When applying for insurance, the principal of utmost good faith applies. The Latin equivalent of 'utmost good faith' is uberrima fides. The principal of utmost good faith or Uberrima fides means you have to declare all material information – those you know and ought to know. If in doubt, just declare it. You cannot go wrong “over declaring” it but you can go very wrong if you do not declare it. … [Read more...]
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If an insurance company pays claims that are much less than the premium collected, does it mean the product is priced too expensive?
I saw this Facebook post the other day and I felt it is one of the most common misconception about insurance. The Eldershield is meant for old age but the pool is young and so the claims are low. However, an insurance product should not be judge based on cash flows but based on its liability. For instance, you are 40 years old and if the claim is expected to occur at 70 and ends at 80 and … [Read more...]
Question on Manulife InvestReady
Q: Wilfred, I bought the Manulife InvestReady last year. I was given 10% Capitavouchers of the annualized premium. The premium I am paying is $12,000 for 3 years. Thereafter, I was told I could surrender at no charge or simply continue with the policy without the need to pay premium. There is an administrative charge of 0.7% per year throughout the policy period and supplementary charge of 1.8% … [Read more...]
Analysis of Swiss Life Alpha and Alpha Plus – read before you buy
Swiss Life Alpha and Alpha Plus are Variable Universal Life targeted at high networth individuals who would like to have a high amount of insurance. The insurance is to be funded by any investments of their choice. In fact, it is possible to use existing investments to fund the insurance. Here is how the Swiss Life Alpha works: Let’s say the death benefit (or sum assured) required is … [Read more...]
High cost of premium waiver
Question: My adviser advised me not to include the premium waiver due to high cost. What do you think? Answer: Premium waivers are riders attached to a life policy so that upon certain insured event happening, the premium of the remaining premium period is waived. And yes, premium waivers are generally expensive. The premium waiver is actually a decreasing term. Here is an example to … [Read more...]
Tips in claiming your integrated shield plan
Know which ward/hospital you are entitled to Before your hospital admission, find out which hospital and ward your integrated shield plan is meant for. What you want to know is whether your integrated shield is meant for private or government hospitals. If your entitlement is government hospital, find out whether the policy is meant for “A” class, “B1”, “B2” or “C”. There is no such thing as … [Read more...]
PRUshield Extra A Premier pricing is just too complicated
With effect from 1 May 2017, PRUshield Extra A Premier pricing will be change to a highly complicated method that is related to the amount and the type of hospitals customers will be claiming from. Basically, there will be a whopping 7 pricing points. You go up and down the pricing points like climbing up and down from a ladder. The pricing points are (in increasing amount): Pruwell … [Read more...]
A client who spent $27,000 a year on insurances
There was an article Does it pay to stick to a big name in insurance? (Straits Times 30 Dec 2016) which asked the question whether should consumers buy from larger insurance companies in hope of getting better returns. I felt that the question is a wrong question. Insurance is meant to protect and not meant as an investment. Unfortunately, majority of the policies sold were not meant to protect … [Read more...]
Analysis of ManuRetire from Manulife distributed by DBS
ManuRetire is a retirement product that is exclusively distributed by DBS on behalf of Manulife. The ManuRetire should not be confused with another product called Manulife RetireReady which is distributed by Manulife agents , IFAs and DBS as well. In order to analyze the suitability of a retirement product, the product must fulfill two criteria: The product is required to provide a … [Read more...]
Manulife Heirloom (I) product specifications
The Manulife Heirloom (I) is a Universal Life. This policy is issued from the Manulife insurer in Singapore. You are reading this article because your relationship manger, a Manulife agent or an independent financial adviser proposed to you this product. This article provides a brief outline of the product specifications of the Manulife Heirloom. If you require more information on Universal Life, … [Read more...]
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