Savings Plan

cherrycola SG

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.

maxtor SG

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.

cherrycola SG

ok. i need to ask you first, why would you want to buy a term plan? r u looking for higher coverage? cheaper premiums?

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?

gasband SG

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.

charlize SG

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.

cherrycola SG

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.

cherrycola SG

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.

maurizio13 SG

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.

cherrycola SG

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.

maxtor SG

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.

maxtor SG

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.

cherrycola SG

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.

THe overall premium will be lower as i am looking at the prudential term plan which costs only $20 per mth.

maurizio13 SG

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.

maurizio13 SG

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.

maxtor SG

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.

charlize SG

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.

maurizio13 SG

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).

maxtor SG

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.

maurizio13 SG

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.

cherrycola SG

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.

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