- Buy 25 year term assurance for 5 to 10 years of your salary.
- Opt for SAF group insurance or other similar group insurance or personal accident insurance
- Buy insurance for your vehicle (compulsory) and for your home (optional for HDB flat).
- Buy MediShield insurance, but it is all right to be self-insured
- Invest your savings (15% to 25% of your earnings) in a low cost investment fund
- Avoid all types of high cost life insurance policies (i.e. no need to spend time to study them)
- Get three quotes for your insurance directly from the website of insurance companies
There is no need to attend a talk to learn about the different types of life insurance polciies, as most of these products are high cost and not suitable for consumers. Apart from term or accident insurance, it is better to have adequate savings in a low cost investment fund that can be withdrawn in an emergency, without any loss.
But I am now planning a FISCA talk on the following types of insurance: motor, fire, personal accident, term insurance, Medishield, private Shield, Eldershield, CPF Life, home protection (for HDB flats), depedent protection (under CPF). I need a knowledgeable person to work with me on these topics by searching the internet. If you are interested, send e-mail to kinlian@gmail.com
4 comments:
Well said Mr Tan!
Dear readers,
Ever wondered why ALL government mandated and/or supported insurance are TERM? Insurance such as car insurance, medishield, dependant's protection scheme, home protection scheme (if you use CPF to service your mortgage).
If participating plans such as wholelife and endowment is so good, how come don't have car insurance with cash value? Imagine you pay $8,000/yr for "cash back" car insurance --- get back all your premiums in 20 years! Shiok right? Some more if you need money can borrow against your cash value at 6% interest. Lagi more shiok!!
Hi Mr Tan, what are the suggestions for low cost investment fund?
Mr. Tan,
just tell consumers , once and for all that these products popular with insurance agents are rotten products.
They are
1.wholelife and worse , limited payment wholelife
2.endowment and worse anticipated endowment disguised as cash backs, coupons or dividends and limited payment endowment with cash backs.
3.regular ILPs
4. universal whole life
5.universal variable wholelife
The latter 2 are still not peddled to the masses as yet but beware of them.
Tell them you have no vested interest in these rotten products.
If they insist to be conned by agents that is their business.
You will be wasting your time repeating them again and again.
Politely tell them to buy your book and learn about these rotten con products.
Actually, I wouldn't recommend group term insurance. It might be cheaper but the policyholder is not you; it is the employer (i.e. SAF, SAFRA, etc.) This means that the terms-and-conditions can change anytime. It's best to own the policy through individual term insurance.
Post a Comment