Tag Archives: financial planning

Hospitalization Coverage in Singapore

After retirement, how are you going to pay for your hospitalization premiums?

After retirement, how are you going to pay for your hospitalization premiums?

Most of us in Singapore have a comprehensive hospital coverage to protect ourselves against the rising medical costs so that should anything happens, we have a peace of mind as the insurance company is there to take care of our hospital bills.

However, have you thought of what happen after your retirement? Without an income coming in or lesser income coming in, how are you going to pay for your hospital premiums when it will increase as you aged older? Do you have an additional of $89,000 coming in after retirement?

If no, what are you going to do? How are you going to pay for it? Not forgetting that this is the time you need hospital coverage the most?

Do contact me if you want to know what are the various options that are available to you so that you have this sum of money coming in after your retirement.

 

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Should I change my insurance portfolio?

Source: The Straits Times, 5 July 2015

Source: The Straits Times, 5 July 2015

“Insurance protection is important as it gives me peace of mind,” said Mr Yeo. “If something happens to me, I know that my family will be well covered.”

As Mr Yeo has a family history of certain medical conditions, he was concerned about covering himself against critical illness as he grew older. His father, a diabetic, died from a heart attack at 71.

Mr Yeo started out with four policies – a whole life plan, two endowment plans and a regular premium, investment-linked insurance policy (ILP) – which amount to a total sum assured of $210,000 and a critical illness cover of $50,000. His total annual premiums were about $6,000.

REVIEW IN 2008

In 2008, his financial adviser recommended that he boost his critical illness cover to $330,000 by adding two plans – a regular premium ILP and a whole life limited-pay 20-year plan – both of which offer critical illness protection. Mr Yeo also bought private integrated Shield plans for him and his family, which will help cover hospitalisation bills.

Back then, Mr Yeo was aware that he did not need to hold the ILP policy for his lifetime. With an annual premium of $2,400, the plan’s sum assured was $180,000 and it came with a critical illness cover of an equivalent value.

The whole life limited-pay plan, which has a sum assured of $100,000 and a critical illness cover of the same value, has an annual premium of $2,458.

At this point, his total sum assured and critical illness cover was $490,000 and $330,000, and the total annual premiums for his plans were about $11,000.

REVIEW LAST YEAR

Mr Yeo wanted to ensure that his critical illness insurance covers him for life without increasing his premiums significantly.

He decided to restructure his insurance portfolio by surrendering his two ILPs and buying another whole life limited-pay policy. The latter requires premiums payments for 25 years and he enjoys a lifetime protection cover as long as he does not surrender the plan. The whole life plan has a sum assured of $230,000 and a critical illness cover of the same value, coupled with an early care cover which covers critical illnesses at different stages of severity.

After these changes, Mr Yeo’s total death benefit was reduced marginally to $440,000 while his critical illness cover was maintained at $330,000 with an enhanced early care component of $100,000. His premiums amounted to $11,444.

How about yourself? When is the last time do you review your existing policies with your financial planner? Do a comprehensive financial review annually that includes your financial objectives, time horizon, budget and your risk appetite. Do not have the wrong impression that buying just one plan is enough to last you for your lifetime.

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It All Begins With Wealth Protection

wealth protection

The importance of Financial Planning. Always review your existing insurance policies as you move to different stages in your life. Please do not be mistaken that by just buying one plan is good enough to last you for the rest of your life.

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Worst money habits millennials tend to have

Source: Asiaone, 5 Feb 2015

Source: Asiaone, 5 Feb 2015

As more and more millennials are graduating with a degree, they are able to earn good income after working for two to three years. However, this sudden burst of income can have a negative impact if they do not plan their expenses properly. The bad habits formed, if not changed, will definitely be a problem to them in future.

In Singapore, the percentage of credit cardholders with incurred debts beyond their annual income is about 3 per cent. Life-changing events such as marriage, financial downturn or medical problems can also cause a huge change in your financial stability. Acquiring good money habits will protect you from ‘financial storm’. One should be prepared to tackle money issues at any point in time, regardless how comfortable we are in our finances.

The 13 bad money habits that young people have include splurging on a car, not saving, taking up unnecessary loans, being a spendthrift, living on credit, not keeping track of their expenses, failing to invest, investing too aggressively, expecting their parents to save the day, not understanding finance, copying their friends’ spending habits, lending money to others and not having insurance.

Do you have the 13 bad money habits too? Are you savvy in budgeting – are you aware how many percent of your income goes to expenses and how many percent do you save? Which part of your expenses account for the highest percentage in your expenditure? Do you know any ways to save more money for your future or do you have any expenses which you can cut down more?

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Importance of Financial Planning

Recent survey showed that many people in Singapore are under-insured and do not have enough for their retirement. If this is the case, why is it that people choose to do nothing and do not enhance their existing coverage or enhance their wealth for retirement? Do you also fall under this category too? What is stopping you from enhancing your portfolio?

Is it that you find it too expensive to buy another policy now because of your current age? Do you find that financial planning is too comprehensive and technical for you to understand? Or you do not trust the financial planner as they are too aggressive and just interested to close the sale and earn the commission out of you?

That is my purpose of creating this website – to help you manage your wealth in terms of wealth protection, wealth accumulation and wealth distribution,  to give you a good understanding of what financial planning is about and how you can plan your personal finance to get sufficient coverage for yourself should any unforeseen circumstances happen. Most importantly, to have your retirement plan in place so that you can have a comfortable retirement.

If you are married with children, I will also discuss topics such as planning for your children’s tertiary education and their life insurance.

What is the opportunity cost if you do not take any action now? What is the implication on you and your family without proper financial planning?

Check this website regularly to keep yourself updated with the latest posts.

“If you fail to plan, you plan to fail” by Benjamin Franklin

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