Child's first insurance policy

[diymummy]

I see.. I understand now.

I know this is a bit sensitive but may I know for both plans like this how much premium are you paying a month? It's ok if you feel it's too sensitve to reveal. Just wanna have a feel of what the commitment is like.

Do you know if it's possible to convert a continuous payment to a limited payment?

 

[shiyi]

if wan more coverage shd get a term plan n a wholelife plan together

 

[jiaqing]

I see.. I understand now.

I know this is a bit sensitive but may I know for both plans like this how much premium are you paying a month? It's ok if you feel it's too sensitve to reveal. Just wanna have a feel of what the commitment is like.

Do you know if it's possible to convert a continuous payment to a limited payment?

My whole life limited payment (20yrs) : Cover Death $100,000, Critical Illness $80,000, Accidental Death $100,000. I paid abt $250.00

Plus my own Personal accider, hospitalisation rider plan: $300 mthly.

I do not have a whole life plan continuous payment. But i have intention to buy a ILP plan.

 

[mummymag]

My whole life limited payment (20yrs) : Cover Death $100,000, Critical Illness $80,000, Accidental Death $100,000. I paid about $250.00

Plus my own Personal accider, hospitalisation rider plan: $300 monthly.

I do not have a whole life plan continuous payment. But i have intention to buy a ILP plan.

Maybe you can consider a good medical insurance that allows you to use MediSave to pay the premium instead of having a hospitalisation rider? That will save you money. (From my IFA's TIP)

Why ILP? Have you compare this with a plan such as (term insurance + unit trust investment)? Advisers love to sell ILP as the commission is higher. But customer like us are stuck with only a few options to invest. What happen if we can't afford the premium for ILP in future? (From my IFA's TIP again)

my IFA's contact: Vincent, 9232 1950 (in case someone ask)

Good day to all ancing_wub:

 

[mummymag]

Stonston, is your financial adviser an independent one?

Because for eg, my agent is from Pru so he only discusses the different options that Pru has. My ex-agent is an independent one but she resigned. She cannot offer me products from the big 4 agencies, ie Pru, GE, AIA and NTUC. But she offers me and does a comparison for me with other companies offering insurance eg HSBC, AXA.

So far I've not be able to find an agent which is from a big 4 and does a comparison for me with all the big 4 companies.

My IFA shared that no IFA can represent all big 4 companies at this moment for all their products. But my IFA can help me to do the comparison if I can provide him the benefit illustration (BI) from other companies. You may collect the BI from various companies and let a good FA to help you.


For medical insurance, my IFA walk me thru all these insurance companies namely AIA, Aviva, NTUC, GE and Prudential. He represents all except GE and Pru but his detailed analysis helps me to understand what are available in Singapore. His systematic approach help my family to get the products that meets each family member's needs. In the end, we got AIA medical insurance for the children while the adults got NTUC. Why different? Hee Hee because of premium consideration and features consideration. This year I will switch to AIA because going to plan for a baby for next year.

 

[jiaqing]

Maybe you can consider a good medical insurance that allows you to use MediSave to pay the premium instead of having a hospitalisation rider? That will save you money. (From my IFA's TIP)

Why ILP? Have you compare this with a plan such as (term insurance + unit trust investment)? Advisers love to sell ILP as the commission is higher. But customer like us are stuck with only a few options to invest. What happen if we can't afford the premium for ILP in future? (From my IFA's TIP again)

my IFA's contact: Vincent, 9232 1950 (in case someone ask)

Good day to all ancing_wub:

Based on my own research: I already have a good medical aka hospitalisation plan that pay via Medisave, my hospitalisation rider plan aka medical rider plan is to cover the deductible and co-insurance. :001_302:

Based on my preference: I dont like term plans. NO returns. I agree that it is a small amount of $.

I done my research. ILP is still my choice.

 

[JoyBliss]

If NOTHING happen to me when i reach 65 (I plan to retire at age 65).
I can choose to surrender that whole life plan continuous payment, since I had make payment for almost 44yrs (65-21=44). I shld have some returns. So that I can use it for retirement.
After I surrender, I dont need to worry about coverage as I still have 1 whole life plan limited payment that cover me for life.


So you can use 1 for retirement plan and 1 for protection plan for life.

Hi Jiajing,
Thanks for sharing. How is the above diff. from buying a higher coverage (say $100K instead of $50K) limited payment period and a retirement plan?

 

[mummymag]

Based on my own research: I already have a good medical aka hospitalisation plan that pay via Medisave, my hospitalisation rider plan aka medical rider plan is to cover the deductible and co-insurance. :001_302:

Based on my preference: I dont like term plans. NO returns. I agree that it is a small amount of $.

I done my research. ILP is still my choice.

Mind to share your research/thoughts on ILP?


Here is mine:
ILP takes part of our money for insurance and part for investment. When we are older say above age 50, all the premium may goes to insurance. If not enough then part of our investment will be sold to pay for insurance premium. As we are older we should accumulate more for our retirement needs since our dependents are no longer depending on us. But why ILP put insurance in priority? Does your ILP have more than 300 funds to invest in? Because as we buy term, we can save much to invest in various unit trusts for our retirement needs.

 

[mummymag]

Hi Jiajing,
Thanks for sharing. How is the above diff. from buying a higher coverage (say $100K instead of $50K) limited payment period and a retirement plan?

Hi JoyBliss,

My IFA has explained to me about how to compare limited payment and whole life plan. It is very complex for me to remember but it is very clear to me when he explained to me previously. You may like to contact him personally at 9232 1950, Vincent, to get him to explain personally.

He is a non-pushy and friendly person thus you will feel comfortable to discuss with him.

 

[jiaqing]

Hi Jiajing,
Thanks for sharing. How is the above diff. from buying a higher coverage (say $100K instead of $50K) limited payment period and a retirement plan?

Hi Joybliss,

The premium will be diff. Limited payment period plan will be more expensive.
But what are your concern?

 

[jiaqing]

Mind to share your research/thoughts on ILP?


Here is mine:
ILP takes part of our money for insurance and part for investment. When we are older say above age 50, all the premium may goes to insurance. If not enough then part of our investment will be sold to pay for insurance premium. As we are older we should accumulate more for our retirement needs since our dependents are no longer depending on us. But why ILP put insurance in priority? Does your ILP have more than 300 funds to invest in? Because as we buy term, we can save much to invest in various unit trusts for our retirement needs.

Im not that into investment. Ask me to go thru all 300 unit trust is too much for me.

If I go for ILP, coz I want protection first then investments returns. Consider long term investment. Med to high risk.

If I go for term plan and investment, coz I want protection at the same time investment returns. Consider short term investment. High risk.

So ILP is more suitable for me.

Common bad pt on ILP is when you grow old the premium paid may not enough to pay for insurance charges then part of our investment will be sold.

But that is only going to happen when I reach 50 or above, then now is the best time to buy le lo. Cause I got 20yrs then I will reach 50, by then I am able to choose the right time to surrender my ILP and returns will be just nice for my retirement.

 

[shiyi]

yest a pru agent told us that theres an illp whereby we invest 100/mth in the unittrusts and by 24th yr can get back 120k.. rly got such good thing meh?

 

[jean1986]

yest a pru agent told us that theres an illp whereby we invest 100/month in the unittrusts and by 24th yr can get back 120k.. rly got such good thing meh?

the returns r projected n not guaranteed. the POTENTIAL to get back Tt Amy on a ILP is higher than a normal plan. u gotta put on for long term n also let ur advisor know ur risk profile n a gd advisor will monitor the funds for u such that u have a well managed portfolio.

 

[jiaqing]

the returns r projected n not guaranteed. the POTENTIAL to get back that Amy on a ILP is higher than a normal plan. you gotta put on for long term n also let your advisor know your risk profile n a good advisor will monitor the funds for you such that you have a well managed portfolio.

Correct, returns are NOT guaranteed.

"we invest 100/month in the unittrusts and by 24th yr can get back 120k"

$100/mth is the min premium for a ILP plan.
That 120K return can come true. BUT may not be on the 24th yr. It can happen at 20th yr, 25th yr, 26th yr, 28th yr or even at 30th yr.
Question are Can you wait till the return become 120K??
What is your risk profile? Low, med or high?
Do you have a trustable agent to look aft your ILP?

Normal plan like whole life plan, there is a guaranteed surrender value. If you notice, the guaranteed surrender value is lower than the total premium paid.
We need to see what is the NON guaranteed surrender value.
Based on guaranteed + NON guaranteed surrender value, a normal plan will take 20yrs to break even.

So if you are a low risk, take normal plan.
If you are med - high risk, can consider ILP. Just need to ask more questions before you decide.

 

[Ting]

omg, getting more n more confusing~

 

[jiaqing]

omg, getting more n more confusing~

Dont confuse. Confuse ask. Ask till you understand. :001_302:

 

[jean1986]

ya just ask.meet up with ur financial adviser to get more info.. it's non obligatory anyway..my friends like to meet up with other agents then compare with mine n choose what suits them the most.

 

[mummymag]

Dont confuse. Confuse ask. Ask till you understand. :001_302:

I like that "Confuse ask. Ask till you understand." Well said Jiaqing!

That's how I learnt by asking silly questions to my IFA. I do learn alot from him, I must say.

 

[JoyBliss]

Hi Joybliss,

The premium will be diff. Limited payment period plan will be more expensive.
But what are your concern?

For self, I thot it's essential to have 1 life policy, and if any extra (after medical, hosp etc) perhaps to consider retirement plan. But to hold 2 life policies (limited & whole), versus life+retirement policy, is the prior option a much lighter comittment? I'm interested in stretching the $$$ coverage with the same resource and like to find out more here

Thanks in advance jiaqing

 

[jiaqing]

For self, I thot it's essential to have 1 life policy, and if any extra (after medical, hospital etc) perhaps to consider retirement plan. But to hold 2 life policies (limited & whole), versus life+retirement policy, is the prior option a much lighter comittment? I'm interested in stretching the $$$ coverage with the same resource and like to find out more here

Thanks in advance jiaqing

Life Policy = Whole Life Policy
Life Policy have 02 type of payment. Limited Payment n Continuous Payment.

01 life policy is essential. Any extra life policy will be for your retirement. But a saving plan also can be your retirement funds. So ask yourself, is coverage more important now or retirement fund or BOTH?

So for me, I chosen a life policy (limited payment) for my life aka protection plan. As for retirement, I chosen ILP plan.
ILP suit me best is because, to have another life policy (continuous payment), even there is a guaranteed surrender value, I still find ILP's NON guaranteed surrender value more attractive.
Life policy (limited payment) + ILP, I can have a higher/better coverage and is within my budget.
Total estimate $ needed is $450 for all my policies (life + ILP + PA + Hospital).

Maybe end of this year or early next yr, I will look into saving plan which come with annual cash out.

You can also choose 1 life policy (limited payment) for your life aka protection plan. As for retirement, you can choose life policy (continuous payment), Savings plans or ILP.