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PolicyPal

Insurance

Can I get Insurance for my Pet?
Yes, you can! Currently, there are 4 main insurers in Singapore that provide Pet Insurance plans for dogs and cats. They are - Paw Safe (AIA Insurance) - PetCare (Liberty Insurance) - HappyTails (AON Insurance) - My Paw Pal (CIMB Bank) We have conducted a detailed comparison across the different policy here. Do check it out!
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PolicyPal

Insurance

AXA SmartPersonal Accident

Will an individual be able to make claim under the Personal Accident plan if he or she is injured while playing an extreme sport?
This is dependent on the capacity in which you engage the sport. A standard Personal Accident plan typically does not cover injuries sustained from sports that are played in a competitive capacity and extreme sports such as cliff jumping or big waves surfing. However, if it is played as a past time or leisure, they can be covered under the Personal Accident Plan. To find out more, do check out here
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PolicyPal

Critical Illness (CI)

Life Insurance

Health Insurance

Insurance

Does Critical Illness Plan cover Diabetes?
Generally, Diabetes is not one of the standard 37 medical conditions on Life Insurance Association Singapore's framework. Accordingly, it is usually not covered in most critical illness plans. Despite that, there are some plans that cover Diabetes in certain situation. Examples of such plans include AIA Diabetes Care, AIA Power Critical Cover. For this purpose, you may wish to research further, or to seek professional advice. I share quality content on estate planning and financial planning here.
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Insurance

Life Insurance

Term Life Insurance

Critical Illness (CI)

PolicyPal

Should I get life insurance or critical illness insurance first, then add on the other after, or get both insurances together? I'm looking at term till 65 or 70 yo. What is a good sum assured? Any policy recommendations?
Hi anon, I'm going to work on the assumption that you have hospitalization coverage already. If not, that should be the priority. You will then need to protect yourself and your income. This is where critical illness insurance comes in. This provides a sum of money for you to cover your expenses and other out of pocket costs should you fall critically ill and are not able to work. I usually recommend to cover at least 5 years of expenses and an additional sum to cover your out of pocket. This is usually via a limited payment life plan, or a term plan, depending on your budget/needs. Based on the information you provided, you need to get at least around $150K CI cover. If you want early CI cover, a limited payment life plan with a multiplier should be cheaper than a term till 65/70 with the added benefit that your coverage still remains after 70. I won't be giving any recommendations here, but I can say that you can speak to an independent financial advisor to get an idea of which insurers provide such plans as well as their features and cost. This will aid you in making a decision. Next, for death/TPD cover, you'll also need this to provide a lump sum of money should something happen to you. For the coverage amount, you could use a multiple such as 10 x of your current income, or calculate based on your current liabilities (how long you think you need to support your parents for times how much you need). This is most cost effective on a term plan. If we use 10 x annual income, you will need around $350K, but it is not that much more expensive to get $500K as there is a discount if you get a larger sum assured. However if you calculate based on liabilities, the amount could be more. It really depends, and I'd suggest you sit down and work things out with an advisor (and also to get quotes). As for the recommendations, term plans are pretty straight forward and practically similar, so the cheapest plan would be the best. I'd recommend you get both together. It's very possible to cover hospitalization, CI and death/TPD with less than 10% of your income, especially more so now that you are young.
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PolicyPal

Investment Linked Policies (ILP)

Insurance

Life Insurance

Term Life Insurance

Whole Life Insurance

Should I withdraw from my great eastern ILP and purchase a term/whole life insurance product instead?
PolicyPal
PolicyPal
Top Contributor

Top Contributor (Jun)

Level 5. Genius
Updated 3w ago
Generally, it is dependent on the purpose behind why you purchase the policies. Investment-Linked Policy normally a life insurance plan that constitutes an investment component. Thus, if you are simply seeking coverage, it might be good to withdraw. However, if your policy has been providing a good return on investment, you might want to continue with it. If you are considering between Life and Term Policy, do check out this article. If you would like to find out more, do reach out to us and we will follow up with you.
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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?
Hi anon, Term Life - Covers you for a specific duration (I.e. the term) - Coverage ends after that - No cash value, but may have a surrender value sometimes after a certain period - Cost efficient to cover death/TPD - Premiums are generally payable for the entire duration of the plan Whole Life - Covers you for whole of life (age 99/100/life) - If you reach the end of the period, policy matures - Premiums used to be payable till 85 or so, nowadays they are payable for a limit number of years only (20-25 years) - Has cash value/bonuses - Able to take policy loan if you are unble to pay the premium (after policy acquires cash value) Over the years, premiums have come down quite a bit for both type of plans. You will usually want to look at your needs first, before deciding if a term plan or a whole life plan will be a better fit in terms of coverage, features, total cost, etc. It really depends on what you want to cover.
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PolicyPal

ValueChampion

Investments

Insurance

Whole Life Insurance

Term Life Insurance

I am in my mid 40s. I have life insurance 60k, term insurance 100k and Enhanced medishield. I have 800 to spare each month. Should I invest or buy more policies?
Hi anon, Rather than look at it as your coverage for term and life insurance, I would instead look at it as such: - Death/TPD coverage: Do I need it? If I don't have dependents or liabilities, then probably not. If I do, how much cover will I need? How much more do I need to cover the gap? Rules of thumb usually peg the amount of cover at 10 times annual income, or the amount needed to cancel your liabilities and provide for your dependents, whichever is higher. - Critical Illness: I'll need this. How much do I have now? Is it enough, keeping in mind the rules of thumb for the amount of coverage. If not, how much more do I need to ensure a peace of mind in the event I am critically ill? Rules of thumb usually require 5 years of expenses at a miinimum with a additional sum for out of pocket costs. - Medishield Life: Do I have at least an integrated shield plan and a rider? Regardless of whether it allows me to go to private hospitals or only restructured ones, this insurance is important - Long Term Care: If you are a Singaporean Citizen or PR, then you should have Eldershield. But the coverage is not a lot. You could use your Medisave to get supplementary coverage. Take a look at your policies and see which policy covers what. Just because one has a 100K term insurance, doesn't mean it will cover CI. It could only be death/TPD cover (which might be the case). If it has a rider provide accelerated CI cover, then I can consider that you have CI cover of $100K on the term plan. Similarly, a life insurance plan may not cover CI, depending on the policy. You need to understand what is covered, but if you have difficulty figuring out, you might need to speak to an advisor. With the rules of thumb, and knowing what each policy covers (and doesn't cover), you will then be able to gauge your shortfall and decide if you need to insure yourself better, or you can move forward to invest for your retirement. Lastly, an advisor who can distribute multiple company's products would be mostly from an IFA, such as myself.
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PolicyPal

Insurance

Life Insurance

Whole Life Insurance

Can I claim from more than 1 Life Insurance Policy?
You are legally entitled to hold more than one Life Insurance Policy. Your beneficiaries are allowed to make a death claim to the different policy providers in the unfortunate event of your death. Holding multiples policies provide you with an extra layer of protection that a single policy might not, while also acting as a hedge against claim rejection. However, there are some key conditions. 1) You must disclose all previously brought policies to the insurer at the point of purchase of a new policy. 2) The combined death benefit cannot exceed your Economic Life Value.
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PolicyPal

Insurance

Retirement

Life Insurance

Aviva MyRetirement Choice Vs Manulife Readyretire Plus, which is a better plan?
Hi anon, There are several factors to consider. I'll list the key points here, but ultimately you will have to choose which combination of factors will matter to you more. - Guaranteed yield: This is a core reason why we get a retirement plan. You don't want your money to erode due to inflation, so there should be a decent guaranteed yield, with potential upside. As I do not know your profile, it's impossible to say which plan has the better yield for you. - Premium duration/mode: Manulife allows for Single Premium, whereas Aviva's shortest premium duration is 5 years. Manulife also allows SRS funds to be used to get the plan. - Acccumulation and Payout Duration: Manulife is more rigid as they have certain defined payout age, and defined payout durations. Aviva has far more flexibility. - Disability benefits: Manulife covers 2 and 3 ADL with their loss of independence income feature, whereas Aviva covers 3 ADL via the care income benefit. - Projected returns: This depends on your plan, without your profile, it is not possible to comment. - Waiver Riders: Waives premiums upon certain events occuring, e.g. cancer or CI. Both insurers are quite similar in that aspect. - Death benefit: Should you pass on prematurely before the end of your retirement plan, look at the remaining death benefit between two plans with similar parameters. I will just say that you might be surprised by the result. - Fringe benefits: Manulife allows you to adjust the payout duration period up to 2 years before it starts, and there's a retrenchment benefit as well. I would say that you should look at these factors to know what matters the most to you. Speak to an independent financial advisor in order to find to get a better idea of what would be suitable for your particular situation, so that you can get a tailored recommendation. There is no best retirement plan out there, we should instead look at the most suitable plan for you.
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Investment Linked Policies (ILP)

PolicyPal

Investments

Life Insurance

Insurance

What are investment-linked policies and what is a good amount to allocate to it if I am interested to buy?
Hi anon, There are generally two types of investment linked policies. Both types would invest in Unit Trusts which would be chosen by you or the advisor, depending on the status of the CKA. There are many types of unit trusts, but they are all non-guaranteed and you will be exposed to the full upside and downside risks of the market. As mentioned, ILPs come in two sorts, one with both protection and investment elements (traditional ILP), and one that is purely geared for investments (these often come with bonus units, etc or 101 ILPs). Both will usually have a regular premium mode whereby you contribute monthly, but they will come with fees and some T&Cs with regards to withdrawals and premium holidays. Your coverage is either based on what you choose, or 101% of your premiums or account value, whichever is higher. I don't recommend mixing investment with insurance. For insuring yourself, your needs would be better off met via traditional insurance. The fees and mortality charges on an ILP can really ramp up fast. As for 101 ILPs, their charges and fees can also be significant. You will likely be better of investing via an investment platform.
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