testing

testing

gia - travel insurance guide

the general insurance association of singapore has recently issued a 16 page travel insurance guide to enable consumers to be better informed about travel insurance.

section a covers:

a. why the need for travel insurance
b. where to buy travel insurance
c. types of cover
d. benefits, scope, limitations and exclusions

section b expands on claims and exclusions:

a. travel delay
b. baggage delay
c. trip cancellation and trip curtailment
d. exclusions
e. loss or damage to personal effects
f. claims and
g. disputes

and last but not least, section c is on insurance premiums and specifically, the affordability of premiums.

hyperlink to gia travel insurance guide:

http://www.gia.org.sg/pdfs/GIA_TravelInsurance_FAQ_Guide.pdf

my comments:

as always, the guide is as good as it is but if in doubt, i strongly recommend that u engage a financial adviser prior to purchasing travel insurance.

testing

testing

testing

7 singapore motor insurance myths busted

Seven S’pore motor insurance myths busted
By Burn Pavement
Fri, Jun 24, 2011


By Joel Tam*


Having your car insured is a necessity in Singapore if you want to get it on the road. However, finding the best coverage at the best price can be a painful task, even more so if you're not clear on how insurance companies calculate your premiums.

This can be especially confusing when you hear fellow drivers recount their differing experiences and stories of their motoring insurance claims.

To help you understand how car insurance works, we asked Mr Andrew Tait, head of general insurance at Aviva Singapore, to shed some light on the common myths and realities of this often mystifying subject.

Myth: Red cars are charged higher premiums than other-coloured vehicles
This myth may have come about because red is associated with danger, and there are many red sports cars on the road. In reality, insurers do not ask for the colour of your car. However, relevant details that influence the premiums of your car insurance policy include the make and model of the vehicle, age of vehicle, use of vehicle, as well as driving experience and claims history of the driver.

Myth: My car insurance policy only covers me in Singapore.
Most car insurance policies actually cover Malaysia and Thailand too. If you frequently drive to neighbouring countries, you will want to pay attention to the different terms of coverage from different insurers to find out which policy works best for you. For example, Aviva's coverage extends to West Malaysia and 80km into Thailand. Moreover, we provide towing services back to Singapore if your car cannot be driven after an accident, at no added cost.

Myth: All car insurance policies are the same. I only have to choose the cheapest one.
That is definitely not true, and not all car insurance policies are the same. The terms and amount of coverage differ significantly from insurer to insurer. For example, some policies only cover damages to the car, but not medical expenses you might incur in the event of an accident. There could also be differences in the deductible or 'excess' of your policy, that is, the amount you bear before your coverage kicks in. (For example, if your deductible is $500, and the bill comes up to $6,000. You will bear $500, and the insurer will pay the remaining $5,500.)

Service level is another aspect that will differentiate insurers from each other. For instance, in the event of an accident, it would be helpful if your insurer is able to arrive on scene to provide advice on next steps, as well as take care of your vehicle if it cannot be driven. Emergency roadside assistance — such as help with a flat tyre — is also a value-added service that some insurers may provide.

While cost is also a factor for consideration for most of us, one should ensure you are comparing costs for the same type and level of coverage.

Myth: If my car is damaged in an accident and cannot be driven, my insurer will provide me with a replacement car while my car is getting repaired.
This is not necessarily the case, as not all insurers include this feature in their policy. Some might provide a transport allowance instead of a replacement car. Additionally, there will also be variants in the maximum number of days that insurers will reimburse you for transport or provide a replacement car, as well as the type of replacement car or amount of reimbursement. You will need to check the terms of coverage of your policy.

Myth: There are now insurers who allow me to buy and manage my car insurance online. But it's too much hassle
The online platform actually offers convenience and efficiency. It is available 24/7. You can browse through the available options and get a quote easily, with no pressure to buy. Moreover, online providers are able to offer significant cost savings because of the low-cost model they are operating on.

However, buying insurance online certainly isn't for everybody. For products that are more complex, or if you prefer guidance, you may find that a financial advisor is a better option.

Myth: If I get into an accident that's not my fault, my NCD can still be affected.
Different insurers differ on this. Aviva, for instance, guarantees that your No-Claims Discount will not be affected if no claim is made against you. You will need to check the terms of coverage in your policy.

Myth: Anyone can drive my car and be covered if I have comprehensive coverage.
You will need to check the terms of coverage of your policy. You may be covered for unnamed drivers, but there may be limitations, such as the age and driving experience of the unnamed driver. For example, some insurers will either not cover, or impose an additional excess, if the unnamed driver is below a certain age or has driving experience below a certain number of years.

*Joel Tam is the managing editor of Burnpavement.com. For the latest in automotive news and car reviews, become a fan on Burnpavement.com's Facebook page.

great eastern life - launch of lifesecure

great eastern life has recently launched their LifeSecure product.

what is LifeSecure?

LifeSecure is the first plan of its kind in Singapore that helps to provide for your basic needs with regular monthly benefit payouts for life when disability sets in.

key benefits:


Receive regular monthly benefits for life
In the event of a disability, LifeSecure will help to sustain your lifestyle by providing regular monthly benefits. This can help to cover the costs of special aids and equipment, home modifications to aid mobility as well as long term disabled care at home or in the hospital.

LifeSecure complements your existing disability plans by providing monthly benefits for life as long as the disability is total and permanent or a person requires assistance to perform at least two of these Activities of Daily Living (ADLs): bathing, dressing, feeding, mobility, toileting and transferring.

Affordable premiums from as low as $0.25*a day
Whether you are taking up LifeSecure as a stand-alone plan or as a rider attached to your existing Great Eastern whole life plans, our wide range of protection benefits starts from as little as $0.25*a day for monthly benefits of $1,000 and premiums continue to be level throughout your policy term, making it truly affordable.


Out-of-school disability benefit for your school-going child
LifeSecure provides for your child of school-going age between 7-16^ years old who needs to be confined at home or in a hospital due to a disability. You will receive an additional monthly benefit of $500** on top of the monthly benefit insured for your child. This helps to sustain your child's specialised needs, such as the cost of treatment, the hiring of domestic help and even for home tuition fees.

Waiver of future premiums
Future premiums will be waived when you start receiving the monthly benefits payouts, which helps to ease your financial worries as you focus on recuperation.

Receive payback benefit upon a successful claim
Following a deferment~ period, you will receive a lump sum payment of 3 times the monthly benefit or 6 times the monthly benefit insured.

Death benefit of 3X monthly payout for stand-alone plans
A lump sum death benefit of 3 times the monthly payout will be payable if death of the life insured occurs during the coverage term.

* Based on a male aged 20 years at next birthday under a LifeSecure Rider plan with coverage and premium payment term up to age 65.

^ All ages stipulated refer to age at next birthday.

** The out-of-school benefit ends when the life assured attains age 16, and is subject to a minimum of 12 monthly installments.

~ Period of 90 days or 180 days starting from the claim date, during which no benefit is payable.

disclaimer:

This blog is for general information only. It is not a contract of insurance. The precise terms and conditions of this insurance plan are specified in the policy contract.

Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable, if any, may be less than the total premiums paid.

It is usually detrimental to replace an existing accident and health policy with a new one. A penalty may be imposed for early policy termination and the new policy may cost more or have less benefits at the same cost.

my comments:

testing

testing

selling your endowment policy?

just the other day, one of the general inquiry which was directed to me from my office was on the subject of whether to sell an endowment policy. this person saw an ad in the free daily tabloid, today and came across a company which buys endowment policies and was attracted to this proclamation which says:

"Policies which are in force, lapsed, discontinued paying premiums or with outstanding loans have been sold to us for hundreds or thousands above the surrender value."

for ease of reference, u can check out the website at:

http://www.repsholdings.com.sg/selling_policy.html

my comments:

generally, any financial advisor worth his or her salt should never advise his/her propect/client to surrender an existing insurance policy. this is because any early or pre-mature termination will be detrimental to the policyowner.

and the other no-no is to take up a policy loan where the interest payable can be as high as 8% per annum.

but having made these statements, and just like any medical doctor who must see each patient individually, the financial advisor must address each and every case on the same individual basis.

for the record, i made an inquiry and was told the company is not registered with the monetary authority of singapore.

testing

testing

testing

spanking new hdb flat at $880,000.00?

when i read this piece of news, my first thought was, u gotta be kidding me, right? but no, that's exactly right!

because the prices of the latest flats, centrale 8, released under the hdb's (dbss) or design, build and sell scheme in a central location within a mature estate and in this case, in tampines ranges from $397,000.00 (for a 3 room flat) to the top price of $880,000.00 for a 5 bedroom unit.

for the same price or $750.00 per square ft, the buyer can also consider getting a private property in pasir ris or flora road where the properties are going for approximately $750.00 to $800.00 per square ft.

my comments:

i remember being offered a 4 room hdb flat at bedok in the early 70s at a mere $19,500.00 only.

fast forward to present day, a 4 room flat at centrale 8 going for $531,000.00 to $683,000.00. despite the seriously hefty price tag, i suspect there will still be a beeline to buy the latest hdb dbss units at tampines.

but what i cannot entirely comprehend is; consumers are more than willing to bust their bank to own a piece of property but when it comes to taking up insurance, the 'premium payable' is always too high.

and my point is; isn't any single human life priceless if we compare this to any tangible object, be it property or anything else?

but there is another side of the coin in terms of the choice for the premium payment mode because there are still far too many consumers going the route of taking the monthly premium mode.

this is perhaps the most punitive premium payment mode because there is a hefty penalty of up to 5% more than the annual premium payment mode.

this is not unlike getting a guaranteed 5% yearly return if the consumer has not opted to pay by the monthly premium mode.

is this surprising to me?

to be honest, no, because some of the propects/referrals/clientele i meet in the course of my business is not even aware of this 'penalty'.

readers can do me a favour and disseminate this fact to everyone they know so that many others can now opt to pay premiums by the annual mode.

testing

testing

testing

aia has notified us that the existing integrated shield plan, aia healthshield gold elite plan will be withdrawn from the market and replaced by the new aia healthshield gold max/max essential plan.

what is aia healthshield gold max/max essential plan?

aia healthshield gold max is an enhanced integrated shield plan offering protection against medical bills for a broad range of hospitalisation, pre and post-hospitalisation treatments and selected outpatient treatments. new benefits include living organ donor transplant, extended post-hospitalisation treatment for 30 critical illnesses and post-hospitalisation psychiatric treatment.

aia healthshield gold max essential plan is an optional add-on that complements the aia healthshield gold max plan by covering the deductible and co-insurance portions of the hospital bill.

my comments:
for the latest aia healthshield gold max plan, there are a total of 3 new benefits and 3 enhancements as compared to the older aia healthshield gold elite plan.

the premiums have been revised to reflect the escalation of healthcare costs or the effect of medical inflation.

generally, if we compute the total premiums payable for aia healthshield gold max plan payable from age 1 to 100 equates to a sum of $193,203.60 or approximately $19,623.00 (rounded off to the nearest dollar) higher than the older aia healthshield gold elite plan.

the highest premium to head north is for the age band of 61 to 65 which saw an increase of 12.2%.

i do not expect enhancements to shield products to end anytime soon and we can expect the other shield providers to do so pretty soon and if my guess is right, aviva should be the next to enhance their myshield portfolio.

aia - launch of hsg max/max essential

aia has notified us that the existing integrated shield plan, aia healthshield gold elite plan will be withdrawn from the market and replaced by the new aia healthshield gold max/max essential plan.

what is aia healthshield gold max/max essential plan?

aia healthshield gold max is an enhanced integrated shield plan offering protection against medical bills for a broad range of hospitalisation, pre and post-hospitalisation treatments and selected outpatient treatments. new benefits include living organ donor transplant, extended post-hospitalisation treatment for 30 critical illnesses and post-hospitalisation psychiatric treatment.

aia healthshield gold max essential plan is an optional add-on that complements the aia healthshield gold max plan by covering the deductible and co-insurance portions of the hospital bill.

my comments:
for the latest aia healthshield gold max plan, there are a total of 3 new benefits and 3 enhancements as compared to the older aia healthshield gold elite plan.

the premiums have been revised to reflect the escalation of healthcare costs or the effect of medical inflation.

generally, if we compute the total premiums payable for aia healthshield gold max plan payable from age 1 to 100 equates to a sum of $193,203.60 or approximately $19,623.00 (rounded off to the nearest dollar) higher than the older aia healthshield gold elite plan.

the highest premium to head north is for the age band of 61 to 65 which saw an increase of 12.2%.

i do not expect enhancements to shield products to end anytime soon and we can expect the other shield providers to do so as well and if my guess is right, aviva should be the next to enhance their myshield portfolio.

testing

testing

testing

money no enough?

probably many of us will have caught jack neo's movie, money no enough which was released to local cinemas on may 7, 1998 during the period of the infamous asian financial crisis*.

money has always been a subject that is close to any person's heart and for the masses of people, money or the lack of it is definitely no enough. i have just read a rather sobering study conducted by Employee Benefit Research Institute which confirms that most americans won't be able to afford retirement until age 80.

Americans earning between $31,200 and $72,500 will need to work to age 72 just to have a 50 percent chance of retiring, and those earning more than $72,500 can expect to reach age 65 to have a 50-50 shot of funding retirement, MarketWatch reports.

and it gets worse.

Many who are unable to retire will be forced to look for second jobs to make ends meet.

"Even those older Americans who are still working are looking for ways to make additional monies," says Art Koff, founder of RetiredBrains.com, which seeks to find work for older workers.

Americans should continue to save after age 65, as doing so better ensures at least some duration of a retirement.

"One of the factors that makes a major difference in the percentage of households satisfying the retirement income adequacy thresholds at any retirement age is whether the worker is still participating in a defined contribution plan after age 65," the report says.

Others agree on the need to save.

"A large proportion, certainly of baby boomers and maybe Gen Xers, are already going to be in a situation that is extremely perilous in terms of running out of money," says Jack VanDerhei, Employee Benefit Research Institute research director and co-author of the study, according to U.S. News and World Report.

"As depressing as the numbers are in my report, they would be a lot worse" if government retirement and healthcare benefits were reduced.

*from wikipedia:

The Asian financial crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion.

The crisis started in Thailand with the financial collapse of the Thai baht caused by the decision of the Thai government to float the baht, cutting its peg to the USD, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven. At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt.[1]

Though there has been general agreement on the existence of a crisis and its consequences, what is less clear are the causes of the crisis, as well as its scope and resolution. Indonesia, South Korea and Thailand were the countries most affected by the crisis. Hong Kong, Malaysia, Laos and the Philippines were also hurt by the slump. The People's Republic of China, India, Taiwan, Singapore, Brunei and Vietnam were less affected, although all suffered from a loss of demand and confidence throughout the region.

my comments:

if u accept the latest report from the Employee Benefit Research Institute, is there any reason/s to believe that the situation in our tiny red nation to be any different from the usa?

the truth of the matter is, our consumers have generally shown an almost indifferet attitude in terms of actually planning for their retirement and that's why it is my challenge and mission to 'convince' the people i meet to do so, and the earlier the better.

and the double whammy from the lack of retirement planning comes in the form of ever longer and longer life expectancy.

testing

testing

testing

testing

no, we don't need sleep especially on our rest day!

today, i had a rude awakening from my slumber at approximately 0715 hours this morning not because of the rain (which saw some areas being hit by flash floods) but due to the incessant sounding of a multitude of car horns (would u believe it?).

my curiosity was aroused and so i looked out my window and saw a convoy of 6 cars with a bmw saloon car fitted out with decorations. next, i saw a guy dressed in a matching beige jacket and pants surrounded by a photographer and another person holding a video camcorder.

it took my slow mind many more seconds to register that i was witnessing what was perhaps a wedding ritual.

my comments:

i believe many other folks must also have been awakened because what i heard being spoken (or shouted) cannot be put into words here. i myself have entertained many unholy thoughts towards the people making up the wedding convoy.

in all of my existence here on earth and in our tiny red dot nation, this is indeed the very first time that i have had my beauty sleep interupted. or perhaps the groom was in a state of delirium and this was his way of throwing in an unofficial 'invitation' for the whole neighbourhood to join in his wedding.

or perhaps he wanted to make a grand entrance and announce his wedding to whoever was within earshot of his 'wedding symphony' composed by his best buddies' car horns making up his wedding train.

or even perhaps he may hold the assumption that everyone is already up and getting on with their start of the day.

i can go on and on but what's my point of bringing this up?

well, if i relate this to my business, i have been treated much, much worst by prospective clients with anything from being super late for our appointments (the icing in the cake was with someone who 'forgot' our appointment and he was already more than 60 minutes late) to not even turning up for the appointments without so much as notifying me. but the absolute worst was a referral who pre-ordered our dinner menu and graciously allowed me to foot the bill at a classy chinese restaurant without doing any business with me. and so on and so forth.

i must confess i have had more than my fair share of very negative experiences in my entire 14 years in the financial industry and going forward, the solution may be pretty sweet and simple which is, i'll just have to exercise more wisdom in my day-to-day running of my business.

ps: if the groom and his bride should be reading this blog, allow me to wish u a lifetime of wedding bliss. and last but not least, please do not expect me to include both of u in my gift list this Christmas.

testing

top concerns for singapore insurers

top concerns for singapore insurers - new regulations, shortage of talent

in a latest survey conducted by Pwc and the centre for the study of financial innovation, singapore insurers cited regulation as the top risk concern over the time horizon for the next 2 to 3 years. The survey polled some 500 insurance practitioners across 40 countries, of which 22 were from singapore.

citing the new European Union's Solvency II* directive coupled with changes in the International Financial Reporting Standards, will also affect insurers here in our tiny red dot nation, especially those which are subsidiaries and joint ventures of european insurers.

Mr Bob Gibson, the director of the Asian Acturial Practice at PwC said:

“There are many aspects to Solvency II which also brings up other issues, for example, the impact on the need for capital, the pressure on costs, and the pressure on making investment returns with this risk captial."

Mr Gibson also said insurers here were probably a year away from full implementation of the new standards.

he said; “While many of the practices of Solvency II may be seen as an overhead, they do give the opportunity for management to raise the standard in some way, to embrace risk management."

with the new directive on Solvency II and new corporate governance standards, insurers have also expressed their concern on the shortage of talent well versed in these areas of expertise.

Mr Alywin Teh, the Singapore Insurance Leader at PwC, said,

“When those regulations come into the local marketplace, there will be severe shortage of talent (well versed in Solvency II. There will be a need to skill our people up."

there are also other risks that our local insurers are concerned with including the ability to raise capital and investment performance which are highly correlated with their international counterparts.

*from wikipedia:

Solvency II is the updated set of regulatory requirements for insurance firms that operate in the European Union. Once the Omnibus II directive is approved by the European Parliament, Solvency II will be scheduled to come into effect on 1 January 2013.

The rationale for European Union insurance legislation is to facilitate the development of a Single Market in insurance services in Europe, whilst at the same time securing an adequate level of consumer protection. The third-generation Insurance Directives established an "EU passport" (single licence) for insurers based on the concept of minimum harmonisation and mutual recognition. Many Member States have concluded that the current EU minimum requirements are not sufficient and have implemented their own reforms, thus leading to a situation where there is a patchwork of regulatory requirements across the EU. This hampers the functioning of the Single Market.

Solvency II will be based on economic principles for the measurement of assets and liabilities. It will also be a risk-based system as risk will be measured on consistent principles and capital requirements will depend directly on this. While the Solvency I Directive was aimed at revising and updating the current EU Solvency regime, Solvency II has a much wider scope.

A solvency capital requirement may have the following purposes:

To reduce the risk that an insurer would be unable to meet claims;
To reduce the losses suffered by policyholders in the event that a firm is unable to meet all claims fully;
To provide early warning to supervisors so that they can intervene promptly if capital falls below the required level; and
To promote confidence in the financial stability of the insurance sector
Often called "Basel for insurers," Solvency II is somewhat similar to the banking regulations of Basel II. For example, the proposed Solvency II framework has three main areas (pillars):

Pillar 1 consists of the quantitative requirements (for example, the amount of capital an insurer should hold).
Pillar 2 sets out requirements for the governance and risk management of insurers, as well as for the effective supervision of insurers.
Pillar 3 focuses on disclosure and transparency requirements.

my comments:

while i am not an expert to comment on the new solvency and international financial reporting standards, i share the concerns of our insurers.

while raising the bar on solvency and international financial reporting standards are rightful and desirable, my take is there should never be a case of either insufficient regulation or being over regulated. because there can be little (which carries exposure of risks ) or even too much of a good thing and the changes come with risks to the insurers themselves, like the impact on the need for capital, the pressure on costs, and the pressure on making investment returns with this risk captial."

furthermore, in the upcoming implementation of the new regulations, the industry will face a severe shortage of talent well versed in the new Solvency II requirement.

testing

dying without nok?

in an article in the straits times which cited an average of at least half a dozen elderly people usually in their 70s and 80s who die alone every month.

which makes u wonder whether these elderly folks have never married, or divorced without children or even have no relatives (the most unlikely amongst the three aforementioned scenarios).

if this is so, then it is probably logical to assume that they have either chosen to live by themselves or more likely to have been abandoned by their so-called relatives, often in nursing homes or in hospitals.

my comments:

in my meetings with my prospects/referrals/clientele, i have always strived to 'educate' them on the importance of not just wealth protection planning but to complete the wealth management pyramid as well which encompasses, wealth accumulation, wealth preservation and lastly, wealth distribution.

but sad to say, many do not view these as priority once we have completed their wealth protection portfolio.

because when it comes to a retirement plan, far too many parents have opted to place reliance on their child/ren for support in their golden years.

even if this is so, would not it be applying conventional wisdom to have another retirement plan in place?

because the reality of life is that singapore (probably one of the few countries in the world) has already enacted a maintenance of parents' act on november 02, 1995 which amongst other things specify that:

"Any person domiciled and resident in Singapore who is of or above 60 years of age and who is unable to maintain himself adequately (referred to in this section as the parent) may apply to the Tribunal for an order that one or more of his children pay him a monthly allowance or any other periodical payment or a lump sum for his maintenance."

so my point is, what if the worst case scenario happens when your child/ren decides to abandon u in your golden years?