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Insurance company have evolved many times over the years. It used to be just offering temporary protection. But now, it can provide whole life protection and the plans can even come with cash value. So at least in the future, if you don't need the coverage you can still get back some money or even make money.
Plans like whole life plan or investment link plan are more focus towards protection and yet they have savings component as well. So in the future you can enjoy the cash value when you don't need the protection anymore. Usually for this kind of the plan, the break even point is about 15 years, so if you surrender the plan after that period, you should expect to get back all the premium you have paid or even get more including the bonuses declared.
But plans like endowment or retirement (annuity) plan, they are focus on accumulation of wealth. Thus usually have no or little protection. These plans will give you good return (usually more than the bank's interest rate) if you keep the plans until the maturity period.
Is this a plan that you should consider?
A definite yes for everyone, from young to old.
Some of the plans that are available in the market:
1. Whole life plan - Usually pay for certain number of years and you receive lifetime protection plus the cash value. The cash value will consist of guaranteed portion and projected bonuses. This plan has less risk but conservative return.
2. Investment link plan - Usually pay for certain number of years and you receive lifetime protection plus the cash value. The cash value is totally non guaranteed as it depends on the performance of the funds that you choose. This plan has high risk but higher potential return.
3. Endowment plan - Usually pay for certain number of years and you receive some protection during the endowment period. By the end of the period, you will receive all the cash value. The cash value will consist of guaranteed portion and projected bonuses. This plan has moderate return.
4. Retirement plan - Usually pay for certain number of years and the insured will receive monthly/annual pay out from certain age (E.g. age 65) until the insured reach certain age (E.g. age 85) or the insured passed away. The plan may payout lump sum bonuses as well at some point so the insured can enjoy more money during retirement. The cash value will consist of guaranteed portion and projected bonuses. This plan has moderate return.
Tips: When you save, really save a good amount so that you can live and reach your dream goals.
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Plans like whole life plan or investment link plan are more focus towards protection and yet they have savings component as well. So in the future you can enjoy the cash value when you don't need the protection anymore. Usually for this kind of the plan, the break even point is about 15 years, so if you surrender the plan after that period, you should expect to get back all the premium you have paid or even get more including the bonuses declared.
But plans like endowment or retirement (annuity) plan, they are focus on accumulation of wealth. Thus usually have no or little protection. These plans will give you good return (usually more than the bank's interest rate) if you keep the plans until the maturity period.
Is this a plan that you should consider?
A definite yes for everyone, from young to old.
Some of the plans that are available in the market:
1. Whole life plan - Usually pay for certain number of years and you receive lifetime protection plus the cash value. The cash value will consist of guaranteed portion and projected bonuses. This plan has less risk but conservative return.
2. Investment link plan - Usually pay for certain number of years and you receive lifetime protection plus the cash value. The cash value is totally non guaranteed as it depends on the performance of the funds that you choose. This plan has high risk but higher potential return.
3. Endowment plan - Usually pay for certain number of years and you receive some protection during the endowment period. By the end of the period, you will receive all the cash value. The cash value will consist of guaranteed portion and projected bonuses. This plan has moderate return.
4. Retirement plan - Usually pay for certain number of years and the insured will receive monthly/annual pay out from certain age (E.g. age 65) until the insured reach certain age (E.g. age 85) or the insured passed away. The plan may payout lump sum bonuses as well at some point so the insured can enjoy more money during retirement. The cash value will consist of guaranteed portion and projected bonuses. This plan has moderate return.
Tips: When you save, really save a good amount so that you can live and reach your dream goals.
Accident insurance
Accident insurance provides you with financial assistance for accident related events.
It is basically a plan that combine life, disability and health insurance into a single plan and the benefit will be paid out in the event of accident.
So usually it will cover accidental death or disability, provide medical reimbursement due to accidents such as fall, slip, sport injury*, insect bite, food poisoning, etc. On top of that, it also provide dismemberment benefit which will give a pay out if let say a person lost a finger (so it actually covers all your body parts from head to toe).
Accident plan is good because everyone can participate regardless of their health and it will boost the overall insurance coverage at a very low cost.
Is this a plan that you should consider?
For single: Yes.
For married couple: Yes.
For family with children: Yes.
For retiree: Yes, as they are prone to accident such as fall.
As this is a very low cost plan, it is suitable for anyone.
Some of the plans that are available in the market:
1. Personal accident plan.
2. Children accident plan.
Tips: Try an accident plan, regardless of the coverage amount. You will find it useful in claiming for the small stuffs.
Health insurance
Health insurance is the most important insurance plan!
It is basically a plan that will cover all your hospital related bills when you are hospitalized. That is why it is important to get a hospital plan that is relatively high in coverage as the bills are very hard to predict due to the rising cost of hospitalization.
Hospital plan can range from the most basic (which might cover only the hospital bills incurred when you are in the hospital) to the most comprehensive (which can cover even pre and post hospitalization, outpatient treatments, dental, maternity benefit, etc)
Is this a plan that you should consider?
For single: Yes, it's a must.
For married couple: Yes, it's a must.
For family with children: Yes, it's a must.
For retiree: Yes, it's a must.
This is the plan that everyone should have. There is no reason not to have it.
Do you know that majority of personal bankruptcy are caused by high medical bills that they cannot afford when they are hospitalized?
Some of the plans that are available in the market:
1. Local hospitalization plan (which cover the country you lived in).
2. Worldwide hospitalization plan.
Tips: Aim for at least $500,000 yearly coverage for your health insurance.
Critical illness insurance
Critical illness insurance gives you the privilege to take time off from work and focus on recovering by getting the best treatment in the world.
It is basically a plan that will give you a pay out in the event critical illness being diagnosed. There are usually about 30 critical illnesses listed, with the most common claims come from cancer, heart disease and stroke.
Most people will use the cash pay out to get newly developed treatment or medicine that may not be covered under the hospital plan. Plus hospital plan usually only cover you when you are in the hospital. Once you are discharged, the continuous treatment associated with critical illness may not be covered. Thus the pay out can be use for that as well.
2 types of critical illness definitions:
-Major stage = Benefit will be paid out in the event the insured is diagnosed with major stage critical illness (E.g. Cancer stage 3).
-Early stage = Benefit will be paid out in the event the insured is diagnosed with early stage critical illness (E.g. Cancer stage 1).
To claim from "early stage" critical illness plan is easier compared to "major stage" critical illness plan.
Is this a plan that you should consider?
For single: Yes if possible.
For married couple: Yes if possible.
For family with children: Yes if possible.
For retiree: Yes if possible.
Why did I said "if possible"? It is because critical illness plan does not come cheap and especially if you want to cover the "early stage" critical illness. So once your hospital plan is already in place, the critical illness plan will definitely be a good complement if you have the budget.
Some of the plans that are available in the market:
1. Normal major stage critical illness plan.
2. Comprehensive critical illness plan (can cover from early stage to catastrophic stage).
Tips: Aim for at least 3 times of your annual income for your critical illness coverage.
Disability insurance
Disability insurance might be one of the most important plan for the working people.
It is basically a plan that will give you a payout in the event of disability. The payout it self can be monthly or lump sum depending on the plan.
3 types of working disability definitions:
- Any occupation = Benefit will be paid out in the event the insured is unable to perform any occupation and earning any income for indefinite time to come.
-Suited occupation = Benefit will be paid out in the event the insured is unable to perform the suited occupation, which is the occupation based on the past experience, education or training (usually based on what the insured do for past 5 years).
-Own occupation = Benefit will be paid out in the event the insured is unable to perform the current occupation.
To claim under "own occupation" is the easiest whereby under "any occupation" is the hardest.
So what about those people who are not working? For them, it will be based on "Activities of Daily Living (ADL)". If they are unable perform usually 2 or 3 from the 6 ADL, then the benefit will be paid out.
The 6 ADL are transferring, mobility, feeding, washing, toileting and dressing.
Of course if someone lose their limbs (E.g. 2 arms, 2 legs, 2 eyes, combinations), this will be instantly considered as total permanent disability.
Is this a plan that you should consider?
For single: Yes.
For married couple: Yes for both.
For family with children: Yes for both.
For retiree: No, as disability plan usually ends at age 65.
Some of the plans that are available in the market:
1. Normal total permanent disability plan.
2. Comprehensive disability income plan.
Tips: Aim for at least 10 times of your annual income for your disability coverage.
Life insurance
Life insurance is one of the most basic insurance plan.
It is basically a plan which will cover your life so that in the event of death, the sum assured will be paid to your beneficiary.
Is this a plan that you should consider?
For single: Yes if you are already working and you have dependents that you financially support (E.g. Elderly parents). Otherwise, no.
For married couple: Yes if you have dependents that you financially support (E.g. Spouse, elderly parents). No if both couple are working and there is no dependents.
For family with children: Yes to both husband and wife, even if the spouse is a not working.
Retiree: Yes if the spouse or children still need financial support. Otherwise, no.
When I said no, it does not mean you should not get it. It just means that other plan might be of higher priority.
Some of the plans that are available in the market:
1. Term plan.
2. Whole life plan.
3. Investment link plan.
4. Universal life plan.
There is no one best plan as everyone's situation is different, therefore a combination of plans might even be suitable for you.
Tips: Aim for at least 10 times of your annual income for your life coverage.
Tips
3 tips on insurance planning:
1. Decide what you need and what you want for your self and your loved ones.
2. Plan as early as possible because unexpected things may happen whether you are prepared or not.
3. Again, plan as early as possible because many advantages will be on your side. This means you will enjoy lower premium (if you buy at younger age), full insurance coverage (if you are in perfect health) and longer time to accumulate your wealth.
Simple isn't it?
Plan before you need it, because when you need it you may not be able to get it anymore.
Thank you. Have a great day always, everyday!
Welcome
Hi families, friends and colleagues,
Do you know that the foundation of any financial plan is a sound and solid insurance planning?
By insuring your future today, you and your family can enjoy life without worry of any financial burden when the unexpected happens.
It is never just about the products, insurance is a "gift of love" for your self and your loved ones.
Our greatest joy is always when families are financially secured and they can focus on taking care of what is important to them. We want them to live their life with peace of mind.
Feel free to browse through this website to learn a little bit more about insurance planning and please contact us so that we can be with you every step of the way to create your own personalized "gift of love".
Thank you. Have a great day always, everyday!
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