3 Types of People Who Do Not Need Life Insurance

Many Singaporeans already have multiple life insurance policies yet are grossly under insured. Most have less than $100,000 of insurance coverage, yet have no idea that it is insufficient. But today, I would like to say that there are people who do not need life insurance ( those that pay upon death only )

Basically, you do not need life insurance if…

1) You are super rich, so rich until you no longer need to pass the risk management to an insurance company. You can self insure now. In the event of your death, all your family members will be provided for and there is no fear of any financial shortfall. Your financial assets are enough to last for 3 generations…

2) You do not have any dependents at all. No one needs to rely on you for financial support. Basically, you are on your own and you do not have any family members to take care. You may have cut off all ties with family or relatives. You may have left your hometown and no longer in contact with any next of kin.

3) You are the super irresponsible type. You don’t care whether your family will suffer or not. You think that when you are dead, you won’t see anything and won’t feel anything at all. You just hope that you won’t die when your kids are still dependent on you. You believe that all will be well in the end even though your family may suffer financially for the next 20 years.

So if you are not in one of these 3 categories, you are welcomed to talk to me and see whether you are sufficiently insured so that in the event of  your premature death, your family will be well taken care. Thanks to you.

By the way, with a stable financial future, your wife (widow) will not need to re-marry out of desparation and your children will not become some guy’s step children. Spare them the agony of an unstable and uncertain future by being a responsible husband and father now.

I look forward to meet you soon.

Please call or text me at 90011082 if what I said made sense to you.


Is Your CPF Medisave Enough To Pay For Your Hospital Bill?

If you are one of the minority of Singaporeans who does not have any medical insurance at all, due to whatever reasons, you must know what your CPF Medisave can do for you.

Please click HERE for the Medisave Withdrawal Limits.

As you can see, there are many limitations when you use your CPF Medisave to pay for your medical expenses. If you intend to get private hospital care or stay in a B1 Ward at Tan Tock Seng Hospital, then you may very likely to have to use cash to top up the difference which may cost you thousands of hard earned dollars

When you are warded in Tan Tock Seng Hospital or Singapore General Hospital, you will be visited daily by a group of trainee doctors asking many questions on your conditions. If you treasure your privacy, you may not like this to happen to you. Then you should seriously think of staying in a private hospital where you will only be visited by your personal doctor or surgeon.

In this case, you can buy a CPF approved hospitalisation insurance from one of the authorised insurance companies. I will help you choose the right one for your needs.

Feel free to call me at 90011082 for further details…

Our CPF Medishield Premiums Will Go Up From 2013

Our CPF MediShield is an individual catastrophic medical insurance designed to help Singaporeans pay part of the large hospitalisation bills for treatment of serious illnesses or prolonged hospitalisations at Class B2/C wards in restructured hospitals.

Now we are being informed by Ministry of Health that there will be major changes to the Medishield plan from next year. The changes are:

1) Premiums payable will increase between $17 to $251 a year depending on our age but majority of us aged 65 and below will see an increase of up to $5 per month. This can be offset by the government’s GST Voucher Scheme which will top up our CPF Medisave by up to $33 per month.

2) From 2013, patients can claim up to $70,000 a year, up from $50,000 a year for hospital bills.

3) Lifetime claim limits will be increased to $300,000, up from $200,000.

4) Maximum age for coverage will increase to 90, up from 85.

5) There will be inpatient psychiatric treatment claims capped at $100 per day.

6) It will cover bills for short stay wards in a hospital’s A&E department.

7) It will include congenital and neo-natal conditions, subject to public feedback. If approved, there will be an additional premium of $12 per year.

I have attached a copy of the current benefit schedule of our CPF Medishield HERE.

Read the Minitry of Health Press Release HERE.

Portable Medical Insurance For Employees

Did you know that there are 3.39 million people in our working population? An estimated 39% (1.32M) are insured under CPF Medishield while an estimated 61% (2.07M) are covered have upgraded Private Shield plans. A good 27% (900K) have company medical benefits which is a duplication of what an individual already has. (Source : MOH Website as at 19 Jan 2012)

What can we do about this duplication of medical insurance? There is definitely a big waste of resources when the medical insurance is duplicated on such a large scale.

There is nothing you can do as an individual but your company can help you and also reduce their medical benefit costs at the same time. Let’s examine what most companies are doing now.

Today’s medical benefits for employees are group medical insurance plans which are not portable (you will not be insured when you leave the company, whether upon resignation, retrenchement or retirement), there are sub limits in the benefits, there are policy age limits, Ward benefit is mostly based on entitlement, premiums may increase when there are high claims experience as these group plans are on yearly renewable term.

The solution to this problem comes from an insurance company that is able to ride on an individual’s Enhanced Medishield plan with “As Charged” benefits, unlimited lifetime cover, guaranteed renewal, flexibility of Ward choices, eliminate duplication of insurance and a “paperless & seamless” claim process.

Funding for this medical plan depends on the company’s HR budget. It can come from their present budget and even reduce the cost of insurance if done properly. Companies can manage their future medical costs as this plan is more stable and the loss from claims are spread over a larger pool of insured people. HR people will be freed from doing the claims process and there is an additional tax deduction with this portable medical scheme.

If your company has a staff strength of more than 3, feel free to contact me for a discussion on how you can make this change and save money for the company.

I look forward to your call soon. (My mobile number is 90011082)


Buy Term Insurance & Invest The Rest?

Some people believe that buying term insurance is the only way to go. Then they will invest the rest in other financial assets. They believe that buying term insurance is the cheapest way to achieve their wealth protection needs. They may be right but it also depends on other unforeseen factors like…

Term insurance has a maturity date. If you need to prolong the protection, you may be put off by the high premiums at the older age. You may not be able to renew a new term as the policy may not have a renewal clause.

You may need a short term loan but because a term insurance plan does not have cash value, you cannot take a loan from your policy unlike an endowment plan or a whole life policy.

A term plan is not flexible, you cannot increase or decrease the level of protection when your circumstances change. An Investment Linked Policy (ILP) will be able to do that.

A term plan may not have total & permanent disability (TPD)  claim and you have to pay more premiums to add in TPD. After add TPD, you may want to consider getting an ILP.

As an independent financial advisor, I advise you to sit down with me to discuss what you really need before you decide whether a term plan is the final answer to your needs.

Another alternative is buying a group term insurance plan which is cheaper than a personal term insurance but you must remain with that organisation as long as the term coverage period or else you may not be able to renew it once you leave that organisation.

Insurance That Pays You $300 Per Day For Staying In A Hospital!

“What? $300 a day? So good? No way!” You may ask.

Yes, it is true. My colleague told me that her client had cancer and was warded for more than a month. Not only was that person’s hospital medical expenses reimbursed by the insurance company, he got paid $300 a day too! That’s $9000 a month!

It is not that we look forward to getting sick but the thought of being paid $300 a day does provide peace of mind to that person. The prospect of losing his job is very real and with the extra money in his pocket, he can rest easier.

At the same time, I would suggest that he should have a critical illness plan that pays a lump sum of money to help him through at least 5 years without any financial worries.

Please feel free to contact me if you do not any independent financial advisor representative serving you.



Have You Reviewed Your Insurance Portfolio?

Many of us have bought our life insurance policies 5, 10, 15 or even 20 years ago. We would have forgotten what we have bought and quite ignorant of what we have bought over the years. In an unfortunate event of a sudden death or injury where you are unable to communicate with your loved ones, will they know where to find your insurance policies and do they know what to do with them when they find the policy documents? Do they need to read all the documents just to know what it is all about?

Just imagine all the stress and anxiety your family members have to go through just to get through the pile of insurance documents.

Remove this fear and anxiety once and for all. Engage an independent financial adviser representative to review your insurance portfolio and have an insurance summary done up and put all your documents in ONE folder in a systematic order. This way, anyone who takes out this folder will be able to see how much the insurance payout will be immediately. The contact numbers of all the insurance advisers must be clearly visible so that they can be contacted immediately. Always update the contact list should your insurance adviser leaves the industry.

Appointing a trusted independent financial advisor rep as the main contact person will relieve your family of the hassle of getting the claims done professionally and promptly.

Reviewing your insurance portfolio regulary will show up any loop holes in your plans as you progress higher financially or you have a new member in your family. A financial plan is a process not an end product. You may even terminate some insurance plans which have become redundant or become too expensive to keep.

So pick up the telephone and call your independent financial adviser rep to review your insurance portfolio now.

What is the difference between “Waiting Period” and “Survival Period” ?

In your life insurance policy documents, you may have noticed these two phrases “waiting period’ and “survival period”. But do you know what it means and what are the implications if you do not meet the criteria set by the insurance companies?

Let’s take a closer look…

Waiting Period – Normally you will find that there is a waiting period of 90 days before you can claim from the insurance companies upon diagnosis of a critical illness. 90 days from what, you may ask? 90 days from the commencement date of your policy or date of reinstatement of your policy.

Commencement date is simple enough, it is the date that the insurance company starts to cover your life after their underwriting department gives the go-ahead. It may be the 1st day of a month or it can be a date that the insurance company decides.

Date of reinstatement happens when you make good the premiums that you have forgotten to pay when it was due, or you did not have the funds to pay the premium. Normally you have 30 days grace to pay your premium. After 30 days, your policy will lapse. To re-instate it, you have to back pay the premiums owed. Once it is paid, your policy will be re-instated. BUT…be careful here…

Your waiting period of 90 days for the critical illnesses start all over again after the reinstatement date! Should you be diagnosed with a critical illness, you will NOT be able to claim from the insurance company! You can appeal but you’d better pray the CEO is in a good mood.

So remember to pay your premiums, use GIRO if possible, so you will never forget. And yes, do make sure you have sufficient funds in your bank account please. especially if you are going to be posted overseas for a long period of time.

Survival period if different. Normally you will see “survival period” of 30 days upon diagnosis of a critical illness is needed before the insurance company will pay. If the person dies within 30 days, the insurance company will only pay the death benefit but not the critical illness benefit.

So what, you may ask? That person is going to die anyway…

A BIG difference, if the policy pays both upon diagnosis of a critical illness AND another payment upon the death of that person. Nowadays, I see alot of insurance companies have this kind of policies.

If you are not sure what you have, I suggest you review your life insurance policies with an independent financial adviser rep soon. Be sure or you may encounter a rude shock one day…

Travelling Soon? Get Your Travel Insurance for 25% Less Here!

If you are travelling soon, please remember to buy your travel insurance. I have heard many stories of how people lost a lot of hard earned money after they fell sick, got robbed, got picked pocketed, lost bagage, flight delays and even dying overseas…

More details here – MSIG TravelEasy Promotion ends 31 Jan 2012. Please contact me if you are interested.Tel: 90011082 The brochure is attached MSIG TravelEasybrochure