You should spend as little as possible of your salary in insurance. Get sufficient coverage at the lowest cost is my advice. Therefore it is important to source for the most cost competitive cover. … [Read more...]
You are viewing articles categorised under Insurance
Since my insurance premium is huge, I am well covered right?
Most people spent huge amount of money paying insurance premium but actually they are underinsured because they bought "junk" policies. You should examine your needs and source for the solutions. In most cases, people look at the "solutions" and try to fit their needs. This is the wrong way and almost guarantees huge premium into junk policies. You may like to know that the pricing of insurance … [Read more...]
Is company’s group insurance sufficient?
Many employees are covered under their employer's group insurance. If that is the case, many employees do not feel the need to get additional insurance for themselves. The policyowner of the group insurance is the employer. The employee is merely the life assured with no legal rights to the contract. The master contract can be terminated either by the employer or by the insurer. Moreover, the … [Read more...]
Are endowment policy suitable?
Endowment policy is suitable for the individual who is conservative in risk appetite and cannot take risk. In addition, if there is a purpose which imposes on the requirement that no risk can be made, than an endowment policy is recommended. For example, tertiary education can be expensive and yet cannot be delayed once the child reaches certain age regardless of whether does the parents have the … [Read more...]
What are unsuitable insurance?
An insurance product is considered unsuitable if it meets one of the two criterions: The products does not meet one’s needs OR The product meets one’s needs but there is an alternative product that is significantly superior in terms of cost or benefits or both. The keyword is “significantly superior.” Marginally superior is not counted. … [Read more...]
Why is an ILP considered inferior/ a time bomb?
The regular premium investment linked product is an essentially a combination of 1 year renewable term PLUS investment. Since the life insurer does not provide value add service by managing the risk of the underlying investment, there is no reason to buy such a product. It will be more straightforward just to buy a separate term insurance and invest the difference (which is what an ILP does). Here … [Read more...]
How does one go about buying insurance?
It is important for the individual to understand his or her needs first. After that, source for the most appropriate solutions. Most people do it the reverse – looking at the solution (product) first and try to fit their needs. This way of doing almost guarantees inappropriate purchases. Although the only way to buy insurance is from insurance companies, empirical evidence has shown that the … [Read more...]
What is meant by pre-existing conditions in real life?
I have many clients. By the law of large numbers, I have seen cases that no one could ever imagine that could occur to them. Today, I want to talk about pre-existing conditions within the context of insurance. I always advice my clients to take insurance to hedge against the financial risk of an unforeseen circumstance. However, what is “unforeseen” to them, is foreseeable to me. In many … [Read more...]
The free Aviva Myshield for children is not worth it
One of the continuing problems I faced is with regard to Aviva’s MyShield Plan 2. Under this plan, the insured is entitled to stay in government hospital. A severe pro-ration factor will be applied if the stay is in a Private Hospital. The reason why I had so many problems with Aviva MyShield Plan 2 is because many clients bought this Plan 2 for their children as it is free up to age 20 provided … [Read more...]
Nomination in insurance policies
After purchasing insurance policies, the next concern is how the proceeds of the insurance policies would be distributed upon the demised of the life assured. How the proceed is to be distributed is important for if it is not done in accordance to the planned intention, it means that the intended beneficiaries are denied the monies meant for them and that the unintended beneficiaries receives a … [Read more...]