Tan Kin Lian's Blog: CPF Life

Monday, October 19, 2009

CPF Life

Please refer to the explanatory booklets on CPF Life that can be downloaded from the CPF website. It explains how the various options work. If you have any detailed questions, please ask the CPF Board. I can only give general advice about the merits and disadvantages of this scheme.

10 comments:

Anonymous said...: According to the MSM, more than ten thousand people have signed up for CPF Life (not sure out of how many though). This is a major decision for a lot of people. CPF Board may give us the technical details but a lot of people need help to make the right decision. It would be great if someone can come up with a list of things that one should consider before jumping into CPF Life - remember there is no turning back once you are in.; October 19, 2009 10:47 AM
Anonymous said...: I prefer the LIFE Income Plan which gives the highest payout but I will not sign up for it. This is because if I die between 55 and 65 years (start age of payout), not a single cent will be returned to my immediate family even though I have not received any payout yet. It is too risky to take up this option. CPF should refund full premium if a member passes away before any payout is made.; October 19, 2009 12:17 PM
Anonymous said...: For those who wish to make comparison between CPF Life and Minimum Sum Scheme before making the commitment, I recommend the following article:
http://www.ifa-sg.com/cpf-life-how-it-works/; October 19, 2009 12:33 PM
Vincent Sear said...: I think that the introduction of CPF can be used as a good booster to fee-based IFAs. For those who can't decide which plan to choose, they can see an adviser to review their circumstances and pay a reasonable fee. Remember, whichever plan one choices, once chosen, no change is allowed. I think that it pays, not costs, to ensure a wise choice.

Of course, for those with technical proficiency in financial matters, they should be able to figure it themselves without paying for external help.; October 19, 2009 2:01 PM
Anonymous said...: For those who have medical problems should consider the lowest payout as they do not known when they will die and can still leave the balance to their children.

For those who are healthy and/or with no children should consider the highest payout since they can live so long.; October 21, 2009 10:22 AM
Anonymous said...: Hi Anon, Oct 21, 10:22AM

My two cents worth of opinion: those with chronic illness(es) of age 55 years and above should NOT consider lowest payout. Doctors' fees and medication increase all the time. Even the elderly who only visit polyclinics may not be exempt although their consultation fees may be 50% less than normal adult charges. Their monthly payout may/may not be enough depending on amount they have in RA.; October 21, 2009 4:45 PM
Vincent Sear said...: To: Anon 4:45PM

I'd like to point out that CPF Life is a longevity insurance, not a healthcare insurance.

That's over to Medisave, MediShield or even ElderShield.; October 21, 2009 7:42 PM
Anonymous said...: REX comments as follows,

I found Oct 19 12.17 's post quite a shock. I didn;t know that. I think it wasn't too well explained in the newspapers or cpf site on this critical point. (Too much emphasis was cast on selecting which one out of the 4 options. That i am quite familiar with, no further elaboration need be made.)

The critical point mentioned in Oct 19 12.17 post was that IF YOU DIE BETWEEN 55 AND 65 YEARS OLD, ALL YOUR CPF MONEY IS GONE, once you opt into any of the 4 plans!!! It seems that most people think they won't die between 55 and 65 years old (they believe in the statistics). I think the govt should really make a point to ask the cpf'ers to please go see a doctor first before even committing to the second stage of selecting one of the 4 options. Whilst we may seem healthy, a check up at a doctor may turn out other vital information which could make one consider seriously whether one could survive till 65 years old. It would be very sad if you are 64.9 years old and you have $100,000 committed into one of the CPF four plans, and you conk out. All the $100,000 is gone!! As a word of general advice, i think anyone who smokes regularly probably be aware of the fact that all the cpf money is gone if one dies before 65 and the money is pledged into the cpf life. Thank you to the poster of OCt 19@12.17 pm for highlighting this point!

REX; October 22, 2009 11:21 AM
Anonymous said...: To: Vincent Sear & All,
From: Anon 4:45pm

CPF Life Lowest Payout, MediSave & MediShield - 2 Main Points:
1) Enough in MediSave to cover last days.
2) Lowest Payout - Make sure monthly payout enough for illness like H1N1, emergency needs when polyclinic is closed.

A Senior Citizen opting CPF Life Lowest Payout must know if MediSave has enough to cover MediShield Premium, esp for longevity people in older age group, premiums can eat up MediSave. If can successfully budget to use MediSave for comfortable last days so much the better. So much for MediSave. That's my two cents worth of opinion for MediSave and MediShield.

An annuitant in poor health living on lowest payout must have enough for extra expenses,e.g. H1N1 in addition to enough for chronic illness. Be prepared for extra charges at the neighbourhood doctor's at night or public holidays when polyclinic closed. Is there a need to take a taxi or call an ambulance.; October 22, 2009 3:43 PM
Anonymous said...: Income Plan is meant for people WITHOUT ANY BENEFICIARIES, NO SIBLINGS, NOBODY AT ALL to bequeath to in the event of death. So if anyone choosing this plan should bear this in mind.
This plan pays the highest.If you have someone in mind to give away choose one with refund . How much refund will depend on many things. Seek a competent and honest adviser to help you with the decision but DON"T ask help from insurance agents.They will NOT tell you the truth because if they tell you the truth they can't sell you their private annuity.
Those with existing annuity using CPF to buy go get a review to see if termination is to your advantage and switch to CPF.Likely you will be better off.

The Watchman; October 25, 2009 12:19 AM