|Home > Let's Buzz > IM$avvy Buzz Lucky Draw [JOIN LUCKY DRAW HERE] > Week 3: 19/4/2010 - 25/4/2010|
|There are so many insurance plans offered by financial institutions out there. How did you choose yours? Tell us in not less than 50 words about your experience - did you choose a plan based on your financial needs? Are you satisfied with or relieved that you have an insurance plan? Or do you think it's necessary at all?|
|The basic foundation of my financial plan is adequate insurance cover for unexpected contingencies like premature death, permanent disability and critical illnesses. It is important to ensure that we are comfortable with the budget for our insurance plans. For most people, a general guideline is that about 10 - 20% of our income should be allocated to insurance for the protection needs. It is good to choose an insurer that has a wide range of plans and options. Most importantly, we should be comfortable with our insurance advisor to tailor solutions that fits to our budget.|
|The purpose of buying insurance is to minimise financial burdens should one loses his physical ability to bring in income. I personally think that the amount of coverage has to depend on the ages of one's dependents, household mortgage, and financial commitments. Ideally, the minimum coverage should be at least 1.5 years of one's income. Having said, he must be comfortable with setting aside the part of his income for the premiums. For me, I will usually go into a reputable insurance company and an agent I've known personally.|
|Insurance gives us the peace of mind knowing that protection needs and our loved ones are financially taken care of in the event of an emergency such as illness, disability or death. Whether we need insurance and the types of plan to purchase will depend on our needs. Premiums usually increase with age and we should start planning as early as possible.|
|you need to get one that fit your requirement and one that does not bundle you too much financially. I try to get term plan as it is more economical, and use the remaining cash for investment instead|
|I feel there is not enough transparency in the insurance market. Namely, what are the actual historical return rates, payout experience, etc by different insurers. Products out there are very complex and complicated – and only slightly less opaque than the structured financial products that got all the bad press since the financial crisis last year. There should be more legislation to compel insurers to disclose comparable data to allow clients to make informed choices. This will ensure laymen are not purchasing products that are beyond their requirements, locked into unreasonable periods, etc.|
|Insurance give us peace of mind but most importantly we treat it as saving plans. I am 53, a homemaker and my hubby is 54, retrenched. Both our sons are studying but we managed to get by. We have endowment, investment-linked policies and some single payment policies.|
|There are many types of insurance each for different purpose. But years ago when I bought my insurance I purchased the wrong one. My intention is for savings but all the insurance agents recommend me life policy. I end up holding a few life policies. Later on when I realised that I what I need is saving I could not terminate my life policies nor convert it to endowment as I would lose a lot of my premium. |
So I took up a few small endowment policies in addition to the life policies that I have.
Edited by basic6 2010-04-19 5:38 PM
|I think that a good insurance should be one that suit your needs and suit your financial needs too.Having a all coverage is good but it's very hard to find that so stick to the more common ones for starters...|
|As the Singapore saying goes - "Can afford to die but cannot afford to get sick in Singapore". For me, I feel the top 2 must-have plans are:- |
(1) Hospital and Surgical (H&S) Plan or commonly known as Shield Plan: I have an "as-charged" Incomeshield plan (w/ Rider) covering from the first dollar. It covers up to private hospital admission.
I feel this is a must-have because hospital stays can easily cost a few thousand dollars. The plan is affordable and worth the money. I wrote about this on ST Forum (Nov2007): http://www.moh.gov.sg/mohcorp/mediaforums.aspx?id=17728
(2) Critical illness coverage: I have term insurance covering Death + Terminal Illness + Critical Illness, sum assured is 10 years of my (humbly simple) living expenses. I chose term insurance because I VALUE COVERAGE over cash value in endownment/ whole life policies. If I am not wrong, I think term insurance premiums can actually get cheaper over time due to competitve reasons. I invest the difference I would have paid otherwise for a whole life policy. Basically, my strategy is Buy-Term-Invest-The-Rest (B.T.I.T.R).
As for which company to buy from, I would recommend engaging an IFA (Independent Financial Advisor) instead of tied agencies. IFAs tend to have more variety in terms of product offerings. I would normally ask for 3 quotes for comparison sake. However, do note that having 3 quotes does not necessarily guarantee impartiality on the part of the advisor. I always believe I would support an advisor with the "heart of a teacher" and not a "salesman".