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22/05/2021

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08/10/2020

Understand More About MediShield Life Provided By Government.

MediShield Life is a basic health insurance plan, administered by the Central Provident Fund (CPF) Board, which helps to pay for large hospital bills and selected costly outpatient treatments, such as dialysis and chemotherapy for cancer.

03/10/2020

5 Reasons Why Everyone Should Have Life Insurance

Life insurance is one of the best ways to leave a significant amount of money for your family in case you die unexpectedly. If you are the sole earning member in your household, your life insurance policy will protect your kids, parents, and partner by transferring the risk of not having a stable breadwinner.

Life insurance companies sell hundreds of policies throughout the year. This shows how crucial life insurance is for everyone. Buying life insurance has multiple benefits that you may not know.

1. Investment value
Whole life policies work differently compared to term life policies. The former combines your coverage benefits with your savings account instead of offering a lump-sum amount after you die. These policies consist of two parts: one, where premiums build your cash value, and second, the compensation for accepting the insurance risk. Your cash value grows as you keep paying your premiums. It leaves your family with a guaranteed amount of cash from the insurance company after you die. Plus, they can use your savings from your bank account.

2. Transfer of risk
The death of a breadwinner in the family is a catastrophe as it puts everyone in the position of a significant financial crisis. If you don't want your family to sink in an ocean of financial troubles after you die, get a life insurance policy. Traditional life insurance policies involve paying your family a lump-sum amount that you had insured while buying the policy. It successfully transfers the risks of not having any money to getting a handsome amount of cash that can keep your family afloat for months or even years.

3. Tax benefits
Usually, insurance companies reinvest your premium amounts in stocks or bonds to make money. On the flip side, you can enjoy a tax-deferred savings account. This will allow you to save more as your savings account will not be taxed annually.

4. Structured savings
There are two advantages of purchasing a whole life insurance policy: first, your family will not run into financial troubles if you die suddenly. Secondly, you get to enjoy higher savings and earnings at the same time.

5. Life insurance as collateral
You can use the cash value of your life insurance as collateral. Financial institutions consider life insurance cash value as a hard asset. You can take out a loan if you want, using your life insurance policy.

This facility is beneficial if you want to buy a car or a new house. You can use your life insurance policy's cash value as a down-payment to withdraw money for your new home or car.

Life insurance provides you with a fixed system to save money. Many families cannot make ends meet, let alone build a significant bank balance. But with a whole life insurance policy, you will have enough money in your bank once the policy period comes to an end. Consider life insurance as your primary source of savings. Additionally, it will also provide your family with enough money to survive after you die.

03/10/2020

https://sso.agc.gov.sg/Act/IA1966?ProvIds=pr2-

03/10/2020

https://www.channelnewsasia.com/news/business/more-selling-their-insurance-policies-in-secondary-market-for-13152264

Companies that purchase insurance policies on the secondary market are reporting a rise in the number of people selling off their policies, as COVID-19 hits budgets and spending. Michelle Teo reports.

03/10/2020

Before you buy: Things to look out for
Before committing to an insurance plan, run through this checklist to make sure you know what you’re buying.

Can you afford it?
Life insurance policies are long-term commitments. Make sure you buy what you need and what you can afford. It could be a costly mistake if your policy fails to meet your expectations or gives you insufficient coverage when you need it the most.

Some life insurance policies build up cash values over time. If you cancel or surrender such policies before maturity, the cash value that is payable to you may be zero or less than the premiums paid.

Remember, you'll have other expenses and financial commitments. If you're unable to keep up with the premiums, your insurance policy may lapse or be terminated.

Is it a bundled product?
Some life insurance products, such as whole life or endowment participating policies or investment-linked plans (ILPs), have a savings and investment element bundled together with insurance protection. These are known as bundled products. They cost more than pure insurance protection products for the same amount of coverage.

If you don't need to build up cash values (and prefer to invest in other financial products yourself), buy term insurance.

If you want insurance with investment features, make sure it covers your insurance needs first. Part of your premiums will pay for insurance coverage and the rest will be invested (after meeting specific charges).

If you wish to keep premiums low, do not accept lower insurance coverage in return for building up cash values — or your dependants may not be adequately protected.

What about short-term policies?
Some policies may be of a shorter term or meant to be renewed upon expiry. Such policies may not guarantee automatic renewal. Also, you need not renew the policy with the same insurance company. Consider if your needs are sufficiently met by these type of policies. Shop around to see if you can find better terms somewhere else.

Can you switch policies?
If you're thinking of replacing a life or health insurance, make sure the new policy covers all the same conditions as your previous one.

Your health may have worsened since you bought your old policy. Check to see that your current medical or health conditions are not excluded in the new policy before terminating your current policies.

Do you know what you're signing?
Never sign blank or incomplete forms. Do not give your NRIC without first clarifying why it is needed.

Be careful of verbal promises and guarantees of high returns. Insist on written confirmation before committing to buy a product.

Have you disclosed everything?
You must disclose your details truthfully in the application form. Ask if you are not sure of whether something needs to be included. If you spot inaccurate or missing information, you must ask for the document to be amended immediately before you sign.

Do not accept an insurance policy based on inaccurate or missing information. It could lead to the policy being voided (or invalidated), and the insurance company will not pay out in the event of a claim.

Check with your insurer if and when you need to tell them of changes in your circumstances.

03/10/2020

How insurance works
Here's how the insurance process works:

1. Assess your needs and choose a policy
The first question to ask yourself is, do you need insurance at all? If you're unsure, take a look at what you have now — your work, life, family and everything you worked hard for. Which part of it do you want to protect if something untoward was to happen to you? Your answer can lead you to the type of insurance you need.

Your insurance policy is a contract that lists exactly what you want to protect against. For example:

Death of the breadwinner
Total and permanent disability
Critical illness
Loss of belongings
Damage to your car
Damage to your house