Author: Singapore Money Matters

Who can claim your CPF savings when you die without legal heirs and nominees?

In my recent article How will your CPF savings be distributed if you are no longer around, I explained that if you pass away without proper Nomination, your CPF savings (Ordinary, Special, Medisave and Retirement Accounts) will be transferred to the Public Trustee for distribution to your family under the intestacy laws. Under Intestacy Law, if you have no spouse, no children, no parent, no brother or sister, no grandparent, no uncle or aunt, the money will go to the government. Under the Civil Law Act amendments approved by Parliament yesterday, the Government will be able to distribute CPF...

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What is Dependants’ Protection Scheme (DPS)?

The Dependants’ Protection Scheme (DPS) is an affordable term insurance scheme that provides insured members and their families with some money to get through the first few years should the insured members become permanently incapacitated or pass away. Currently, DPS is administered by two insurers, Great Eastern Life and NTUC Income. The scheme is extended to CPF members who are Singapore citizens or Permanent Residents, between age 16 and 60, when they make their first CPF contribution. DPS is an optional term insurance which covers CPF members for a maximum sum assured of $46,000 up to age 60. The...

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How will your CPF savings be distributed if you are no longer around?

If you pass away, your CPF savings (Ordinary, Special, Medisave and Retirement Accounts) will be transferred to the Public Trustee for distribution to your family under the intestacy laws. For example, if you are single, your CPF savings will be distributed by the Public Trustee equally between your parents. If you are married, your spouse will receive half of your CPF savings, and your children will share the remaining half. Your CPF monies will go to the Government only in the absence of a spouse, children, siblings, grandparents, an uncle or aunt. For Muslims, your CPF savings will be...

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Who causes the increase of motor insurance premium

Motorists always accuse the insurance companies of increasing of motor insurance premium every year. Being an independent adviser and dealing with nearly all insurers in Singapore and many claims, I know deeply that it is your fellow motorists are the ones to be blamed. Not to mention the accidents caused by merely reckless driving like recent Rochor road Ferrari crash motor insurance claim, a lot of insurance losses are due to fraudulent claims. “Aviva Singapore, estimates that around a fifth of all car insurance claims it receives have been inflated to varying amounts. NTUC Income said it believes that...

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CPF extends 4% interest rate again, How long can it last?

CPF is going to extend 4 per cent minimum interest rate on savings in the Special, Medisave and Retirement accounts (SMRA) until Dec 31, 2013. Since Jan 1, 2008, these savings have been invested in Special Government Securities which earn an interest rate pegged to the formula of: 12-month average yield of 10-year Singapore Government Securities (SGS) + 1% Many people are not aware of the impact of such pegging. The average yield of the securities plus 1 per cent was merely 2.55% from Sept 1 last year to Aug 31 this year. CPF members were lucky because since...

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What is the Critical Illness Survival Period?

Singapore’s top killer may be cancer, but the second leading cause of mortality is heart disease. According to an Asiaone article, Heart disease accounted for 20.1 per cent of deaths in Singapore in 2008, while cancer accounted for 29.3 per cent. Many people are aware of the risk of such critical illnesses and have purchased critical illness insurance. However, many might be shock to know if death happens immediate after a heart attack, their family may not receive any payout from the insurer. Why? People always jokingly say “you can die in Singapore but never fall sick”, so some...

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Should AXA Pay For Rochor Road Ferrari Crash Motor Insurance Claim?

It can be shocking to many motorists when AXA just decided not to honor the motor insurance claim in the high profile Rochor Road Ferrari Crash. In the crash, the driver Mr Ma had allegedly run a red light in Rochor Road. His car rammed a taxi, which then hit a motorcycle. The accident left three people, including Mr Ma, dead and two others injured. In court papers filed on Monday, AXA stated that the May 12 crash was a “collision” and not an accident: “Ma Chi was doing an act which he knew or ought to have known...

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How Much Do Insurance Agent and Property Agent Earn?

It has always been a misconception that insurance agents and property agents earn hundreds of thousands of dollars or even millions every year by pushing sales to the customers. After all, the media likes to feature the top performers. Just last week, Sunday Times interviewed a 23 years old part time insurance agent who earned $200,000 in his first year in the business. Maybe MAS is thinking the same way and feeling that the rogue agents must be torn down and proposed Financial Advisory Industry Review (Fair)  to ban the commissions. But is the insurance industry really so rosy?...

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Zurich Early Stage Critical Illness Plan (Z Care)

Zurich Life Insurance Singapore has recently launched a new product Z Care which is regular premium critical illness plan which covers the Life Assured against any of the 30 Critical Illnesses. The plan has a unique Early Stage Critical Illness Option feature to claim up to 50 % against the policy for early stages of Critical Illnesses as defined. Once a Early Stage Critical Illness claim has been made against the policy, all future premiums are waived. Early stage critical illness coverage was sold like hot cakes in recent years. New products are mushroomed and insurers just keep adding...

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Singapore Inflation Eases and Strength of Singapore Dollar

Singapore CPI dropped to 4% year on year, lower than the market’s expectation, due to a more moderate increase in costs of accommodation, private road transport and oil-related items. The Monetary Authority of Singapore (MAS) lowered its forecast for core inflation to 2.5%-3% for the whole year as overall global commodity prices remain below year-ago levels, keeping domestic oil and food inflation contained. In the past, MAS has been continuing with the policy of modest and gradual appreciation of the Singapore dollar to combat inflation. Given easing inflation and less risk of a technical recession, I think there is...

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Aviva ElderShield Premium Rebate

Aviva is offering one time premium rebate for ElderShield renewal. What is ElderShield ElderShield is an affordable severe disability insurance scheme which provides basic financial protection to those who need long-term care, especially due to frailty in old age. It provides a monthly cash payout to help pay the out-of-pocket expenses for the care of a severely-disabled person. Why a premium rebate? When ElderShield was first launched in 2002, there was very little Singapore-based data on severe disability claims to help guide the initial design and pricing of the ElderShield scheme. In view of this, Ministry of Health (MOH)...

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How is property gifted by spouse treated upon divorce

Released on Thursday, the Court of Appeal made this clear in decision grounds in the case of a woman who had been given shares to three properties by her husband during their 36-year marriage. GIFTS between spouses in the course of a marriage will be treated as matrimonial assets to be totted up and split between them if they divorce. In the case of a woman who had been given shares to three properties by her husband during their 36-year marriage. The husband sought for all three properties to be put on the list of matrimonial assets to be...

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Enhancements to the Child Development Account (CDA)

The Child Development Account (CDA) is part of the Baby Bonus or Child Development Co-Savings (Baby Bonus) Scheme, which aims to help families with the costs of raising children. The CDA also encourages parents to save for their children’s developmental needs. The Government matches parents’ deposits into the CDA dollar-for-dollar, subject to a cap based on the child’s birth order. Total Baby Bonus Benefits for Child born on or after 17 August 2008 are shown as below: Since last enhancement in 2008, this year, government has announced Child Development Credits and Enhancements to the Child Development Account (CDA) with effect from 1 July 2012 More Approved Institutions...

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Watching COE Market is like Watching Stock Market

Watching COE market is just like watching stock market, my belief is reaffirmed again that the mass market and media always get it wrong. Apr 19, 2012 – Straits Times: COE prices continue steep climb CERTIFICATE of entitlement (COE) prices for cars up to 1,600cc and taxis are at an all-time high. They posted the strongest gain of 9.7 per cent to hit a record $64,201 in the latest tender which saw prices continuing their rise across the board yesterday. COE for cars above 1,600cc ended 8.7 per cent higher at $91,000 – the fourth-highest level in history and not far...

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IPO Fever is Back

Just one month ago, TheEdge wrote an article “IPOs have ’0′ friends right now“, quoting the keenly-anticipated initial public offering of Formula One had been shelved and London-based jeweller Graff Diamond pulled its Hong Kong US$1 billion IPO 24 hours before its was expected to be priced. In Singapore, the IPO fever is just getting hotter. Food catering group Neo Group jumped 55% from its IPO price $0.30 to $0.465 on its first day of debut.  Maxi-Cash, which was listed end of last month, is also trading more than 40% above its IPO price now. The mega dual listing of...

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