TheFinance.sg » Insurance

Getting Medical Insurance Early

Martin Lee — Tue, 31 Jan 2012 04:19:39 +0000

There was an article in The Sunday Times over the weekend which talked about the important of getting medical insurance early while you are still young and healthy.

This is because if you wait until you have a medical condition before getting insurance, that condition will not be covered.

Or even worse, your entire application can be declined.

Better to Get Medical Insurance While Young and Healthy (Sunday Times)

Please also read the portion in the green column “Think before you switch”.

whole-of-life alternative to universal life

Patrick Lim — Sat, 28 Jan 2012 14:05:00 +0000

an article with the abovementioned title by ms genevieve cua in the weekend edition of the business times caught my eye.

in her article, ms cua touched on some basics of whole life and universal life products. she also said that the appeal of universal life lies partly in the flexible premium financiing and rightly pointed out the latter calls up a different set of risks of which one caveat is that as the client ages and a scenario should rates fall to the minimum crediting rate, it may be possible that the death benefit may decline and clients may be asked to top-up the premium to ensure the policy does not lapse. on this, ms cua pointed out that some universal life products do have a ‘no-lapse’ guarantee option but this comes with an additional premium.

the article singled out tokio marine life insurance tm legacy vip, a single …

Myths and Truths of the Life Insurance Industry

Gary Tay — Wed, 25 Jan 2012 15:45:00 +0000

Life insurance is something very close to my heart. It was one of the first financial products I marketed since I joined a local bank as a financial consultant 5 years ago. Toda, I am a firm advocate of proper insurance planning and am glad that my career decision has allowed me to gain tremendous exposure by meeting people from all walks of life. However, like all jobs, it is not always smooth sailing. It is a well known fact that 90% of financial advisers, especially those of tied agencies, do not stay long in the industry. To date, I have at least changed 3 different insurance advisers over the past 3 years, all of whom are young and aspiring graduates who decide to call it quits.

It is a worrying trend given such high attrition rates. I believe it can be attributed to the …

Closure of NTUC Growth Plan

Martin Lee — Wed, 11 Jan 2012 04:39:40 +0000

The Growth Plan from NTUC is one of the more popular single premium endowment plans in the market for a duration of five years or more.

While the returns are nowhere near what you can get from an equity investment, it does give a conservative and steady returns of 2-4%+ p.a.

The interest rates in Singapore have reduced quite significantly over the past few years. 12-month fixed deposit rates are now hovering around 0.4% p.a. compared to 0.9% p.a. 5 years ago. Similarly, 5-year Singapore government bond yields have declined from 3.2% p.a. …

CPF members enjoy average 12% savings on Home Protection Scheme (HPS)

Ivan Guan — Tue, 10 Jan 2012 08:44:48 +0000

With effect from 1 January 2012, about 362,500 CPF members who are paying annual Home Protection Scheme (HPS) premiums will enjoy average savings of 12% on their premiums. This constitutes 80% of members who are currently paying annual premiums for their HPS, while the rest will continue to enjoy the low premium rates they are currently paying.

With the reduction, CPF members will pay significantly lower HPS premiums. For example, a male member aged 36 years old who is servicing a $150,000 housing loan from HDB for 25 years, will pay a lower premium of $195.30 instead of $223.05 (equivalent to a 12% discount), when he joins the scheme from 1 January 2012.

Members who join the HPS scheme on or after 1 January 2012 will get to enjoy the new rates, while existing members paying annual HPS premiums will pay the lower premiums when they renew or …

ntuc-income: repricing of growth plan

Patrick Lim — Fri, 06 Jan 2012 09:01:00 +0000

this is really fresh from the oven because we have just received an urgent email notification from ntuc-income (at approx 6pm):

Dear Valued Partners,

Over the last few years, interest rates have declined significantly. 12 months fixed deposit rates are now hovering around 0.4% p.a. compared to 0.9% p.a. 5 years ago. Similarly, 5-year Singapore government bond yields have declined from 3.2% p.a. 5 years ago to 0.9% p.a. today. As a result, it is becoming increasingly challenging to design and price this type of single premium savings plan, such as our Growth Plan. As you know, many of our fellow competitors areno longer selling such plans.

We will be _replacing_ thecurrent version of *Growth Plan (GRL3)*with a new revised version. Details of the new version of Growth Plan to replace the current version will be made in a separate announcement. The …

aia singapore pte ltd

Patrick Lim — Wed, 04 Jan 2012 14:08:00 +0000

with effect from january 01, 2012, aia, in a media release announced that aia in singapore will be known as aia singapore pte ltd with the insurance business in singapore being successfully transferred from a branch to a singapore-incorporated and a wholly-owned subsidiary of american international assurance company, limited. aia singapore also announced its inaugural AA- financial strength rating with stable outlook from rating agency, standard & poor’s.

the ceo of aia singapore, mr tan hak leh said:

“having been in operation as a branch office in singapore for over 80 years since 1931, the transfer of our business to a singapore-incorporated company – aia singapore – is a very significant milestone for us. it reinforces our commitment to meeting the protection and savings needs of singaporean families across generations and we will continue to introduce innovative products and deliver quality service to help singaporean families bridge their underinsurance gap….

aia promotion

Patrick Lim — Tue, 03 Jan 2012 09:23:00 +0000

i shall kick-off my very first blog entry for 2012 with some good news from aia.

aia is currently having a promotion for 4 of their champion products:

a. aia complete critical cover
b. aia family first protect
c. aia life plus and
d. aia secure term plus

where there is a special premium discount of up to 25% for taking up any one of the abovementioned products.

the promotion period is from january 01 – 31 january 31, both dates inclusive, except aia secure term plus for which the promotion period of december 12, 2011 to january 31, 2012, both dates inclusive, applies.

the 25% premium discount is limited to aia complete critical cover as well as any and all optional riders purchased with it and plans eligible for the 20% discount are limited to aia family first protect, aia life plus and aia secure term plus as well …

How to calculate bonuses for participating life policies

Wilfred Ling — Sat, 31 Dec 2011 08:04:47 +0000

Someone asked me how to calculate bonuses for participating life policies. I asked the individual to provide me with the latest benefit illustration. The policy was already in-force for some time already. I will use this policy as an example on how to calculate bonuses. Unfortunately, there was insufficient information to calculate bonuses for surrender values. So the illustration below is only for bonuses due to death claims.

The relevant information provided by the benefit illustration is shown below:

First, the benefit illustration clearly shows that the guaranteed death benefit at the end of year X is $87,420.17. This consists of two components, the sum assured of $50,000 and the accumulated attaching bonuses that were already previously declared amounting to $37,420.17. Sanctity check: 50000+37420.17 = $87,420.17.

To calculate the non-guaranteed death benefit at the end of year X, the following steps are required to be taken:

…

Keeping a share trading journal

Guest Writer — Thu, 29 Dec 2011 04:40:46 +0000

Since the advent of online share trading, people have been able to trade more independently. When previously every trade you made would be actioned by a broker, who would then keep records, now traders can buy and sell through online platforms.

And, although some of these platforms may record your trades, your profits and losses and your running total, there are a number of reasons why it is beneficial to maintain a separate trading journal.

1. Historical record

Over time, your journal will offer a historical perspective of both your winning and losing trades, including trading patterns you may not have realised you had, and this can be valuable in preventing future mistakes.

It will also show the profit and loss of your individual trades, and their accumulated effects to date, allowing you to measure your share trading performance.

2. Planning

Along with providing historical information, a good trading journal should also record information on your plans for each trade. This makes it more likely that you will consider each trade before entering it by setting parameters for where you want to enter, your risk-reward ratio, and how you will manage the position while it is open.

From a historical perspective, it will also offer another aspect for evaluating what was successful for you and what wasn’t.

3. Future trading

Being able to evaluate your trading performance in detail can help you develop your trading skills and change your habits, so you make fewer mistakes and more winning trades. This can also make you feel more in control of your trading – your profitable trades will no longer feel random, and you will no longer get so attached to losing trades, which is an important part of trading psychology.

Your share trading journal

A good trading journal should consist of the following:

A chronological list of trades including dates, times, opening and closing prices, profits and losses, and a running total of your account balance.
A printout of the charts you used to determine the trades, noting down your entry and exit prices, your stop losses and your profit targets.
Your reasons for entering the trade including
1. Fundamental – “there is a company announcement coming out today that, based on the company’s balance sheet, I believe will be negative and will result in the share price falling”
2. Technical – “the share price has reached a support or resistance level”
3. Sentimental – “market bullishness has been very high for months and it is no longer supported by fundamentals or technicals, so we may be approaching a reversal”

Also, if you use a variety of trading systems, it is a good idea to keep a journal for each one. Although it might be extra work, combining different trading systems in a single journal will incorporate too many variables for you to accurately measure what works and what doesn’t.

Evaluating your trading system

Once your journal is established, a formula for calculating the expected returns of your trading system is:

Expectancy = [1 + (Average winning trade/average losing trade)] x Percentage of wins – 1

So, after twenty trades, if the value of your average winning trade was $250, your average losing trade was $150 and 60% of your trades were winning trades, your expected returns would be 60% of your initial investments.

Expectancy = [1 + (250/150)] x 0.6 – 1

Expectancy = 2.67 x 0.6 – 1

Expectancy = 0.6 = 60%

So, for every dollar you invest, you could expect to receive an average return of $1.60.

Conclusion

Once you have a system in place, recording your trades in a trading journal will enable you to calculate your expected return over time. If your expected return is positive, you can confidently execute trades according to your system. Keeping a journal will also record whether the expectancy of that system changes over time. If it does, you will be able to determine why more easily, and will be better prepared to take advantage of the additional profits, or mitigate the additional risks.

This article was written by Jacqueline Pretty – IG Markets – CFD Trading. No representation or warranty is given as to the accuracy or completeness of the above information, consequently any person acting on it does so entirely at his or her own risk. IG Markets accepts no responsibility for any use that may be made of these comments and for any consequences that result.

Top 10 Common Myths of Singapore Healthcare

Martin Lee — Tue, 27 Dec 2011 04:43:08 +0000

As part of MOH’s efforts to help the public understand our health care system, they have published a brochure called the
10 top common myths of Singapore Health Care”. The brochure is available in four languages.

I would just like to add a few of my personal opinion to the myths which should be read in conjunction with the myths brochure.

Myth 1: I am afraid of being hospitalised because hospital bills are unaffordable

While hospital bills should remain affordable to most people in the B2 and C wards, there is now a severe lack of hospital capacity due …

S73 insurance policies in dispute

Wilfred Ling — Fri, 23 Dec 2011 12:59:40 +0000

The case “Lim Lina v Estate of Quick Cheng Gee, deceased” dated 19 Dec 2011 shows that insurance nominations made under Section 73(1) of the Conveyancing and Law of Property Act does not form part of the life assured’s estate. To me it is a straight forward case but nevertheless it was still disputed. The plaintiff had to bring it to the High Court to confirm that the insurance proceeds form a separate estate.

But what troubles me are the existing countless number of insurance nominations not made under any statutory law. For example, prior to 1 September 2009 there was no statutory law allowing insurance nomination for parents and siblings other than that under the section 45 of the Cooperative Societies Act. I am still seeing large number of clients who had not revoked such non-statutory law type of nomination.

PPF Clause in Insurance Forms

Martin Lee — Wed, 21 Dec 2011 03:20:09 +0000

Many insurers have started to include the Policy Owners Protection Scheme (PPF) clause into the product summary and contract wording of their insurance policies.

Policy Owners’ Protection Scheme

This Policy is protected under the Policy Owners’ Protection Scheme, and is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for Your Policy is automatic and no further action is required from You. For more information on the types of benefits that are coveredunder the scheme as well as the limits of coverage, where applicable, please contact Us or visit the LIA or SDIC web-sites (www.lia.org.sg orwww.sdic….

smrt suspends driver after woman’s fall

Patrick Lim — Tue, 20 Dec 2011 08:35:00 +0000

in what is a shocking but rare occurence while travelling on a bus, a woman, madam ding weibo, age 54 years old, fell and hit her head on a seat, after the smrt bus driver braked suddenly, leaving her in a coma.

this incident happened on sunday evening, after madam ding and her daughter, ms ding xiao sui, 27, had been shopping in orchard road and took bus service 167 outside the heeren shopping mall to commute back to their home at cantonment close.

after hitting her head, madam ding immediately fell unconscious and yesterday, her condition had deteriorated.

doctors told madam ding’s husband, mr you bu jia, 58, that his wife’s brain swelling had worsened despite an emergency operation on sunday night to remove part of her skull, to relieve pressure in her head.

mr you and his family who hails from the poeple’s republic of china are singapore …

hospital bed crunch looms in next few years

Patrick Lim — Thu, 08 Dec 2011 08:08:00 +0000

ms salma khalik, the health correspondent of the straits times warns of “hospital bed crunch looms in next few years”.

the recent news that our government has pushed the opening of sengkang general hospital, 2 years ahead of schedule in 2018 may be testament to the fact that our nation faces a shortage of hospital beds, even though augmented by the opening of the new ng teng fong hospital with an extra 700 beds, scheduled to take in patients from the year 2014.

current occupancy rates at public hospitals (with the exception of alexandra hospital) are hovering at or above 85% while the latest figures showed changi general hospital crossing the 95% mark on some days last maonth.

in contrast, the biggest private hospital chain, parkway pantai group comprising of mounth elizabeth, gleneagles and parkway east have average occupancy rates of 65% to 70%, although there should be an extra …

Launch of TM Legacy VIP

Martin Lee — Tue, 06 Dec 2011 04:11:55 +0000

Tokio Marine Life Insurance Singapore has launched their latest product, TM Legacy VIP, on 1st December 2011.

The difference between TM Legacy VIP and their traditional whole life plan, TM Legacy, is that TM Legacy VIP is designed to be a single premium whole life policy with high death benefit limits (S$3,000,000 for age 1-18, no limit for other ages).

It is meant to be offered as a S$ alternative to the universal life products which are usually offered in US$. However, take note that the structure of the TM Legacy VIP is still essentially a participating whole life plan, …

Insurance, Leverage, and Peace of mind.

Createwealth8888 — Sun, 04 Dec 2011 12:38:00 +0000

buying travel insurance didn’t offer peace of mind

Patrick Lim — Sun, 04 Dec 2011 04:03:00 +0000

today, there was a letter by ms yeow soo yong published in the straits times who lamented on her not so positive experience of buying chartis travel insurance, not once but twice.

the first time in may, chartis erred in the coverage which should have been international, rather than asia as she was travelling to maldives.

the second was for her trip to europe this month but the salesperson at the travel fair stated the period of coverage to be 14 days which should have rightfully been 15 days. and the story goes on and i quote ms yong:

Subsequently, a Chartis staff member called me and told me I had to top up the premium because I was to be covered for 15 days, not 14. Upset that I was inconvenienced by the insurer’s mistake again, I refused to accede and sought an explanation for the poor service.

“As …