Friday, March 30, 2007

What Can Be Bought When You Don't Neet It

Life insurance is like a parachute. You may not need it. But when
you do you better have it or you will never need it ever again.

Life insurance, like any type of insurance, can only be bought when
you don't need it. It is too late to buy when the need arises.

A dead man, a sick man or a disabled man cannot buy life insurance

Thursday, March 29, 2007

I Don't Need Insurance Because I ....

Just a recollection. Some years back I had an occasion to sit down with a Prospect to do a Financial Need Analysis. True enough - after subtracting the liability from his net asset, there was a surplus of one plus million $$$. Bottom line - he said thank you not need to buy life insurance.

That was right theoretically. However, my suggestion to him was unless someone could guarantee him that he could stay in the pink of health for the rest of his life then fine.

I told him that once a critical illness striked, the illness could literally wreck the fortune he had accumulated over a lifetime? He nodded in agreement.

Indeed, Critical Illnesses are becoming more and more common. Worst still, the various costs of medical treatments are sky-rocketing. So, why expose your savings to these medical-cost risk.

Leave your savings for your family. Pass the risk of high medical treatment cost to the Insurer then.

So these are facts :-

Fact 1 - Critical Illnesses are becoming more common today

Fact 2 - Treatment costs are escalating upward speedily

Fact 3 - You can afford the insurance premiums, you may not
be able to afford the unpredictable future treatments costs.

NTUC INCOME offers a critical illness plan popularly known as
LIVING POLICY that covers one against 30 specified illnesses
at affordable cost. It pays to have a look at this website

Do drop me a note if you need my assistance.

Wednesday, March 28, 2007

A Sincerest Love Letter That You Ever Receive

Life insurance has been given many names. One touching one is : "the sincerest love letter ever written" by a sole bread winner to all his loved. Why, because no life policy in the world can replace the life of a loved one. The primary purpose of life insurance is not to replace life. It is only to replace income of the breadwinner that sustain life of those who need to live on. It keeps dreams alive even after the breadwinner's demise. Which other love letters were written with such noble intentions in mind? Of course, there is none that can be compared to life insurance, isn't?

Life insurance creates capital where none existed before. In this respect, no other financial instruments on earth can do what life insurance can do. Two cents a year and you create a dollar where there is none before so to speak. Put aside twenty thousand dollars and you create an immediate one million dollars fund. What other instruments can perform such awesome magic?

Insure yourself adequately [your financial capability permits]. Then if your loved ones need to cry, at least, it is because they missed you, not because they can no longer feed themselves. It is time for a crucial decision and the making priority of your needs. Make a little financial sacrifice for their tomorrow, for their many days to come.

Spend say 10% less a day. Is that too much to ask from your dear ones? You will be surprised at how much capital it can create for them. After all, you claimed you sweat so hard to build a future for them, why not insure your life for them? Make the decision today, not tomorrow, for it could be too late.

Make that important decision today - so that when you take a long leave and forget to come back, more people can still smile with tears in their eyes; knowing that they have not only lost a husband, a father, business partner, a debtor but also a sincere individual who has blessed their life. Having said so much really it is all in your hand.

If you have yet to do something meaningful for your loved ones, do drop me at note and I will be more than delighted to share how you could go about creating a capital for the benefits of your loved ones.

Tuesday, March 27, 2007

Does A Sole Proprietor Of A Business Need Insurance

Because the law recognizes that the owner and his business are one [sole proprietorship so to speak], the law makes no distinction between the obligation of the business and the obligations of the owner.

If you as a sole proprietor incurs a debt, it makes no difference whether it is a business debt or a personal debt; you are fully liable in either case. A business debt will jeopardize your personal assets; a personal debt will jeopardize your business.

The nature of your sole proprietor business creates several problems that are best solved through insurance. While some of these problems are fully recognized by the professionals, their solutions are obvious only to an experienced insurance adviser.

Take for instance, in order to experience the challenge of being in business for yourself, you are paying a price in term of sacrificed benefits. So sole proprietor in your own interest, it pays to consult an insurance adviser who can propose what’s the best benefits that you would have as an employee.

Sunday, March 25, 2007

Life Insurance - To Buy Or Not To Buy ?

What are the financial consequences of dying young or of living too long? Or of just growing very old? The financial consequences of an early death are obvious: they are not unlike the consequences of permanent total injury or disability. Also, there may be other sources of financial problems such as :-

- life may continue for longer than expected
- future income may dry up to meet recurring expenditure
- unexpected liabilities may arise
- inflation or taxation may reduce expected spending power

Many people choose the purchase of life insurance [be it traditional or investment-linked] plans or annuities as the most efficient means of making provision for uncertain future.

Whatever it is, the best approach is by looking at a household's plan for the future and then examine the events that could frustrate those plans.

Take for e.g. a couple where the husband works and the wife stays at home to look after their 2 kids. The family should take account of the following :-

the implication of the death of the husband
- permanent loss of his income
- need for the wife to return to work
- the length of time before the wife could return to work
if the kids were not yet in school
- the need to engage maid to care for the kids
while mum is at work etc

implication of the death of the wife
- same for the husband, but with extra emphasis on the
need to care for the kids while husband is at work

implication of the survival of husband and wife
- the need for an adequate income for retirement
- the need to provide for nursing and/residential care in old age
- the need to plan for contractual liabilities and debt repayment, if any
- the need to plan for future spending
- the provision of an inheritance for their children.

Once the possible consequences of early death or extreme old age have been identified, they must be measured. For e.g. how much income would be lost if the husband should die? How long would it be before the widow could return to work? How much would she earn?

Nonetheless, the decisions on whether or not to undertake the financial risk by investing in life insurance or annuity, and how much cover to take up, will be influenced by couple of factors such as :

- taxation for premium and benefits
- protection of dependents against premature death
- the provision of an income on retirement etc

Enquiry on how you can go about mapping out a financial plan for you and your loved ones are most welcome.

Saturday, March 24, 2007

All About Insurance

Welcome To My Blog

This is my 1st posting. I intend to use this as my plateform to share and learn all about insurance. Be it life or general insurance. This will also serves as a 2-way communication vehicle between me and my valued clients. It will be speedier for me to disseminate the latest news from the insurance organisation that I represent viz. NTUC INCOME. Naturally, any comments and feedback from readers will be most welcome.
For the start, I just wanted to to say a few words. What exactly is "Insurance". To my knowledge, Insurance is an arrangement by which one party [the Insurer] promises to pay another party [the insured or policyholder] sum of money if something should happen which causes the insured to suffer a financial loss. The responsibility for paying such losses is then transferred from the policyholder to the insurer. In return for accepting the burden of paying for losses when they occur, the insurer charges the insured a price, commonly known as "insurance premium"