Thursday, January 05, 2006

Save $50 to $200 on your motor insurance premium

We compared the motor insurance premium for 10 popular models charged by NTUC Income, company A and company X. These are the three largest motor insurers in Singapore.

The comparisons are shown in

The premium rate for NTUC Income are between $50 to $200 cheaper than the two insurers.

Our policyholders can enjoy the further 10% discount, as follows:

- discount of 5% when they insure directly with us
- discount of 5% when they insure with us for three years or longer.

You can save a lot of money every year, by insuring with NTUC Income. We hold a 40% market share. Many people like our attractive premium rates, good service and convenience (ie report accident at Idac center and let us take care of the repair).

Refund of annuity are subject to estate duty

Someone asked me if the refund of capital on a life annuity is subject to estate duty.

The answer is "yes". It forms part of the estate. But, the refund is likely to be less than the invested capital (as the capital is reduced by each payment). If the annuitant dies after 15 years, the refund will disappear.

Some life annuity does not have a refund feature, and pays a higher amount.

Similarly, any gift made during 5 years before death is also subject to estate duty. Most people will live more than 5 years after making the gift, if they do it at a younger age.

I advise people - make your gift earlier when you are not too old. It will be more useful to your children when they start their own family or buy a house. If you do not wish to give them a lump sum, buy a term annuity so that your gift is given to them in installments.

Increase regular savings

In a recent survey, I was surprised to learn that 50% of people in the age gropu 40 to 55 wants to increase their regular savings.

This suggests that many people realise that they have inadequate savings for their retirement needs.

I thought that this group is likely to be squeezed by the cost of living, medical bills, repaying loans, and sending children to university.

But, they must have taken these factors into account, and decide that they need more savings.

What is the best plan to meet this need?

It is the ideal plan from NTUC Income:

- 100% of savings is invested from first month

- invested in the combined fund: large, well diversifed, low charges, attractive return

- cost of insurance protection is low, use the decreasing term assurance.

I hold educational seminars every two weeks. Call 6877 3366 to register.

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