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Sk Tan

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Sk Tan

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Sk Tan

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Whole Life Insurance

Term Life Insurance

Insurance

Life Insurance

PolicyPal

What are the different types of Life Insurance? What are the differences between them?
Sk Tan
Sk Tan
Level 3. Wonderkid
Answered on 26 Jun 2020
Ok one final share here! Let me define some of different types of life insurance policies, that I know, for purpose of comparison, a simplified definition (idea stolen from a book): 1. Wholelife (tranditional) = protection + surrender values (participating funds) 2. Wholelife (limited pay) = wholelife with less premium payment years 3. Wholelife (multiplier) = wholelife + term 4. Term = protection 5. ILP = term + investment (your own funds/premium) Can u see the difference between Wholelife (traditional) and ILP? Wholelife gets surrender values because the premiums are put into the pool of funds owned by the insurer. The insurer needs to make sure their income and sources of funds (ie premiums received) are invested to provide returns to the company plus cushion any claims from the insured. With wholelife, the insurer promised to share some of their returns from the company's investment (ie par funds) with the customers who buy wholelife = surrender values.
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Insurance

Whole Life Insurance

Term Life Insurance

I bought a whole life policy about 20 years ago that requires premiums to be paid till age 85. Should I switch to a term or limited pay whole life policy to reduce financial burden in old age?
Sk Tan
Sk Tan
Level 3. Wonderkid
Updated on 20 Jun 2020
I also own whole life (WL) policies with premium terms to 85. U have to understand how your policy work. My WL now provides me with 4-5% compounded returns (longer than yours) and I still continue to pay premiums with the good returns, tho I dun need the insurance coverage anymore. I have the following choices: 1. Convert it to paid up, ie stop paying premiums but still enjoy same insurance coverage. 2. Convert it into an annuity plan, ie stop paying premiums but get regular payouts from it. 3. Surrender and cashout, ie terminate. I do not want to do any of the above cos the returns will be lower. So I suggest u talk to your insurer/agent what options are available for your policy. It is not worth to convert or switch to term insurance (your premiums down the drain if nothing happens).
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Investments

Retirement

Savings

My wife & I are in our mid-40s. I have just been retrenched, she could lose her job soon. Advice needed on whether we can sustain our outflow till 80. Any recommendations and potential risks we should cater to?
Sk Tan
Sk Tan
Level 3. Wonderkid
Updated on 03 Sep 2019
Before I will think of investing, I will first max out CPF as it gives guaranteed returns of 4%. You can consider topping up 2 old folks RA and MA, if not already max. RA will give them or you monthly payouts while earning 4% yearly, 5% for first 30k and 6% for first 60k. MA can help cover their and your medicals. Make sure CPF nominations are done for them with u or wife as beneficiaries. Next top up you and your wife's CPF (including MA) if not already max. Any spare cash, VC to all CPF accounts. Why top up you/wife CPF, so at 54, you can use this hack to give you max balance in SA after 55 to continue to earn 4%, interest withdrawal on demand. Hack read this http://smartinvesting18.blogspot.com/2019/06/how-to-stop-sa-to-ra-transfer-at-55.html Read some FIRE tips: http://smartinvesting18.blogspot.com/2019/06/fire-focus-on-free-activities.html Read how to get your will for free: http://smartinvesting18.blogspot.com/2019/06/write-your-will-for-free-with-ocbc.html Is your cash earning you high interest rates, eg up to 3.65% with DBS multiplier? http://smartinvesting18.blogspot.com/2019/05/dbs-multiplier-account-bigger-at-100k.html
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CPF

Lifestyle

Giveaways

SeedlyTV S1E06

(SEEDLYTV EP06 GIVEAWAY) Share your best CPF hack OR an interesting personal CPF story!?
Sk Tan
Sk Tan
Level 3. Wonderkid
Updated on 15 Jun 2019
Hack to be assured of a higher cash inflow after 55 from 4% pa interest earned on a bigger SA balance, annual interest which you can withdraw every year or let it compound and snowball into a bigger second retirement fund risk-free, apart from CPF Life! Yes you can stop CPFB from automatically transfer all your SA (except 40k) funds into RA at 55. It is legitimate. You cannot do it only if you do not know this loophole or how to hack to stop the SA transfer. Read this articel to understand and know how : https://smartinvesting18.blogspot.com/2019/06/how-to-stop-sa-to-ra-transfer-at-55.html
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Level 3. Wonderkid
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