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PolicyPal

Insurance

Fresh Graduates

Financial Planners

For someone who just graduated and entered the workforce, how should they start planning their insurance in an unbiased way, cost effective way since there are countless products out there?
PolicyPal
PolicyPal, Official Account at PolicyPal
Top Contributor

Top Contributor (Aug)

Level 7. Grand Master
Answered on 03 Aug 2020
For insurance, it will be to ensure you are well insured should there be any cases of emergencies. Thus, it is essential to find plans that are well suited for you. Ensure the basic such as hospitalisation and critical illness plans that would cover you from the hefty medical fees in the unfortunate event that you encounter a medial emergency. Some good health insurances you can consider are AXA Shield by AXA (only insurer with outpatient and PA benefits embedded into the cash rider) or the Great SupremeHealth by Great Eastern. To ensure you are well covered, you can add on riders for Critical Illnesses. Feel free to reach out to us here if you are looking for personalised and unbiased advice.

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PolicyPal

Insurance

For purchase with policypal, will another advisor be assigned should an advisor leaves?
Yes, you will be assigned to another adviser should your current one leave. In addition, our team at PolicyPal will be available to assist you anytime should you require any assistance.

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PolicyPal

Mortgage Insurance

Home Insurance

Insurance

What does "decreasing term insurance" mean? I saw this term while looking at mortgage insurance. Does anyone know?
Hi anon, Decreasing term insurance means that the coverage amount decreases over the duration of the policy. The rate of decrease depends on the interest rate used in the calculation. So a 30 year decreasing term policy may have $1million coverage if one passes away at the start of the policy, $600K at year 15, and maybe only $50K coverage at year 29. This would be in line with the outstanding mortgage amount on the property. This option is usually chosen to protect a mortgage and it can be cheaper than a level term policy. However, I often find that a level term policy is not that much more in cost compared to a decreasing term, and thus may be a viable option. For example, in the example above, a decreasing term might cost, say, $900/yr and a level term, which would give a $1 million payout no matter when it is claimed, might cost $1000/yr, which isn't really a lot more. Furthermore, if you upgrade a property say, 15 years later, a decreasing term would not have enough coverage against the mortgage already, while a level term would still protect you for $1 million.

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PolicyPal

Insurance

Is pet insurance necessary?
Pet insurance is advisable if you own a dog or cat, given the high cost of veterinary consultation and medical treatment. It is advisable to insure early as most pet insurance does not cover pre-existing conditions only covers pets under a certain age. Currently, 4 main insurers provide Pet Insurances. They are AON Happy Tails, Liberty PetCare standard plan, AIA Paw Safe, and CIMB My Paw Pal. The coverage differs across insurers thus do check the details for the individual policies. We have also done a comparison across the different policies in this article. Do feel free to check it out.

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Insurance

Personal Accident Insurance

Whole Life Insurance

Term Life Insurance

PolicyPal

Is personal accident insurance needed if I already have life insurance?
A personal accident plan is a general insurance plan that provides the policyholder with financial reimbursement and support in the event of an accident. Essentially, there is a difference in terms of coverage. While both cover death and usually TPD, life insurance's coverage is for natural causes while personal accident is for accidents. Personal accident Insurance also provides coverage for injuries or treatment incurred by an accident. Whether you need personal accident insurance is dependent on your profile. If your vocation or interest involves activities that constitute high-risk activities, personal accident policies might be something you wish to consider. Do check out this article which lists out the factors you should consider before getting a personal accident insurance.

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PolicyPal

Critical Illness (CI)

Term Life Insurance

Whole Life Insurance

Does life insurance come with critical illness coverage?
Hi anon, This would depend on what rider you add to the plan. Most whole life and term life policies are structured to cover death only. Coverage of TPD, CI and early CI is via the addition of riders to the plan. (I'm not looking at CI focused plans such as multipay) For example, you could have a term plan covering death till age 65. You'll only see the money (well, your family will see it) when you die. By adding an early CI rider, should you be diagnosed with early CI, you will now see the money and be able to use it for treatment, etc. In short, by default, no, life insurance doesn't come with CI cover. Add the riders that you need to give you what you are looking for.

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Investments

Savings Accounts

PolicyPal

Elastiq

CIMB FastSaver Account

Elastiq or CIMB fast savers? Is Elastiq guaranteed for 3 years? Can I treat Elastiq like fixed deposit?
Hello, For CIMB FastSaver, the interest rate are as follow (Based on CIMB website with a minimum balance of S$1000): Base: 0.50% (first $50k) 0.80% (next $25K) 1.50% (next $25K) For ELASTIQ, you are guaranteed 1.8% p.a. interest rate for the first 3 years. After the 90-day lock-in period, there is also the flexibility to withdraw anytime. However, do note that for withdrawal, - Amount for each withdrawal must be at least S$500 and in multiples of S$500 and - Average daily Account value for the month must be at least S$5,000 to avoid the $5 service fees - There is a 0.3% bonus credit if you do not make any withdrawals within the 3 years time frame. Disclaimer It is important to note that endowment plans are different from fixed deposits or savings accounts.

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PolicyPal

Insurance

Career

Does insurance come with retrenchment benefits?
Hi anon, There are some plans out there that come with a payout in the event of retrenchment. Note that this does not mean that the policy is meant to payout upon retrenchment, it is merely an added benefit. For example, Manulife's RetireReady Plus II has a one time payout of 40% of your premium should you be retrenched, and you can also put your premiums on hold. The main purpose of this plan however is for retirement income, and not for retrenchment benefits. Some plans also have a waiver of premiums for up to 6 months upon retrenchment, while some allow you to suspend the premiums (without interest). It all depends on the plan you are looking at, so I can only comment in general. The best form of protection against retrenchment however will always be to build secondary income sources that continue to pay you if you are not actively working. Naturally, this takes time, so in the interim, you need to make sure that you ensure sufficient liquidity with an emergency fund, spend within your means, and don't over commit to something expensive without going through the numbers first.

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PolicyPal

Travel

Insurance

Fresh Graduates

What are some insurance coverage required if I am going to study in Australia?
Depending on the school that you are studying in, some might have basic health insurance for all students. For Australia, there is a special health insurance coverage for international students called Overseas Student Health Cover (OSHC). OSHC is insurance designed to help international students cover the costs of medical and hospital care that they may need while in Australia. It might be good to consider getting travel insurance. This is especially so if you are considering traveling while you are there. They would help cover issues such as loss or damage of valuables, study interruption, and leisure activities. There are also student-specific insurances that provide coverage such as exam delay cover. Some insurers that provide these policies include Income Singapore and MSIG. Do get in touch if you are keen to find out more.

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PolicyPal

Insurance

Term Life Insurance

Is it better to rely on DPI since it is cheaper?
Direct Purchase Insurance (DPI) are term life and whole life insurance products that you can buy directly from the insurers without requiring a financial adviser. They are definitely cheaper as there is no middleman. The premium goes directly to the insurer companies, with no sales commission nor processing fees. However, there there are some factors that you should consider before buying DPI. Understanding of Product Financial advisers are there to help you make an informed decision. They possess a good knowledge of the product and a good adviser will be able to provide good recommendations and help you understand your financial situation. Thus, it is essential to ensure that you have done thorough research on the product if you opt for DPI. Claim Process The lack of a financial adviser can also complicate the claim process should disaster strike. You will be required to prepare the paperwork and liaise with the insurer directly - which might not be ideal given the situation. Sum Assured There is a limit for the Sum Assured of S$400,000 per insurer, with a sub-limit of S$200,000 for whole life DPI. You can, however, choose to buy more coverage through DPI, form another insurer (with declaration). Do get in touch with us if you require more information.

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