Dear Mr Tan,
I will be graduating next year. I would like to start saving and would like to seek your advice on what policy/plans that I could look at. I was recently introduced to take on a prulink flexi-saver plan which I am honestly wary about. My mom has a prulink assurance plan with little growth.
1.) I would like to start saving at least $200 per month and so would like to know which products i could look at purely for savings (I am risk averse and would like my capital assured)
I am really lost with all the hard-sell and the myriad of products available. Thank you.
If you are graduating and starting out in life and without dependents these are the plans you should have.
ReplyDelete1.a shield plan on top of your medishield life for enhancement.
2. go to www.comparefirst.sg to choose the best buy for a critical illness plan with the cheapest premium; eg minimum $200K with AXA (here you don't need to pay commission to those rubbish insurance agents)
3. invest the rest of your money, ie. your $200 monthly less the the premium for your critical illness plan...Assuming you are left with $150, invest in a RSP plan with an index fund or ETF.. Remember your mother's Prulink Assurance ILP is a rubbish plan . Very little of her premium is invested because her premium went to the insurance agent as commission. Maybe after the 3rd year she would see a little invested after less the mortality charge which is also very expensive. This RSP I have recommended has very low charge, only 3% off your $150 premium , leaving you $147 invested every month whcih NONE of the regular ILPs of insurance company can give.(all regular ILPs of insurance companies will rob you of ALL your first few years' premium and that explains why your mother's Prulink regular ILP not growing and possibly negative.)
4..REMEMBER YOU ARE YOUNG AND HAVE A VERY LONG TIME HORIZON AND TO GROW YOUR WEALTH YOU MUST TAKE RISK.. RISK IS YOUR FRIEND AND TO YOUR ADVANTAGE. WITHOUT RISK THERE IS NO GROWTH. AND FOR GOODNESS SAKE DON'T BUY AN ENDOWMENT. DON'T COMMIT FINANCIAL SUICIDE BY BUYING THIS ROTTEN PRODUCT. Beleive me you, OK? Dont' trust your insurance agent friend , they are not COMPETENT YET IF THEY ARE YOUR CLASS MATE FRIENDS TURNED INSURANCE CONMEN.
Remember if you are a single without dependents you don't need a life insurance that covers death. You need only a shield plan and you can upgrade to a private shield if you require and can afford a higher ward stay. And of course you need a Critical illness plan but buy term insurance with large coverage like $300K . Don't be conned into buying those scam whole life CI plan especially those scam early stage plans. Let me tell you a secret about the scam early care or stage CI plans. You won't be able to claim because early stage is VERY HARD to detect. Verify what I just said with your family doctors or all the doctors and they will tell you that there is such thing as early stage for diseases BUT very hard to detect and if detected it is very often the 4th stage which your usual CI plan can claim. So have a lots of coverage and only term insurance can give. So if it can be detected why are the insurers so keen to market a product like this? No need use your brain lah. The insurers can make lots of profits from products like this. And just use the greedy agents to peddle them with high commission
ReplyDeleteand also to scare the consumers with statistics or pay someone to testify that she has early stage breast cancer and cannot claim with usual CI plan and therefore must buy the early stage. This all the more scares the middle aged aunties and ladies into scramble for this type of plan.
Well, there is such thing as early stage although not easy to detect.. But if it happens your shield plan can take care of it, right?. How? because the cost of treatment is usually cheap and affordable and you won't lose a limb and the shield plan and medisave can take care.
Remember , the insurers are not truthful and not your charities...they are not so good hearted. They are in this business to make as much money out of you. And the insurance conmen and women too are in this business to make big bucks. Just ask your beloved and so called trusted insurance agents why are they not practising as a accountant, an engineer or even a doctor and why in this low status despicable conmen job? Again you don't need high IQ to guess the answer...it is MONEY < EASY and FAST MONEY and it makes their world go round and your world in misery and
poorer. Got it?