Tag Archives: life insurance

Do You Understand the Insurance Policies that You Bought?

Source: The Straits Times,  8 Nov 2015

Source: The Straits Times, 8 Nov 2015

There are many policyholders who find it difficult to understand their policies and they do not know how to read the figures in the benefit illustration document to make a decision. When you buy a policy, you get documents such as benefit illustration, life insurance guide and product summary. In the benefit illustration, it will indicate both guaranteed and non-guaranteed benefits and the costs and charges relating to the product you are buying. Besides guaranteed benefits, the non-guaranteed benefits are typically in the form of bonuses that are added to the sum assured. They cannot be later reduced or removed once declared.

Like most traditional whole-life and endowment plans, premiums are pooled in a designated “participating or life fund”. The insurer invests the fund in a range of assets such as equities, government and corporate bonds, property and cash to earn returns that are used to pay the policyholders as well as to finance expenses.

Every year, you will receive an annual bonus update that will show you the bonus that your policy has accrued. You will also receive a par fund update which gives a snapshot of the insurer’s life fund performance over the past three years.

Source: The Straits Times, 8 Nov 2015

Source: The Straits Times, 8 Nov 2015

It is also important to ensure that you can afford the premiums and are able to pay them throughout the plan tenure. Policyholders who surrender their plans early are likely to incur losses and in worst case scenario nothing back.

So do you understand what do your existing polices covered? Do you have sufficient coverage to protect yourself for the future? When is the last time you review your policies? Have you thought of getting a second opinion to what you have bought?

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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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Payout from life insurers drops to S$6.79b despite rise in claims

Source: TODAY Online, 7 Feb 2015

Source: TODAY Online, 7 Feb 2015

The life insurance industry paid out to policyholders and beneficiaries has fell to S$6.79 billion in 2014 which is attributed to a drop in the paid out amount for matured policies. The rise in pay out for death, critical illness or disability claims however rose by 13% from 2013. On the whole, weighted new business remained the same as per last year while annual premium sales fell to 1.928 billion compared to 2013. The Life Insurance Association Singapore (LIA) said that the re-pricing exercise of Integrated Shield Plans (IPs) has seen a rise in premiums. In 2013, single premium sales increased to S$860.8 million and in 2014, the amount of new health insurance premiums fell by 42% to S$266 million from 2013. IPs and IP riders account for 92% of new health insurance premiums. LIA said that one in two individuals in Singapore has health cover, with premiums amounting to S$1.6 billion as of December in 2014. With the establishment of MediShield Life in end-2015, LIA would continue to collaborate with the Government and IP insurers to raise better public awareness and education on health insurance and on how MediShield Life and IP work.

What do all these figures mean to you? By looking at the increased in pay outs for death, critical illness or disability claims and the increase in new health insurance premiums, this shows that these areas are a concern of the people here. How about yourself? Are you covered too and is your coverage sufficient?

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