quite painful financially ($330/mth). But if you are looking to save money and get comprehensive protection for life, i will strongly recommend this option.