Some people asked me what is "investment-linked" plan?
Well, I try to share with you in the simplest term.
An investment-linked plan is actually a life insurance plan that combines investment and protection.
The premiums that you contribute provide you not only with life insurance cover but part of the premiums will also be invested in specific or selected investment funds of your choice. You, as a policyholder, can choose how to allocate your insurance premiums towards protection and investment.
The insurance coverage provided would include death benefit, disability.
The investment fund is divided into units of equal value. The prices of these units are published daily in the newspaper for you to track the value of your investment. In the case of NTUC INCOME, you can view the prices [click this webpage]
Comparing with traditional life insurance policy, investment-linked plan has the following unique features :-
[1]you are given the flexibility to choose your own level of protection and investment
[2]you can vary the amount of your premium payments or coverage according to your changing financial circumstances
[3]you can choose from a wide variety of funds to invest,
depending on the level of risk that you are comfortable with.
[4]investment in growth or equity-related funds may give higher returns than traditional life insurance plans over the long term. However, you have to bear in mind that higher returns come with greater risk.
As it is today, I observe that more people are putting their money in an investment-linked plan compared to the traditional life insurance policy.
If you are undecided which is the best option, you are welcome to drop me a note and I shall be more than happy to walk through with you on the benefits of investment-linked plan vis-a-vis traditional life insurance plan.
Thursday, May 24, 2007
Tuesday, May 22, 2007
Invest In Life Assurance Program While U Are Still Insurable
If you feel you are still in good health and have not seen a doctor lately. Why wait, quickly take up a life policy while you are still in the pink of health!
I know of a guy who underwent angioplasty. Only after that he knows the value of life insurance and yet not be able to buy one. He was told to re-apply after 5 years. After his long wait, he was relieved that he could be accepted.
So never take good health for granted. You should thank god for it and insure yourself immediately.
Ever heard this :-
"When I don't want to buy, every agent looks for me. When I needed to buy, no agent can help me"
"When I'm insurable, I don't have the money. When I have the money, I not be insurable"
So folks, whatever these may be, please take advantage of your good health, get yourself insured immediately.
Buy some basic plan first. Buy according to your affordability. It is always better to have some plan than no plan at all.
I know of a guy who underwent angioplasty. Only after that he knows the value of life insurance and yet not be able to buy one. He was told to re-apply after 5 years. After his long wait, he was relieved that he could be accepted.
So never take good health for granted. You should thank god for it and insure yourself immediately.
Ever heard this :-
"When I don't want to buy, every agent looks for me. When I needed to buy, no agent can help me"
"When I'm insurable, I don't have the money. When I have the money, I not be insurable"
So folks, whatever these may be, please take advantage of your good health, get yourself insured immediately.
Buy some basic plan first. Buy according to your affordability. It is always better to have some plan than no plan at all.
Monday, May 21, 2007
Will You Deny Your Loved One Who Asks For A Daily Allowance
Think of it i.e. if your loved ones asked you for an additional $6.00 in daily allowance, would you say no?
This additional $6.00 a day outlay is equal more or less $2,000 a year. That's the approximate yearly deposits for a $100,000 life insurance cover!
You can see, most people can afford to protect their family through life insurance program.
It is just that many thought the premiums are out of their reach.
As a matter of fact, many people take the payment of premiums as a burden or liability when it is not. When you bank a part of your monthly salary into your bank account for example you never complaint or find it a burden.
But why find it a burden when you pay your monthly premium ? Fact is you are actually setting aside a monthly contribution to your savings account this time through insurance program, isn't?
This additional $6.00 a day outlay is equal more or less $2,000 a year. That's the approximate yearly deposits for a $100,000 life insurance cover!
You can see, most people can afford to protect their family through life insurance program.
It is just that many thought the premiums are out of their reach.
As a matter of fact, many people take the payment of premiums as a burden or liability when it is not. When you bank a part of your monthly salary into your bank account for example you never complaint or find it a burden.
But why find it a burden when you pay your monthly premium ? Fact is you are actually setting aside a monthly contribution to your savings account this time through insurance program, isn't?
Sunday, May 13, 2007
Endowment Insurance
There are people who are under the impression that there is only one type of life insurance. The answer is no. Endowment is another one. An Endownent insurance plan has two roles to play.
One is to provide insurance protection in the same way as a whole life or term policy does.
The second, is to offer a person i.e. policyholder a means of accumulating a tidy sum in cash savings.
For this type of plan, there is a time frame i.e. you can select a period of time e.g. 10, 15 or 20 years; or up to a certain age e.g 55, 60 or 65 years old.
So long as the life assured is alive during the term of the coverage, premiums are payable. The sum assured is payable to the assured when the policy matures or to the beneficiary [in the case of NTUC INCOME to the nominee] in the event of the life assured dying before the policy matures.
Please click here if you want to know more about Endowment Policy offered by NTUC INCOME.
One is to provide insurance protection in the same way as a whole life or term policy does.
The second, is to offer a person i.e. policyholder a means of accumulating a tidy sum in cash savings.
For this type of plan, there is a time frame i.e. you can select a period of time e.g. 10, 15 or 20 years; or up to a certain age e.g 55, 60 or 65 years old.
So long as the life assured is alive during the term of the coverage, premiums are payable. The sum assured is payable to the assured when the policy matures or to the beneficiary [in the case of NTUC INCOME to the nominee] in the event of the life assured dying before the policy matures.
Please click here if you want to know more about Endowment Policy offered by NTUC INCOME.
Thursday, May 10, 2007
Whole Life Insurance
A whole life plan offers protection for life. When you buy a whole life plan you buy it with the intention of paying [or setting aside] the premium throughout your lifetime.
The premium usually remains unchanged and stops to be payable at a specified age e.g. 85.
Although the yearly premium for a whole life plan can initially be several times higher than for a corresponding amount of term insurance, this can be deceptive. That is because if you were to keep renewing the term insurance, the yearly premium you would find yourself paying in later years would be higher than if you’d bought a whole life plan in the first place.
Moreover, whole life plan contains an important savings element. What happens is, a portion of the excess of the whole life premium – over and above the term premium – is accrued by the policyholder as savings, commonly known as its Cash Value.
The premium usually remains unchanged and stops to be payable at a specified age e.g. 85.
Although the yearly premium for a whole life plan can initially be several times higher than for a corresponding amount of term insurance, this can be deceptive. That is because if you were to keep renewing the term insurance, the yearly premium you would find yourself paying in later years would be higher than if you’d bought a whole life plan in the first place.
Moreover, whole life plan contains an important savings element. What happens is, a portion of the excess of the whole life premium – over and above the term premium – is accrued by the policyholder as savings, commonly known as its Cash Value.
Tuesday, May 8, 2007
Which Plan Is Right To Buy?
Just as no two people are the same, no one insurance plan is right for every individual.
Really, which plan you choose or like depend on your personal needs.
In order to ascertain those needs, you need to assess your responsibilities, e.g. who your dependents are; are you the sole bread-winner. You'll also have to determine just what your resources are. Now, in the event of death who should be financially protected. How much income will be required to ensure that protection.
As a general guideline, when you have a young family, your insurance needs are generally at their highest. You may find that the best way to afford the amount of insurance you need is to buy a basic policy with quite a large term rider or a stand-alone Term policy.
On the other hand, if you wish to provide protection for your family while you are young, but at the same time would like to build a source of money for your use later, then you should be looking for appropriate plans that give you the return. You may want to look at a whole life or an endowment plan with its built-in savings programme.
There is another way i.e. you may buy a term plan that does not have builit-in savings and each year, invest the difference between the basic and the term premium in a savings account, government bond, or some other form of investments like an investment-link plan.
If you are the kind of person who can save regularly and keept it saved, you may build up an adequate sum of money for your retirement or for a specified purpose e.g. vacation or an education fund for your children.
However, few people are able to discipline themselves to save on a regular basis or resist using their savings for short-term needs. Instead, they prefer the semi-compulsion of saving through a basic life policy, especially when they can arrange for premiums to be deducted automatically from GIRO.
If you ask me, I would prefer to have a "Mix" of basic insurance and term riders to provide higher cover in the case of a contigency. One plan along would not be able to solve all your financial problems so to speak, bearing in mind that your needs change over time.
Really, which plan you choose or like depend on your personal needs.
In order to ascertain those needs, you need to assess your responsibilities, e.g. who your dependents are; are you the sole bread-winner. You'll also have to determine just what your resources are. Now, in the event of death who should be financially protected. How much income will be required to ensure that protection.
As a general guideline, when you have a young family, your insurance needs are generally at their highest. You may find that the best way to afford the amount of insurance you need is to buy a basic policy with quite a large term rider or a stand-alone Term policy.
On the other hand, if you wish to provide protection for your family while you are young, but at the same time would like to build a source of money for your use later, then you should be looking for appropriate plans that give you the return. You may want to look at a whole life or an endowment plan with its built-in savings programme.
There is another way i.e. you may buy a term plan that does not have builit-in savings and each year, invest the difference between the basic and the term premium in a savings account, government bond, or some other form of investments like an investment-link plan.
If you are the kind of person who can save regularly and keept it saved, you may build up an adequate sum of money for your retirement or for a specified purpose e.g. vacation or an education fund for your children.
However, few people are able to discipline themselves to save on a regular basis or resist using their savings for short-term needs. Instead, they prefer the semi-compulsion of saving through a basic life policy, especially when they can arrange for premiums to be deducted automatically from GIRO.
If you ask me, I would prefer to have a "Mix" of basic insurance and term riders to provide higher cover in the case of a contigency. One plan along would not be able to solve all your financial problems so to speak, bearing in mind that your needs change over time.
Saturday, May 5, 2007
Buying Health Insurance
Folks you may want to ask these questions before taking up a health insurance policy :-
* what will my health insurance policy cover?
* am I already covered for the same thing under another health
insurance policy?
* what doesn't the health insurance policy cover and when will I not
be covered?
* how much will I be paying for my health insurance and will I be able
to afford the premiums over the long term?
* how often will the premium be charged and will it be a fixed or
variable sum?
* will my policy automatically be renewed and what is the penalty if I
do not pay any premium on time?
* when or in what circumstances will my health insurance policy end?
* how do I end my policy?
* are there any limits to the benefits that can be paid out from my
policy?
* how will my future premiums be affected after I have made a claim?
* will I be covered for medical treatment performed outside
Singapore?
* how is my health insurance policy affected by other schemes that
pay for the healthcare?
* how do I make a claim?
If you have not taken up any health insurance for yourself or for your loved ones, you may want to have a look at the plans available in NTUC INCOME. Click here for more information.
Thursday, May 3, 2007
Building Your Child's University Fund The Easy Way Out
NTUC INCOME has just launched a new education policy called “Pay My ‘Uni’” in place of the old Child Education Policy.
What makes this plan unique is that the payouts can be spread over the duration of the tertiary education – covering yearly fees and expenses.
The payouts are available in 3 convenient parts. The steady stream of funds can coincide with the years of study to cover ongoing school fees and other expenses :
* 2 years before maturity of policy: > 40% of sum assured
* 1 year before maturity of policy : > 40% of sum assured
* Upon maturity of policy : > 20% of sum assured(plus
accumulated bonuses).
To meet the needs of unforeseen circumstances, the plan also offers the following covers :-
** Waiver of all future premiums in the event of death, or total and
permanent total disability of parent.
** Payment for each day of hospitalisation and medical leave
following discharge from hospital of child.
Payment of full sum assured plus accumulated bonus upon death, total and permanent total disability, or diagnosis of terminal illness of child
Parent also can enhance the protection further with a wide range of optional covers. For example, the Enhanced Income Benefit provides additional monthly allowance to the child in the event of death, total and permanent disability or diagnosis of dreaded diseases of the parent. The Child Plus covers child’s specific illnesses.
An another attractive feature is that upon maturity, your child can continue to enjoy the assurance without hassle - your child can purchase another whole life or endowment policy with no underwriting. The sum assured can be up to 3 times the original sum assured.
You can choose the length of coverage (from 8 to 24 years) to coincide the maturity of the policy with the final year of university, so as to take advantage of lower monthly premium and higher yield.
It is important to maximise your child’s potential. PayMy‘Uni’ plan gives you a head start in planning for your child’s tertiary education.
So, start putting aside a regular amount monthly right away. You will see your savings grow to a significant amount to meet the rising cost of education in the years to come.
Click Here if you want to know what is the cost of a 4-year university study.
Do drop me a note or contact me if you want to know more about this plan.
What makes this plan unique is that the payouts can be spread over the duration of the tertiary education – covering yearly fees and expenses.
The payouts are available in 3 convenient parts. The steady stream of funds can coincide with the years of study to cover ongoing school fees and other expenses :
* 2 years before maturity of policy: > 40% of sum assured
* 1 year before maturity of policy : > 40% of sum assured
* Upon maturity of policy : > 20% of sum assured(plus
accumulated bonuses).
To meet the needs of unforeseen circumstances, the plan also offers the following covers :-
** Waiver of all future premiums in the event of death, or total and
permanent total disability of parent.
** Payment for each day of hospitalisation and medical leave
following discharge from hospital of child.
Payment of full sum assured plus accumulated bonus upon death, total and permanent total disability, or diagnosis of terminal illness of child
Parent also can enhance the protection further with a wide range of optional covers. For example, the Enhanced Income Benefit provides additional monthly allowance to the child in the event of death, total and permanent disability or diagnosis of dreaded diseases of the parent. The Child Plus covers child’s specific illnesses.
An another attractive feature is that upon maturity, your child can continue to enjoy the assurance without hassle - your child can purchase another whole life or endowment policy with no underwriting. The sum assured can be up to 3 times the original sum assured.
You can choose the length of coverage (from 8 to 24 years) to coincide the maturity of the policy with the final year of university, so as to take advantage of lower monthly premium and higher yield.
It is important to maximise your child’s potential. PayMy‘Uni’ plan gives you a head start in planning for your child’s tertiary education.
So, start putting aside a regular amount monthly right away. You will see your savings grow to a significant amount to meet the rising cost of education in the years to come.
Click Here if you want to know what is the cost of a 4-year university study.
Do drop me a note or contact me if you want to know more about this plan.
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