New Assist Rider To Keep Hospital Bill To A Minimum

NTUC INCOME has recently introduced a new supplementary benefit [commonly called Rider] to provide the necessary protection while incorporating features to reduce the prospect of abuse, thus managing the costs for all concerned. This new Rider is called “Assist Rider” replaces the “Incomeshield Plus Rider”.



According to NTUC INCOME, with the experience of hindsight, it realized that full rider with no co-payment element lends itself to over-servicing and over-consumption. This inevitably results in rising claims and costs, with insurers ending up having to raise premiums regularly.

Also, compared to “full” rider plans offered by other insurers in the market, the premium for Assist Rider is 40%-50% lower. For example, for a 45 year old, savings from the new Assist Rider could be as much as $1,700 over 10 years. For a family of four, the savings can add up to a considerable $5,000-$6,000 over 10 years.

With the new Assist Rider, the Insured will bear the “co-payment” portion which is 10% of the benefits, subject to a maximum cap of $1,500 [for Plan C] to $3,000 [for Plan P].



Do drop me a note if you want to know more about the Enhanced Incomeshield plan or this new Rider.

Facing The Giant

If you are looking for some inspirational or motivational guidance. The above short video clip is worth your while watching. Happy viewing!!!

Why Good To Start Investing Earlier

When you start early i.e. at a young age, you stand to gain the most with the help of compound interest and dollar-cost averaging concepts. You are also investing at a lower risk level and maximising of returns over the longer term. Importantly, you have a long-term investment horizon to play with.

You have to believe in the principles of compound interest and time horizon. It works wonder! An illustration I read shows that an individual started a yearly investment of $1,000 at age 25 for a period of 10 years @ 6% return. He allowed his investment to continue growing at 6% from say age 35 to 62 without any further yearly contributions. Wow! at age 62 his investment totalled $71,420.

On the other hand, another guy started on a yearly investment of $1,000 from age 35 [i.e. 10 years later] continuously upto age 62 he would receive $72,640. See the different, one invests only for 10 years while the other needs to contribute continously for 20 plus years.

Understandably young people especially those who just started working may not have the means to invest big but they can start on a regular savings plan. Set aside a small monthly contribution of say $50 or $100 and let time and compound interest work for you.

NTUC INCOME has a wide variety of investment plans that give attractive returns. Surely you can find one that meet your need. If you are still in doubt no problem, I'm here to help to fulfill your future financial goal.

Make Your Money in Your CPF Works Harder For You

Before the new CPF changes on Ordinary Account [OA] come into effect shortly, you may want to take advantage in putting your money in your ordinary account to work harder for you.

Before are illustrations of the difference by leaving the money in your ordinary account and transferring it to other funds to generate better returns for you:-

Say a male aged 40, has $50,000 (assuming housing loans taken care of] in his OA - currently his first $20,000 will earn an interest at 2.5%. Above $20,000 will also earn 2.5%.

Come 1st Jan 2008, his first $20,000 will earn him 2.5% + another 1.0% and 2.5% for above $20,000.

This gentleman has two options.

OPTION 1 - Leave his money in the OA
OPTION 2 - Use his money in the OA for investment before 1st Jan 2008

This is what happen

Under Option 1 [Leave it as it is in CPF OA]
--------------
1st $20,000 fr OA at 3.5% for 20 years = $39,796
Bal $30,000 fr OA at 2.5% for 20 years = $49,158
TOTAL = $88,954

Under Option 2 [Investment in other plans]
--------------

Use $50,000 in say Plan A for 20 yrs @ 4.15% = $113,081 or
Use $50,000 in say Plan B for 20 yrs = $107,800 [@ projected return of 5%]
or = $227,700 [@ projected return of 9%]

This is an opportunity not to miss. Act Now! Please contact me immediately and I shall be more than happy to share with you how I can use the financial vehicles i.e. the said Plan A and B abovementioned to help you make more money for you. I will also share with you the related benefits under Option 2.

Medishield Coverage For Newborn babies

Hi Parents To Be!!

In case you missed reading the CPF Board's press release, here is a brief note about the medishield coverage for newborn babies.

From 1 December 2007, all newborn Singaporeans and Permanent Residents (PRs) will be offered MediShield coverage on an opt-out basis. From mid-2008, the Ministry of Health will also facilitate coverage for Singaporean and PR youths.

Today, MediShield auto-coverage is already offered at the point of a person’s first working contribution to CPF, and at the point of marriage registration. In addition, parents today can voluntarily purchase MediShield for their children through the CPFB, or through Medisave-Approved Private Integrated Plans offered by private insurers.

New Born Children

· MediShield coverage will be offered to all Singaporean children whose births are registered on or after 1 December 2007.
· This will be extended to all children of Permanent Residents, where the child is born in Singapore and the parents register their newborn child’s permanent residency in Singapore on or after 1 December 2007

Children Aged 0 to 6

· Singaporean and Permanent Resident children attending Primary One in mainstream schools in the coming year will be provided with opt-out coverage, between May and June 2008.
· This exercise will be repeated for each batch of Primary One pupils over the next 6 years from 2009 to 2014.


Basic coverage for newborns and youths is affordable at $30 per year. The annual premium will be automatically deducted from the Medisave account of the father. If there are insufficient funds in the father’s account, the premium will be deducted from the mother’s Medisave account.

There Is Another Way To Save More For Your Old Age

As you may be aware in year 2001 the Singapore Government launched a savings scheme called Supplementary Retirement Scheme [SRS in short]. SRS is part of the Government's multi-pronged strategy to address the financial needs of our greying population.

SRS complements the Central Provident Fund [CPF]. CPF savings are meant to provide for housing and medical needs for basic living needs after retirement. Whereas SRS is a voluntary scheme. Indeed, it is a voluntary scheme to encourage working individuals to save for retirement, over and above their CPF savings.

Participants can contribute a varying amount to the SRS [subject to a cap] at their own discretion. The contributions may be used to purchase various investment instruments. How? Please feel free to drop me a note and I would be more than delighted to share with you on how it works.

SRS also offers attractive tax benefits.

> Tax Relief on SRS contributions (subject to certain limits)
at the tax rate applicable to the top slice of your income.

> Investment gains accumulated tax-free.

> Only 50% of the amount withdrawn on retirement will be taxed.
You can spread your withdrawals over 10 years to enjoy greater tax savings.

> Full amount taxed if withdrawn before
retirement. Further penalty at 5% will be imposed

How To Beat Uncertainty In A Difficult Job Environment

NTUC INCOME did a recent survey on how one should plan his or her finances to cope with rising job and earning uncertainty.

Three key findings were ascertained.

FINDING NO. 1 -
Most choose to reduce expenses to cope with job uncertainty

** Save 10 to 20% of earnings by reducing expenses - 73%
** Not possible to save due to existing commitments - 27%

FINDING NO. 2 -
Most prefer a flexible savings plan

** Flexible insurance savings plan - 66%
** Traditional life insurance plan - 24%
** Leave money in the bank - 10%

FINDING NO. 3 -
Most prefer to invest their savings to achieve
moderate risks and returns

** Moderate risk and return of 5% p.a. - 52%
** Low risk and return of 3% p.a. - 29%
** High risk and return of 7% p.a. - 11%
** No risk but with return of 0.5% p.a. - 8%

The question is how to beat the Uncertainty?

Well, you don't need to look further. NTUC INCOME has financial plans that give attractive return at low risk.

If your financial future means a lot to you. Don't procrastinate, call me or drop me a note immediately let me help you to select a suitable plan that can meet your future financial needs.