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Li Yu

Financial Services Consultant at Manulife Financial Advisors

Li Yu

Financial Services Consultant at Manulife Financial Advisors

5Upvotes

About

Financial Services Consultant at Manulife Financial Advisors

Credentials

Financial Services Consultant at Manulife Financial Advisors

Psychology at National University Of Singapore

Li Yu

Financial Services Consultant at Manulife Financial Advisors

5Upvotes
  • Answers (7)
  • Questions (0)
  • Reviews (0)

Insurance

I was an AXA agent before (now with another insurance company). Truth be told, when I was in AXA I never really recommended pulsar to any of my clients/friends becos the fees are really quite high. Pulsar is attractive becos it gives very high start-up bonus. Other ILPs in the market do not have such high start-up bonuses, but also charge much lower fees. So if you are looking at long-term capital growth, Pulsar should not be the plan to go to. Pulsar is only competitive if flexibility (in terms of withdrawal) is of great importance to you. An alternative to surrendering the plan might be to use your account value to sustain itself. By that, I mean to withdraw money from your pulsar account (cos partial withdrawal is free of charge) and put back as premium, so you don't have to take out additional money from your pocket. For that to work, you have to have sufficient fund in your account. The policy started in 2014 might be able to do so. For the 2016 plan, you still need to continue paying new premium for at least 2-3 years. Meanwhile, try to do a portfolio review with your AXA consultant or any other trusted consultant. If the return of your funds are only beating the fees, then they are not really performing well. You should consider switching to other funds.

Investments

Savings

Insurance

Bank Account

I agree with Hariz. There's no definite answer. It mostly depends on your own satisfactory level. Adding on to that, risk ususally increases with potential investment return. We can't look at return alone and disregard the underlying risk. What you want in the end is an investment that gives you as close to your satisfactory return as possible at a risk level that you can tolerate.

Insurance

It really depends on what kind of coverage you are looking at. Normally I would recommend 10-20 percent of your annual income for insurance protection plans. Anything more than 20 percent need to be considered very carefully. Either your policy is too expensive or you are getting something that you don't necessarily need. There are also savings/investment plans. Though they are also provided by insurance companies, they are more for wealth accumulation than protection purpose, so I won't include them in the 10-20 percent limit. How much to put into these kinds of plans depends on how suitable these plans are for you and how liquid you want your asset to be.

Insurance

Term Life Insurance

Early Critical Illness (ECI)

Assuming the policies offer the same coverage for the same premium, always get from an insurance company. This is becos there will be someone servicing you if you get from insurance company, but not from the bank. Of course there is likelihood that your insurance agent is irresponsible or he/she may leave the company, but at least you still get higher chance of being serviced after purchaing the plan.

Investments

Insurance

Insurance protection comes first. You don't want to be forced to cash out your investment when something bad happens becos you never do proper protection first.

Insurance

Savings

If you are already cash tight with a term plan, don't need to think about whole life becos it's gonna be much more expensive for the same amount of coverage. I'm not sure till what age you are covered by this term plan, but the sum assured looks quite decent for a 25-year-old.

Insurance

Li Yu
Li Yu
Level 3. Wonderkid
Answered on 27 Apr 2019
You should consider getting yourself a hospitalisation plan and a personal accident plan. Illnesses and accidents don't spare you just because you are still studying. If you have some decent income, be it through doing part-time or internship, you might consider getting a life and critical illness plan as well. By 'decent', I mean you have a stable income of at least roughly $200 per month. Buying life and CI plans during uni makes sense becos the premiums are much cheaper when you are young. It is a good investment for your long term, if you can afford it. I advise against buying savings plans while you are still studying. Some financial advisors like to approach students with savings plans as the higher return versus saving in the bank sounds attractive. But you should always build your protection first before considering savings/investment, unless your parents have already done comprehensive insurance protection for you.
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