Savings Plan
-
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.
Bro i used to think like that as well, but i have been convinced that all of us need insurance. simply because if something happens to me, i want my loved ones to benefit, not suffer (esp financially) from my passing.
-
Originally posted by maxtor:
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.
THe overall premium will be lower as i am looking at the prudential term plan which costs only $20 per mth. -
Originally posted by cherrycola:
I feel that insurance is necessary. cos u nvr know when u need it.
it's risk diversification, but then again during your younger years the probability of occurence is lower, that's why it's always cost more to get insured when one is older.if a person is high risk group, they also don't want to insure you, all in all, they want to make money from you rather than lose money.
-
i have a very good friend, when he was working in AIA, he offered to give me back all the money made by him, still i don't believe in buying.
-
Originally posted by cherrycola:
THe overall premium will be lower as i am looking at the prudential term plan which costs only $20 per mth.yes but what is the point of covering yourself only until age 65 ? chances are that if anything is going to happen to you, it will happen after you r 65, not now.
and, people in the industry all know that prudential's insurance charges are the highest of them all, if not one of the highest. i have personally compared plans so i would assume i know.
-
Since we are on this topic, you guys think it is a good idea to have these insurance cum investment plans?
Gives insurance plus a regular savings plan.
-
Originally posted by maxtor:
Bro i used to think like that as well, but i have been convinced that all of us need insurance. simply because if something happens to me, i want my loved ones to benefit, not suffer (esp financially) from my passing.
insurance is a long term commitment, i once had a friend who over bought her policy, when she lost her job, left in a predicament.
insurance is only worthwhile if you die immediately after signing the contract, else it's not worth it.
the returns you get from them, you can get better returns in the stock market (long term).
-
Originally posted by charlize:
Since we are on this topic, you guys think it is a good idea to have these insurance cum investment plans?
Gives insurance plus a regular savings plan.
my earlier posts shares my view on these insurance cum investment plans (also known as investment linked policies).
u might want to take a look at them first before making a commitment.
i'd be happy to help answer any questions within my knowledge.
-
the other type of people who needs insurance are those who have family history of contracting certain chronic of terminal diseases, but the insurance company will normally check you out to ensure that your family does not have any, to reduce their risk of premature payout.
-
Originally posted by maxtor:
yes but what is the point of covering yourself only until age 65 ? chances are that if anything is going to happen to you, it will happen after you r 65, not now.
and, people in the industry all know that prudential's insurance charges are the highest of them all, if not one of the highest. i have personally compared plans so i would assume i know.
BUt my current ntuc living policy also covers me up to 65 years only as well. -
insurance is for risk diversification, but if your risk is too high, no insurance would want to insure you, else they charge you high premiums.
-
Originally posted by charlize:
Since we are on this topic, you guys think it is a good idea to have these insurance cum investment plans?
Gives insurance plus a regular savings plan.
My opinion is that insurance and investment should be seen as 2 separate entities. -
one of my friends, he paid like $1,500 a year for 15 years, turns out that his surrender value is only $30k plus, an implicit interest rate of around 5% a year.
initially i thought he must have at least $100k plus in his insurance.
-
Originally posted by maurizio13:
insurance is a long term commitment, i once had a friend who over bought her policy, when she lost her job, left in a predicament.
insurance is only worthwhile if you die immediately after signing the contract, else it's not worth it.
the returns you get from them, you can get better returns in the stock market (long term).
that is true. but illness/death is an uncertainty and there are people who do not want to take that risk.
let's say you are 30, married, have a housing loan, car loan, probably a kid on the way. if something happens to you the next day, the next month, the next year. who will pay for your housing loan? car loan? kid's expenses?
the thing about insurance is that it gives you peace of mind in the form of an immediate estate, something many people relish. nobody knows what will happen to them tomorrow, next month or in the next few years.
-
Originally posted by cherrycola:
BUt my current ntuc living policy also covers me up to 65 years only as well.yes, then you should consider getting something that covers you for life. trust me, 10,20 years from now, you wouldn't regret it.
u might want to work on the assumption that you would probably be gainfully employed within the next 10-20 years, and therefore the bulk of the premiums should be settled during that time, while you have a stable income.
-
Originally posted by maxtor:
that is true. but illness/death is an uncertainty and there are people who do not want to take that risk.
let's say you are 30, married, have a housing loan, car loan, probably a kid on the way. if something happens to you the next day, the next month, the next year. who will pay for your housing loan? car loan? kid's expenses?
the thing about insurance is that it gives you peace of mind in the form of an immediate estate, something many people relish. nobody knows what will happen to them tomorrow, next month or in the next few years.
the probability of a healthy individual dying the next day after kid and marriage is slim, can check the mortality tables.moreover i have the government's backing in saying that Singaporeans will live till 80-90.
with the current economic situation, what happens if the person gets retrenched and unable to pay his premiums.
-
actually it's subjective, as for me, i have never believed in personal insurance.
i might change my views in the future, but chances of me changing my views are extremely slim.
-
Originally posted by maxtor:
yes, then you should consider getting something that covers you for life. trust me, 10,20 years from now, you wouldn't regret it.
u might want to work on the assumption that you would probably be gainfully employed within the next 10-20 years, and therefore the bulk of the premiums should be settled during that time, while you have a stable income.
I assume that those that cover for life are more expensive. I actually see the term plan as a temporary stable coverage. Should I have better financial ability in future, I would definitely consider a whole life plan.
-
Originally posted by maurizio13:
actually it's subjective, as for me, i have never believed in personal insurance.
i might change my views in the future, but chances of me changing my views are extremely slim.
i was exactly the same. i never believed in insurance, believing it to be a scam as well. well, i've been brainwashed :)
-
Originally posted by maxtor:
i was exactly the same. i never believed in insurance, believing it to be a scam as well. well, i've been brainwashed :)
actually after learning more about finance and actuarial science, i am kinda more averse it more.
-
Originally posted by maurizio13:
with the current economic situation, what happens if the person gets retrenched and unable to pay his premiums.
that's a valid concern. there are plans in the market that will let you temporarily postpone your premiums indefinitely, yet cover you during the period you r retrenched as well.
-
Originally posted by maxtor:
that's a valid concern. there are plans in the market that will let you temporarily postpone your premiums indefinitely, yet cover you during the period you r retrenched as well.
no offence, but,do you deal in insurance?
cover for how long without paying premiums? indefinitely?
need to have accumulated sum in there or if the policy is in negative territory, you still allow coverage? or is it the insured using his positive values in there to deduct against premiums?
-
Originally posted by cherrycola:
I assume that those that cover for life are more expensive. I actually see the term plan as a temporary stable coverage. Should I have better financial ability in future, I would definitely consider a whole life plan.
u r right. they are more expensive. but if you are going to throw $20 p/mth down the drain every month (in the form of a term plan since there is no definitive cash value at the end) plus u plan to do some form of savings, why not do abit of both?
i see your concern. u want something temporary but covers you for now. today u are single, earn a meagre salary, and probably have no liabilities. a few years from now you will probably be married, earning more, but have alot more liabilities in the form of kids/loans/(this list can go on forever). when then is a good time?
there never is a good time. try to look at it as an investment, you r much better off that way.
-
Originally posted by maxtor:
u r right. they are more expensive. but if you are going to throw $20 p/mth down the drain every month (in the form of a term plan since there is no definitive cash value at the end) plus u plan to do some form of savings, why not do abit of both?
i see your concern. u want something temporary but covers you for now. today u are single, earn a meagre salary, and probably have no liabilities. a few years from now you will probably be married, earning more, but have alot more liabilities in the form of kids/loans/(this list can go on forever). when then is a good time?
there never is a good time. try to look at it as an investment, you r much better off that way.
What are some of the good life policies that you reccommend?
-
Originally posted by maurizio13:
no offence, but,do you deal in insurance?
cover for how long without paying premiums? indefinitely?
need to have accumulated sum in there or if the policy is in negative territory, you still allow coverage? or is it the insured using his positive values in there to deduct against premiums?
yup i used to deal in insurance. i was a bank relationship manager with one of the local banks. have since left in search of greener pastures.
errm, with regard to the other question, coverage can be indefinite so long as there is an accumulated sum in there. the insured is using his positive values to deduct against premiums.