Whole Life Insurance

A mix of coverage and savings components

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Whole Life Insurance
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Jan)

    295 Answers, 494 Upvotes
    Answered 3w ago
    Instead of looking at premiums, look at coverage. You should have 10-15X your annual income as Life Cover, 3-5X your annual income as income protection (CI). If you're making 50k a year, that's 500-750K in Life Cover and 150-250K in CI coverage. If you're covered for more, you may want to decrease your cover. Typically, if you're covered for the above amounts, you should be paying 8-12% of your monthly income in life insurance.
  • Asked by Anonymous

    Jonathan Chia Guangrong
    Jonathan Chia Guangrong, Fund Manager at JCG Fund

    Top Contributor (Jan)

    339 Answers, 485 Upvotes
    Answered 3w ago
    From what I know the waiting period is one year for cases of suicide. Depending on the contract wording the death benefit may pay out or the policy may be void and the premiums paid will be 'refunded' to the estate. Need to fall back on the contract wording for claims assessment.
  • Asked by Justin Tan

    Jonathan Chia Guangrong
    Jonathan Chia Guangrong, Fund Manager at JCG Fund

    Top Contributor (Jan)

    339 Answers, 485 Upvotes
    Answered 4w ago
    Depending on the insurer and current status of the condition, likely to be offered non standard terms. You may wish to do a preliminary underwriting application with the insurer of your choice to see what terms will be offered. This way, you won't have a 'black mark' when asked if you have been offered non standard terms on other applications
  • Asked by Anonymous

    Brandan Chen
    Brandan Chen, Financial Planner at Manulife Singapore
    153 Answers, 224 Upvotes
    Answered 4w ago
    Would encourage you to upgrade your Hospitalisation to minimally Private or Class A ward if you are able to afford it! As for CI, there are 3 main options available: 1) Whole Life Plan 2) Term Plan 3) Multi-Pay CI plan It is also important to look at ECI coverage if you have the budget. In terms of how much to cover, perhaps you can consider covering about 1 - 2 times of your annual Income in ECI and overall 5 times of your annual income in CI. It is best that you sit through with a financial advisor that is able to explain the available options so as to cater to your needs and budget. Alternatively, you may also drop me a PM on facebook https://www.facebook.com/brandan.chen or arrange for a chat with me via the following website: https://brandanchen.manulife.sg/
  • Asked by Anonymous

    Christopher Tan
    Christopher Tan, Executive Director at MoneyOwl Private limited

    Top Contributor (Jan)

    48 Answers, 93 Upvotes
    Answered on 24 Jan 2019
    Hi anonymous, thank you for asking. Luke Ho below has given a very comprehensive answer to your question and I have nothing more to add, Do note that when you compare your insurance on www.moneyowl.com.sg, the credit rating of the insurers are shown as well. As for the rest of the points that Luke has mentioned, if one sees our client adviser for a discussion, the advisers will also share with your some of this observations as well. They are not on the robo because some of the observations such as speed of claim, claim experience can be pretty subjective and it differs from case to case. It is like we all experience good or bad services from all the different telcos. It is very difficult to pinpoint which Telcos give the best service. Hope our collective answers helped!
  • Asked by Anonymous

    Christopher Tan
    Christopher Tan, Executive Director at MoneyOwl Private limited

    Top Contributor (Jan)

    48 Answers, 93 Upvotes
    Answered on 24 Jan 2019
    Hi anonymous, thank you for the question. My conviction is that financial planning need not be complicated and you can actually DIY if you: 1. Take time to learn how to do it 2. You have the time to do it 3. You have the interest to do it You save money by not using an adviser. So with a limit time and space, let me provide some simple guidance: 1. If you cannot save, you cannot invest - Start first by having a budget. How to do a simple budget a. Estimate your monthly income b. Set a target saving amount per month c. Income - savings = How much you can spend d. Divide your spending into fixed and variable expenses e. For your fixed expenses such as mortgage, insurance premiums etc, set it aside every month (maybe into a separate account) and Giro off from this account to pay your fixed expenses f. For your variable expenses, pay using cash or by debit card to avoid overspending 2. Your monthly target savings should help you accumulate up to 3-6 months of your monthly expenses. This is known as your emergency fund. This monies should never be invested but you can put it in high interest savings account (such as DBS Multiplier, UOB One, OCBC 360), FD, or SSBs 3. Cover yourself with sufficient insurance. The 3 must have insurances are: a. Hospital Plan - such as Medishield Life or an IP b. A low cost term plan to protect against loss of income due to death, disability or a critical illness) c. An optional critical illness plan to pay for alternative treatment that cannot be paid via a hospital plan. (You can visit www.moneyowl.com.sg to estimate your insurance needs and estimate the premiums) 4. Invest using low cost funds - low cost means total expense ratio(TER) is about 0.5% p.a. In investments, cost eats into returns. You can use ETFs that track the index or when MoneyOwl is ready to offer investment services in March, you can gain access into Dimensional Funds at no sales charges and low TER. 5. Write a simple will. MoneyOwl will offer complimentary will writing service very soon. Hope this helps.
  • Asked by Anonymous

    Loh Tat Tian
    Loh Tat Tian

    Top Contributor (Jan)

    232 Answers, 331 Upvotes
    Answered on 13 Nov 2018
    Its a morbid product which you wished you never need to claim for, but grateful when the times comes when you need it. It is also a product which you cannot buy from (after your death/illness) when you want to buy. Its a contract between the insurer and you, when you pay premiums, in the event that you are met with death (or illness depending on the policy wording), a payout is given to protect you/your dependents financially.
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    192 Answers, 250 Upvotes
    Answered on 09 Nov 2018
    Hi, I urge u to contact me on my facebook as we'll need to do a more detailed analysis of your policies and understanding your financial situation. I'm not an insurance agent nor affiliated with any fa firm. From what u have provided, there are several ways to go about it. Were u with SAF or MHA, or was it through your spouse that u purchase the Aviva Group plans. There are actually cheapest (so far i've seen) available in the market. You should keep them for now as they provide a huge cover for premium u are paying. The only issue i observed is that your critical illness coverage is very low. The group cI offers excellent affordable coverage per dollar now. but the problem with it is that it increases according to age band. It will cost much more when u go into your 50s and 60s. You can look to covert to a long term solution once u get a into your new career. The AIA glow of life is something u can look to cut (after u increase your CI coverage elsewhere, like the Aviva group). $25k is really not much coverage. Such standalone product usually cost much more per dollar coverage u are getting if u had bought larger amount elsewhere. Vivolife and TM legacy plus. I'll really need to look at what is your premium terms (how many years more to pay etc). Their death benefit and $50k combine CI benefit are also not much. You can easily increase your coverage with your term life. $4.10 per month per $100k life, CI will cost $9.90 per $100k (assume u are below 40). Whole life plan is mainly used as a legacy tool and it consist largely of savings. Term offers the best protection per dollar for your prime year (the period u need it most) and if cashflow is of a concern to u now. I've need to read the T&C of the paysecure. I'm not sure if it provides cover since u are unemployed now, even if there are any claim when u are unemployed, typically such policies will provide a reduced benefit. Depending on your next career occupation class and its nature, it might not be necessary to take such insurance. It might be better to put the money into increasing your CI insurance. Since u have the group PA, u might want to reduce the other aviva accident policy sum assured. The medical expenses can be useful in certain situation. Hospitalisation plan is good and should not be cancelled or downgraded. For details of my views and perspective, especially in area like critical illness, please do not hesitate to discuss further with me.
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Jan)

    295 Answers, 494 Upvotes
    Answered on 09 Nov 2018
    Your ILP is just another investment vehicle. If your portfolio is sound, there's nothing wrong with withdrawing from it to pay for anything you want. The thing you need to ask yourself now is that do you have enough coverage? The rule of thumb is about 10 X of your income for Death Coverage and 3-5 X of your income for Income Protection Due to Critical Illness. Cancelling any insurance plan early always comes with hefty penalties. And converting it to a paid up policy this early could be an option but i doubt you'll have much coverage left. You should buy a term if you're also planning on investing yourself. A whole life plan can safely provide you 3 to 4% returns after about 20 years. It's a guaranteed asset. While a term plan is just an expense. So make sure you have enough coverage first, and if you don't and need to purchase more coverage, ask yourself if you'll be truly investing the difference and confident in achieving a higher return over the long run. Your age right now and number of dependents will also determine your decision.
  • Asked by Anonymous

    Loh Tat Tian
    Loh Tat Tian

    Top Contributor (Jan)

    232 Answers, 331 Upvotes
    Answered on 12 Nov 2018
    A Whole Life Plan, as the name suggest, is a "whole life" plan. The most if you wish to save, is to count it as a retirement plan at age 70 (but please do your own calculation on the internal rate of return). A whole life plan is a hedge for Critical illness protection more than savings (which, unless you are looking at retirement protection and inflation hedged). To get a decent return, you should consider Singapore Savings Bond, or even CPF (up to $60,000), to enjoy the 3.5-5% interest it gives.
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