Last week, when news of the possible collapse of AIG reached Singapore, many AIA policy holders were fearful of losing their hard earned money. Despite the announcement that the US government was providing a US$85 billion (S$121.3 billion) lifeline loan to AIG in exchange for a 79.9% equity stake, many policyholders queued up to surrender their policies last week.
Now, after many assurances from AIA and MAS, many of these policyholders are re-instating their policies without penalty or cost to themselves, courtesy of AIA.
Last week, a few clients of mine called me if they should terminate their AIA life insurance policies. I advised them that they should not terminate their policies.
Why?
5 Reasons Why You Should Not Terminate Your AIA Policies
1) What was your objective of buying the policy in the first place? Has your objective been met? Is your insurance coverage still applicable to your present and future needs? If yes, keep it.
2) Are you still healthy now? Yes? Are you sure? All existing illnesses whether you know it or not will be excluded upon a claim, subject to the actual terms and condition of the new insurance policy. If you are not sure and have not done a full body medical check up, keep it.
3) Are you willing to pay higher premiums? The policy that you bought 15 years ago when you were a young adult will be a lot cheaper than if you were to buy one now at the same amount of insurance coverage. If you are not willing, keep it.
4) If you are using this "crisis" as an excuse to get rid of your policy, please reconsider as you may regret it if something unfortunate were to happen to you after you surrender your policy. If you are still the responsible adult, keep it.
5) If your policy matures next year, and you think that you have made some profit and feels that it is OK to get out now. STOP! You will lose all the "Maturity Bonus" which will kick in at the end of the policy term!!! This amount can be quite substantial, so do not be rash. If you want to reap a good return on your savings for the past 20 years, keep it.
If you are still not convinced, call me for a FREE review of your insurance policies so that I can give you a better picture of your insurance planning.
Monday, September 22, 2008
Thursday, September 11, 2008
Spending On Health Care 'Bound To Go Up'
According to our Health Minister Khaw Boon Wan, he said that it was unrealistic to expect national spending on health care not to increase in the future.
He noted that Singapore has managed to cap national health-care spending at 4% of Gross Domestic Product (GDP) and still achieve high standards of health care compared with the United States, which spends 16% of its GDP on health care.
But he said that spending MUST go up, with medical advances making treatments and drugs costlier together with plans by the Health Ministry to recruit more doctors, nurses and other health-care professionals to improve standards of care.
If spending on health care reached 8 to 9% of GDP, it would mean an individual would need to use some 15% of his income on medical expenses, including health insurance premiums and co-payments.
For more info read the Straits Times Thursday 11 Sep 2008 HOME page B2...
Are you adequately insured for your own health care? Not sure, let me take a look at your health insurance policies. Your needs come first when it comes to financial planning. I separate the best from the rest for you!
He noted that Singapore has managed to cap national health-care spending at 4% of Gross Domestic Product (GDP) and still achieve high standards of health care compared with the United States, which spends 16% of its GDP on health care.
But he said that spending MUST go up, with medical advances making treatments and drugs costlier together with plans by the Health Ministry to recruit more doctors, nurses and other health-care professionals to improve standards of care.
If spending on health care reached 8 to 9% of GDP, it would mean an individual would need to use some 15% of his income on medical expenses, including health insurance premiums and co-payments.
For more info read the Straits Times Thursday 11 Sep 2008 HOME page B2...
Are you adequately insured for your own health care? Not sure, let me take a look at your health insurance policies. Your needs come first when it comes to financial planning. I separate the best from the rest for you!
Saturday, September 06, 2008
Why Couples Must Be Financially Literate
In every family, many married couples divide their household chores and other family matters. The husband might prefer to do the laundry and the wife always buys the family groceries. The husband might be in control of all things car related, but the wife always do the children cloths shopping.
Handling a family's financial affairs is another one of those tasks that usually falls to husband or the wife. Sometimes there are couples who are both engaged in the family's budgeting, bill-payment, savings and investing. But in most families, these "jobs" usually fall to the husband.
If you're reading my blog, there's a good chance that you're that person in your household. Maybe you have been educated in finances, or maybe you have no choice but to be in charge of your family finances.
The key danger you run in single-handedly managing your family's financial affairs is that you could leave your spouse out of the loop. If you left the world yesterday, would he or she know how to manage the family nest egg? Even if you expect that your spouse will look for a financial adviser for help when you're gone, would he or she even know where to look for advice?
Even if you're super fit, make sure that your spouse know how to handle the following issues if something unfortunate were to happen to you.
1. Where to Find Everything
Your first step is to list what assets you have and where to find them. Even if you're not an investment junkie, you are most likely having a number of different accounts scattered across several different financial-service providers. You may have it all straight in your head, but it could seem like a confusing mess to your spouse.
Try to summarise your investment accounts as much as you possibly can. Your partner will have a far easier time managing the family nest egg when you are not aound.
It also makes sense to develop a filing system that both of you understand. Start by creating a folder for each separate account, and be very picky about what papers you keep. (Keep: Shares and unit trust statements, with trade confirmations. Throw: Annual reports, prospectuses, and marketing brochures.)
Once you've done that, list all your accounts and account numbers (remember your life-insurance policies too), the names and telephone numbers of the people you deal with at various financial institutions, and any website addresses and passwords you need to gain access to your accounts. Store this information in an safe place and let your spouse know where it is.
2. Who To Contact
Your next step in leaving your spouse well prepared is to write down a list of your important financial contacts: financial advisers, insurance agents, accountants, and lawyers. Include their names, phone numbers, and email addresses, and also write a brief description of what they have done for you, especially me.
3. Which Assets To Access First
Some of your assets can be tapped at any time, while others may carry penalties and tax implications if your spouse withdraws the money prematurely. To prevent your spouse from making a serious and costly mistake, it pays to clearly list out which of your assets are liquid and which are not. As a general rule of thumb, you'll want to keep at least six months' worth of living expenses in highly liquid financial instruments, such as money market funds and your fixed deposit accounts.
4. Where to Go for Help
If you've been an financial do-it-yourself guru but you expect your spouse to seek outside help in managing your financial affairs after you've gone, it is better to look for financial advisers who share your investing philosophy and have served clients with needs like yours. Keep in touch with me.
5. How to Learn More
Even if you expect that your spouse will consult a financial adviser after you're gone, he or she will still need a basic understanding in financial planning. A few simple investment books will impart a lot of information for your spouse. Reading my blog will also impart some knowledge about financial planning.
Handling a family's financial affairs is another one of those tasks that usually falls to husband or the wife. Sometimes there are couples who are both engaged in the family's budgeting, bill-payment, savings and investing. But in most families, these "jobs" usually fall to the husband.
If you're reading my blog, there's a good chance that you're that person in your household. Maybe you have been educated in finances, or maybe you have no choice but to be in charge of your family finances.
The key danger you run in single-handedly managing your family's financial affairs is that you could leave your spouse out of the loop. If you left the world yesterday, would he or she know how to manage the family nest egg? Even if you expect that your spouse will look for a financial adviser for help when you're gone, would he or she even know where to look for advice?
Even if you're super fit, make sure that your spouse know how to handle the following issues if something unfortunate were to happen to you.
1. Where to Find Everything
Your first step is to list what assets you have and where to find them. Even if you're not an investment junkie, you are most likely having a number of different accounts scattered across several different financial-service providers. You may have it all straight in your head, but it could seem like a confusing mess to your spouse.
Try to summarise your investment accounts as much as you possibly can. Your partner will have a far easier time managing the family nest egg when you are not aound.
It also makes sense to develop a filing system that both of you understand. Start by creating a folder for each separate account, and be very picky about what papers you keep. (Keep: Shares and unit trust statements, with trade confirmations. Throw: Annual reports, prospectuses, and marketing brochures.)
Once you've done that, list all your accounts and account numbers (remember your life-insurance policies too), the names and telephone numbers of the people you deal with at various financial institutions, and any website addresses and passwords you need to gain access to your accounts. Store this information in an safe place and let your spouse know where it is.
2. Who To Contact
Your next step in leaving your spouse well prepared is to write down a list of your important financial contacts: financial advisers, insurance agents, accountants, and lawyers. Include their names, phone numbers, and email addresses, and also write a brief description of what they have done for you, especially me.
3. Which Assets To Access First
Some of your assets can be tapped at any time, while others may carry penalties and tax implications if your spouse withdraws the money prematurely. To prevent your spouse from making a serious and costly mistake, it pays to clearly list out which of your assets are liquid and which are not. As a general rule of thumb, you'll want to keep at least six months' worth of living expenses in highly liquid financial instruments, such as money market funds and your fixed deposit accounts.
4. Where to Go for Help
If you've been an financial do-it-yourself guru but you expect your spouse to seek outside help in managing your financial affairs after you've gone, it is better to look for financial advisers who share your investing philosophy and have served clients with needs like yours. Keep in touch with me.
5. How to Learn More
Even if you expect that your spouse will consult a financial adviser after you're gone, he or she will still need a basic understanding in financial planning. A few simple investment books will impart a lot of information for your spouse. Reading my blog will also impart some knowledge about financial planning.
Wednesday, August 27, 2008
7 Ways To Save S$100
Singapore's annual inflation rate was 6.5 per cent in July, easing from record highs in the previous three months. The July rate fell from 7.5 per cent, a 26-year peak recorded in April, May and June.
Statistics showed July's consumer price index (CPI) increased primarily because of higher costs for housing, food, and transport and communication.
Some economists said inflation in Singapore is likely to moderate in the second half of this year. This will bring inflation for the year in line with the Singapore government's forecast of between 6 and 7 per cent.
With these factors in mind, I suggest 7 ways to save S$100! There will be more ways, so I welcome all suggestions.
1) Shop Around For Motor Insurance Rates
When you buy a new car or upon receiving your motor insurance renewal notice, do not assume that you are getting the best deals! Call me immediately for a new quote. My clients have saved as much as $900 after they checked with me!
2) Challenge Your Property Tax
Are you aware that you are allowed to challenge your property tax? It is not cast in stone by the tax department when you receive your new property tax bill. If your investment property had been getting a rental of $2000 (based on an old tenancy agreement signed 3 years ago) while comparable properties around your unit were getting rentals of an average $4000, you can ask IRAS to reconsider their calculations!
3) Shop For Food Bargains
Do not assume your regular shops are giving you "discounts" or "the best prices" just because you are their regular customers. Check out the weekly promos from Giant, Carrefour, NTUC Fairprice, Sheng Siong and Cold Storage. I particularly aim for Carrefour's promo on whole Salmon Fish when the price goes down to $1.10 per 100 grams. Recently I also bought 4 boxes of 750g Muesli Cereals for only $6....yummy!
4) Pay off Your Life Insurance Policy Loans
If you have been delaying the repayment on your personal loans from insurance companies, think again. You might be incurring 5.50% to 7% per annum compounded yearly!!! You should monitor the loan amount and interest closely to ensure that it does not exceed the cash value of your policy otherwise the policy will be terminated.
5) Rethink Your Holiday Plans
If you have not tried 'Free n easy' holidays and flying on budget airlines before, why not? For flights below 3 hours of flight time, budget airlines are a great way to fly. Look out for their occassional "2 for the price of 1" promos. Last year I flew my family (4 of us) to Ho Chi Minh City and back for just $720 ( all taxes included). Hotel stay was only US$34 a night for a huge airconditioned room with two King sized beds and the hotel was clean and the staff gave us great service too. It was just a two minute walk to Ben-Thah market ( Fantastic value-for-money shopping )
6) Review Your Mobile Phone Plan
With our 3 major telcos trying their best to retain subscribers, they are giving lots of incentives to keep you as their customers. Call your service provider for the best plan for you and your kids if your contracts have ended. Jump ship if they are not willing to help you, you can still retain your telephone number due the portability of mobile phone numbers now.
7) Buy Low, Sell High
Many Unit Trust investment funds have gone back to levels where they are screaming "CHEAP SALE, CHEAP SALE"!!! If you have idle money sitting in the bank earning fixed deposit interest rates of1.7% or less, you are losing your money to inflation (6 to 7%) right? Fear (emotion) instead logic (market fundamentals) is currently ruling the financial markets. It takes a brave heart to get in while others are quivering at the side lines, waiting for "signs" of recovery. Those who dare will be handsomely rewarded .
Need more details? Just write to me or give me a call. Thanks!
Well, I hope that you will be able to save lots of money with these 7 ideas and if you have more great ideas, please share with us by leaving your comments at the end of this posting. Thanks again!
Statistics showed July's consumer price index (CPI) increased primarily because of higher costs for housing, food, and transport and communication.
Some economists said inflation in Singapore is likely to moderate in the second half of this year. This will bring inflation for the year in line with the Singapore government's forecast of between 6 and 7 per cent.
With these factors in mind, I suggest 7 ways to save S$100! There will be more ways, so I welcome all suggestions.
1) Shop Around For Motor Insurance Rates
When you buy a new car or upon receiving your motor insurance renewal notice, do not assume that you are getting the best deals! Call me immediately for a new quote. My clients have saved as much as $900 after they checked with me!
2) Challenge Your Property Tax
Are you aware that you are allowed to challenge your property tax? It is not cast in stone by the tax department when you receive your new property tax bill. If your investment property had been getting a rental of $2000 (based on an old tenancy agreement signed 3 years ago) while comparable properties around your unit were getting rentals of an average $4000, you can ask IRAS to reconsider their calculations!
3) Shop For Food Bargains
Do not assume your regular shops are giving you "discounts" or "the best prices" just because you are their regular customers. Check out the weekly promos from Giant, Carrefour, NTUC Fairprice, Sheng Siong and Cold Storage. I particularly aim for Carrefour's promo on whole Salmon Fish when the price goes down to $1.10 per 100 grams. Recently I also bought 4 boxes of 750g Muesli Cereals for only $6....yummy!
4) Pay off Your Life Insurance Policy Loans
If you have been delaying the repayment on your personal loans from insurance companies, think again. You might be incurring 5.50% to 7% per annum compounded yearly!!! You should monitor the loan amount and interest closely to ensure that it does not exceed the cash value of your policy otherwise the policy will be terminated.
5) Rethink Your Holiday Plans
If you have not tried 'Free n easy' holidays and flying on budget airlines before, why not? For flights below 3 hours of flight time, budget airlines are a great way to fly. Look out for their occassional "2 for the price of 1" promos. Last year I flew my family (4 of us) to Ho Chi Minh City and back for just $720 ( all taxes included). Hotel stay was only US$34 a night for a huge airconditioned room with two King sized beds and the hotel was clean and the staff gave us great service too. It was just a two minute walk to Ben-Thah market ( Fantastic value-for-money shopping )
6) Review Your Mobile Phone Plan
With our 3 major telcos trying their best to retain subscribers, they are giving lots of incentives to keep you as their customers. Call your service provider for the best plan for you and your kids if your contracts have ended. Jump ship if they are not willing to help you, you can still retain your telephone number due the portability of mobile phone numbers now.
7) Buy Low, Sell High
Many Unit Trust investment funds have gone back to levels where they are screaming "CHEAP SALE, CHEAP SALE"!!! If you have idle money sitting in the bank earning fixed deposit interest rates of1.7% or less, you are losing your money to inflation (6 to 7%) right? Fear (emotion) instead logic (market fundamentals) is currently ruling the financial markets. It takes a brave heart to get in while others are quivering at the side lines, waiting for "signs" of recovery. Those who dare will be handsomely rewarded .
Need more details? Just write to me or give me a call. Thanks!
Well, I hope that you will be able to save lots of money with these 7 ideas and if you have more great ideas, please share with us by leaving your comments at the end of this posting. Thanks again!
Saturday, August 23, 2008
Tuesday, August 19, 2008
Where There Is A Will, There Is A Way!
"How do I distribute his assets?" a widow may ask, "I haven't a clue as to what he wanted to do with them. He just left without a word."
Is this the scenario we want to have when we, the heads of our household, depart from this world?
Leaving our loved ones suddenly without a will, is like, a Navy captain of a ship who abandoned his vessel without telling anyone his plans for the ship. Where he is heading to, what to do with the cargo in the ship's hull etc...
It will be a very traumatic experience for our survivors.
When we have a will professionally done to cover all aspects of our financial assets, we can rest assured that our loved ones will not quarrel and fight among themselves for the assets which they "think" they are entitled to.
If you don't decide for them, the Singapore Intestate law will decide for you. If a widow does not have any children, she will not get to receive all her late husband had, She will have to share 50% of his assets with her parent-in-laws. Great if she was on good terms with them. Not so great if she was at war with them.
So if you do not have a will, husband or wife, please contact me so that I can help you get one done asap professionally.
Is this the scenario we want to have when we, the heads of our household, depart from this world?
Leaving our loved ones suddenly without a will, is like, a Navy captain of a ship who abandoned his vessel without telling anyone his plans for the ship. Where he is heading to, what to do with the cargo in the ship's hull etc...
It will be a very traumatic experience for our survivors.
When we have a will professionally done to cover all aspects of our financial assets, we can rest assured that our loved ones will not quarrel and fight among themselves for the assets which they "think" they are entitled to.
If you don't decide for them, the Singapore Intestate law will decide for you. If a widow does not have any children, she will not get to receive all her late husband had, She will have to share 50% of his assets with her parent-in-laws. Great if she was on good terms with them. Not so great if she was at war with them.
So if you do not have a will, husband or wife, please contact me so that I can help you get one done asap professionally.
Saturday, August 16, 2008
Life Without Limbs
Nick Vujicic will motivate you to live your dreams and fulfill all the goals that you have set. Watch the video now! All glory to God.
"In Christ Alone"
Words and Music by Keith Getty & Stuart Townend
In Christ alone my hope is found;
He is my light, my strength, my song;
This cornerstone, this solid ground,
Firm through the fiercest drought and storm.
What heights of love, what depths of peace,
When fears are stilled, when strivings cease!
My comforter, my all in all—
Here in the love of Christ I stand.
In Christ alone, Who took on flesh,
Fullness of God in helpless babe!
This gift of love and righteousness,
Scorned by the ones He came to save.
Till on that cross as Jesus died,
The wrath of God was satisfied;
For ev'ry sin on Him was laid—
Here in the death of Christ I live.
There in the ground His body lay,
Light of the world by darkness slain;
Then bursting forth in glorious day,
Up from the grave He rose again!
And as He stands in victory,
Sin's curse has lost its grip on me;
For I am His and He is mine—
Bought with the precious blood of Christ.
No guilt in life, no fear in death—
This is the pow'r of Christ in me;
From life's first cry to final breath,
Jesus commands my destiny.
No pow'r of hell, no scheme of man,
Can ever pluck me from His hand;
Till He returns or calls me home—
Here in the pow'r of Christ I'll stand.
Friday, August 15, 2008
Never Give Up, Nothing Is Impossible.
If Tony can play the guitar with his toes, what kind of problems can bring us down?
Be blessed, motivated and inspired by this man of God.
Be blessed, motivated and inspired by this man of God.
Why Buy From Various Life Insurance Companies?
Some people wanted to buy ALL their Life Insurance Policies from ONE Life Insurance Company. Very loyal subjects indeed.
Little do they know that when it comes to a death claim, their next of kin will only be able to receive an advance payment of $150,000 per insurance company without showing the letters of probate or letters of administration. A death certificate is not enough to release all the monies in excess of $150,000 because of Section 61 of the Insurance Act below.
Death Claim - Section 61 of the Insurance Act
This Act allows an insurance company to pay an advance payment up to a maximum of $150,000 of the proceeds after claims admission to the proper claimant named as follows:
Proper Claimant means:
Executor of a Will
Widow/ widower
Parent or Child
Brother or Sister
Nephew or Niece
The balance proceeds will only be paid after the insurance company receives the Estate Duty Clearance and Letter of Administration/ Probate.
Now you know...
If you intend to insure yourself for $1,000,000, it is best to get it from a few companies instead of just one company. For example, if you insure with 3 companies, your next of kin will receive $150,000 x 3 = $450,000 upfront instead of just $150,000 from just one insurance company.
Remember, letters of probate or administration will take quite a while to get, just ask any lawyer you know.
If you want a hassle free way to get insurance coverage from 3 companies, you must call me as I am able to do it for you. No need for you to look for 3 insurance agents, just call me at 9001-1082.
Have a blessed weekend!
In financial planning, I separate the best from the rest!
Little do they know that when it comes to a death claim, their next of kin will only be able to receive an advance payment of $150,000 per insurance company without showing the letters of probate or letters of administration. A death certificate is not enough to release all the monies in excess of $150,000 because of Section 61 of the Insurance Act below.
Death Claim - Section 61 of the Insurance Act
This Act allows an insurance company to pay an advance payment up to a maximum of $150,000 of the proceeds after claims admission to the proper claimant named as follows:
Proper Claimant means:
Executor of a Will
Widow/ widower
Parent or Child
Brother or Sister
Nephew or Niece
The balance proceeds will only be paid after the insurance company receives the Estate Duty Clearance and Letter of Administration/ Probate.
Now you know...
If you intend to insure yourself for $1,000,000, it is best to get it from a few companies instead of just one company. For example, if you insure with 3 companies, your next of kin will receive $150,000 x 3 = $450,000 upfront instead of just $150,000 from just one insurance company.
Remember, letters of probate or administration will take quite a while to get, just ask any lawyer you know.
If you want a hassle free way to get insurance coverage from 3 companies, you must call me as I am able to do it for you. No need for you to look for 3 insurance agents, just call me at 9001-1082.
Have a blessed weekend!
In financial planning, I separate the best from the rest!
Wednesday, August 13, 2008
Life Insurance Claim
Many people have asked me upon a death claim due to Cancer, for example, can their next of kin claim from all their insurance policies.
My answer to them -
YES, they can, provided the insurance policies are life insurance policies.
NO, if their policies are accident insurance policies and hospitalisation insurance policies.
If you have 10 Life insurance polices ( example - Term Insurance Policies, Whole Life Policies, Endowment Policies, Investment Linked Policies, Single Premium Investment Policies ), your next of kin can claim from ALL of them.
If you have 10 Accident Insurance Policies, you cannot claim a single cent because the death was not due to an accident. It must be due to external causes of injuries.
If you have an Annuty Plan that has been paying you a monthly income, the monthly payment will stop and any balance amount in your annuity account will be paid to your next of kin.
One point that most people overlook is that when you buy 10 Life Insurance policies, it is better to buy from different insurance companies instead of buying from just one company.
Why?
I will tell you on my next blog.
You can also contact me at 9001-1082 for the answer if you can't wait!
God bless you with peace and happiness in your life.
My answer to them -
YES, they can, provided the insurance policies are life insurance policies.
NO, if their policies are accident insurance policies and hospitalisation insurance policies.
If you have 10 Life insurance polices ( example - Term Insurance Policies, Whole Life Policies, Endowment Policies, Investment Linked Policies, Single Premium Investment Policies ), your next of kin can claim from ALL of them.
If you have 10 Accident Insurance Policies, you cannot claim a single cent because the death was not due to an accident. It must be due to external causes of injuries.
If you have an Annuty Plan that has been paying you a monthly income, the monthly payment will stop and any balance amount in your annuity account will be paid to your next of kin.
One point that most people overlook is that when you buy 10 Life Insurance policies, it is better to buy from different insurance companies instead of buying from just one company.
Why?
I will tell you on my next blog.
You can also contact me at 9001-1082 for the answer if you can't wait!
God bless you with peace and happiness in your life.
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