Sunday, October 16, 2005

Pay an annuity to an injured person

Some people are injured in an accident. They are paid a lump sum as a compensation.

It is better for these victims to receive an annuity of $X a month for a certain number of years, or for a lifetime.

This ensures that the money is used for the purpose, ie medical and living expenses, and not used for other purpose, eg buy a property or speculate in investments.
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2 comments:

sharon tay said...

Excellent approach!

There is a risk of the accident victim spending the lump sum compensation in a careless manner. In the end, the individual may not be left with much.

Like what Mr. Tan has cleverly suggested – if the injured person is paid an annuity, the money can be more wisely spent.

This ensures a more steady cash inflow to the individual.

October 21, 2005 3:03 PM
askaboutlife said...

This is a sort of Enhanced Permanent Total Disability insurance policy.

Unfortunately, Income does not yet have such a policy or rider. Only Aviva, Great Eastern and Manulife have such insurance now.

I hope Income would soon launch such a product.

July 27, 2006 5:26 PM

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