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Insurance

Early Critical Illness (ECI)

Critical Illness (CI)

AIA

AIA power critical vs AIA guarantee protect plus with early critical protector life for early critical illness and critical illness?
Hey there! It really depends on your objectives. If you are looking purely for critical illness coverage, then AIA Power Critical Cover will be it. You can complement it with a simple term plan eg. AIA Flexi Term to cover for death and TPD. The key thing is none of the payouts will "eat" into each other since they are separate plans. Do note however that you will have to keep paying them to keep in force. Whole life plans eg. AIA Guaranteed Protect Plus (with CI rider) offers a 3-in-1 coverage for death, TPD and CI. The key thing here is they offer limited payment (eg. pay 12 years, covered for life) and has a cash value to offset your premiums paid (will take proxy 20 years to break even) and the cash value complements your retirement too. It is pricier in comparison with getting a term plan+CI standalone plan. Note also that for WL plans, the CI rider is typically Accelerating by default, ie. it accelerates your death payment upon CI diagnosis leaving you with no death benefit (but do read the T&Cs). Its often not an either-or but which to adopt first. Either way, you need the whole life coverage and you need the high cheap coverage that a term plan can afford. So you need to look at your budget. If you have the budget, go ahead and get the whole life plan but people in general may not have the budget because of big ticketed items eg wedding so you have to evaluate your budget. You shouldnt be spending more than 10% of your annual income on insurance. Financial planning is an integral part of life. You can reach me here to find out more.

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MSIG MotorMax Car Insurance

Insurance

What are some of the commonly used sites to get insurance quotes?
N
Nathaniel
Level 6. Master
Answered 1d ago
Here's a compilation of the various insurance online platforms in Singapore, segmented by types of insurance for convenience: 1. Personal car insurance: FWD, DirectAsia, BudgetDirect, Etiqa, NTUC, GoBear, Moneysmart 2. Travel insurance: FWD, NTUC, AXA, GoBear 3. Life insurance (and other covers like Critical Illness): Singlife, FWD, PolicyPal, Finitude 4. Business insurance: Provide Hope this helps you to find what you need :)

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Insurance

Investments

Robo-Advisors

A financial advisor offered a investment plan which has 66% welcome bonus on my initial investment and covers me 101% of the amount if I pass away.. is this worth it?
D
Deedee
Level 5. Genius
Answered 23h ago
To be very honest, I am tempted too, even up till now. There are plans with up to 200% bonus (highest I've seen). Human connection > robo anytime. Somemore "Free" money leh. Boost your gains if markets going up or cushions your losses if the reverse happens. In terms of fees, are you sure the only fees you are paying is this 2.5%? Whatever funds you choose to invest in, they have their own fees which anyone who buys into will have to pay for. So on this, you are already losing out to those who buy directly through their brokers. Did you check for Any other admin/ maintenance fee? You also need to be aware that these fees also compounds. Any withdrawal/ top up fees? Premium holiday will still deduct fees from your accumulated units to maintain your account. However, if you really think about it, when you invest, the plan is to buy into something (stocks, bonds, ETFs etc), hold long term for compound interest to work. For ILPs, the break even year is ~year 15, and that's on assumption an 8% p.a. returns on your investments, after accounting for all the fees, you haven't even profit! If you want to profit, you need to hold onto your plan even longer. By then, will your agent still be around to continue servicing you, to advise to switch to another fund, if required? You still need to do your own research. After spending time looking at the suggested options from your advisor, Are you just going to agree with your agent? If you lose money, are you going to then blame your agent or take accountability for your choice? Remember, past performance do not guarantee future performance. Markets move up and down. Fees are guaranteed whether or not your investments gain or lose. If your units are insufficient to pay for these fees, your account will automatically close and you essentially have lost all your investments (I think. Pls check) Actually what really stopped me from buying the ILP from my agent is because one only contacts me when there are promos for insurance to buy but did not really explain in depth the policies hence I always end up canceling it but I can't lose contact because my health insurance is there lol. My other agent actually told me there are cheaper options out there so ILP is really for those who are able to service and hold onto the plan long term but likewise, she is unable to guarantee returns although she kept saying is possible. But anything is possible right? :) So I looked into robos as their fees are smaller, smaller minimum amount, and no lock in period. This gives me time to do my research and eventually deciding on passively investing in ETFs aside from my robos (but disclaimer, I haven't started on ETFs yet haha) Anyway recently there are other questions by others in Seedly regarding ILPs. Do read through their replies (from agents themselves and other folks like me :)) before committing to this ILP. All the best in your decision!

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Early Critical Illness (ECI)

Insurance

When comparing aviva term plan with, 100k ECI OR 100k Multipay, it seems like it's cheaper to get multipay. But why is it so?
Hi anon, Are you referring to Aviva's MyProtector Term plan with the early CI rider? If this is the case, this early CI rider is an additional rider. Thus, any payout from this rider would still leave you with $100K to claim in the event of death. Theoretically you could claim $200K (from early CI and death) Whereas Aviva's Multipay pays very minimal benefits in the event of death. We also need to understand that the chance of recurrent CI is low (although not zero), so it is possible that you may not claim a second time before the plan ends. (You might claim $100K, for example, and then pass on, receving the death benefit of $5K. The total payout is lesser in this case.) Ultimately it does depend on your current age as well as how long you intend to get the cover till, since the premiums are priced based on mortality.

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Insurance

Whole Life Insurance

If I have decided on a particular insurance policy I want, would it be better if I engage the insurer's agent or an independent one?
J
Just_Saying
Level 4. Prodigy
Answered 2d ago
I believe that there is no definite answer on which is a better one. But i would prefer an independent one that looks into more insurance products in the market, as this will be effective for my subsequent reviews when i need to adjust my coverage. Also, I tend to look for agents that has been in the insurance industry for at least 5 years, because i personally think that the probability of an experience agent staying in the industry throughout my period of service is higher. But this is just my assumptions, and it might not be true of course.

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AMA The Woke Salaryman

Insurance

Investments

Life Insurance

Are there financial planners/advisors that charge a consultation fee for assessing and organizing your finances to fit your best interests? Instead of taking a commission off the financial product?
Hi anon, If you are looking for a fee based advisor, there are such advisors out there, who won't advice until you pay for their service. Likewise, there are also advisors who don't charge a fee but will give you advice based on your situation. You are of course not required to get anything from them. No model is perfect. So it's more important to find an advisor whom you can work with, and also with some basic understanding of financial planning, you will be able to tell if the advice makes sense or not, and if it suits your interests.

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Insurance

Life Insurance

Whole Life Insurance

Insurance: is there any concentration risk if I buy all my whole life insurance for myself and dependents (children) with the same insurance company?
Hi anon, The protection is based on sum assured/surrender value per life assured per insurer . Thus if you have $500K under insurer A and your baby has $500K sum assured as well, there won't be any issues as the caps apply to the individual and not collectively.

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Investment Linked Policies (ILP)

NTUC Income Life Insurance

Insurance

Have been advised to get NTUC Income Growthlink ILP invest in Asian Income Fund, is this a good investment, any advise or comments please. Thanks.?
Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Updated 1d ago
Not a good idea #1 these ILP products are hybrid life insurance plus investment products. this is alway complex, intransparent and there remains a (small?) default risk of the insurance company or at least shortages of the initially calcuated theoretical yield. because of the complexity they are intrinsic investing underperformers #2 look at this price chart of the mentioned fund (or the over 3 years annual performance of only 0.5% !, where inflation eats up more than these returns on net calculation): ! caveat emptor. what also to avoid: https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy and be careful with finance advisors of banks or insurance companies, they have a lot of conflicts of interest (pressure from the superiors, incentives to sell, provisions).
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Insurance

Investment Linked Policies (ILP)

Manulife Life Insurance

Whole Life Insurance

ManuInvest Duo (20 years): Too good to be true? Allows for unlimited fund switching, fund rebalancing, premium redirection, with supplementary Critical Care Plus Rider (I).?
D
Deedee
Level 5. Genius
Answered 3d ago
Hi anon, I'm not a licensed financial advisor but just sharing my thoughts below. Please read through and do a proper research before committing to any plan(s). If I'm not wrong, most ILPs allow for unlimited fund switching so that shouldn't be your consideration to take up an ILP. Anyway, critical care sounds like a CI rider. If so, please take either one of the options below to cover yourself instead: a) Limited Pay whole life plans with fully accelerated CI rider. If multipliers are available, make full use of it so sum assured $60k with multiplier x5 would give you $300k cover till age 70 and $60k + accumulated bonuses (which helps to account for inflation) thereafter. Note that life plan should not be considered as a savings plan. b) Add on ECI rider to your base life plan if you find it important to cover ~2 years of income while you seek treatment for early recovery. c) Term Plan with accelerated CI and/or ECI rider. Note that this gives pure protection so no cash value and you pay for as long as your term lasts. A suggested age is usually 65-70 as by then your dependents (eg children) should be able to support themselves already and your loans (eg house) should have been paid for already. If you want to terminate can just let your policy lapse and should auto terminate (I think). But once you terminate, you would no longer have CI / ECI cover and what's worrisome is that you may (touch wood) contract any of the illnesses at old age. Which probably by then you may have downgraded your hospitalization plan? d) Some insurers have multipay options eg Aviva Multipay IV, PruTriple Protect, AIA Power Critical Cover, which covers CI occurrences multiple times with a 1-2 years gap I between each and some even covers ECI. If you have dependents, can consider getting an additional term plan with no CI / ECI rider to cover for death/TPD to cover liabilities plus support your loved ones few years while they recover and find another source of income for the family. In terms of investment, look towards ETFs for diversification across companies / countries etc. Or you could start with robos while figuring out how to invest as although robos also have fees (usually less than 1% pls check) some do not have minimum investment amount and most do not have lock in periods. You could always not contribute to your account if your finances become tight that month or anytime increase / decrease your contribution with no fees for some. The ILP may have premium holiday period, which may be worse for your account as you are not contributing any premiums but their monthly / yearly charge will eat into your returns faster than it grew over the years. Always always always do your own due diligence before starting out any investment. If you want to lock your money up in investment, might as well direct your funds to your CPF MA / SA which gives you guaranteed 4% interest. But MA allows you to pay for medical insurance and bills.

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SeedlySOS

Hospitalisation Insurance (H&S)

Insurance

Hi! Will my hospitalisation insurance cover the medical bills in the event of cancer? If so, would it be alright to forgo a potential lump sum payout by not paying for a dedicated cancer plan?
Generally, your integrated shield plans should provide coverage for your treatment, hospitalisation expenses, and pre and post-hospitalisation benefits (up to a certain number of days) in the event of a cancer diagnosis. The purpose of critical illness insurance (or in your case, a dedicated cancer plan) is to cover your potential loss of income in the event you are diagnosed with the covered critical illness. This lump sum payout gives you the freedom to stop work and seek medical treatment with fewer worries about how to support your family or repay your debts. You can find out about your recommended coverage by checking out our lifestage quiz.

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