Financial Planning towards retirement

Hope everyone is keeping well as we are into the 2nd year of the challenging Covid-19 period.

Just like to update on the blog after not doing so for past 2 years, not because of Covid but what is to be written has been written all these past years.

Financial Planning in that you should look into your protection needs first before going into asset building and legacy planning as the years go on. 

Start doing it early, notice I did not say plan early, many will look into plans but procrastinate and never really get to do it because they are still looking for the best yield and best deal, well look for reasonable plans, and consider. Best is to establish a good relationship with your trusted agent or financial consultant, though I want to say look into what the consultant himself plan for himself and family and this will probably be good for consideration, (if the consultant has been around long enough).

As the saying goes, FAIL TO PLAN, PLAN TO FAIL or JUST DO 

Perhaps is good to consider drawing a timeline to gather one's assets and plans or to plan along the timeline to see where the gaps are. Or perhaps a spreadsheet to gather even bank accounts, CPF account, and other investments, and you should be able to see how well positioned you are forward, and where to plug the gap. CPF Life with FRS and ERS scheme are good to consider for part of retirement needs. 

As I have written, it is prudence and being practical and to build along the years forward. 

Just my personal sharing as one works towards enjoying a fruitful retirement. 

I just cleared my cupboard and realized we have between me and wife 100 over policies with many matured along the years.

Timeline planning to retirement

Many of us are not sure of our retirement ahead, some have some don't have, worst is some have but never gather what they have and think they don't have. Sounds complicating if you refers to the timeline planning charts.

Scenario 1 - This person actively plan with SRS to have the plan accumulate to age 60 ~ 65 and convert it to 20 annual payments on each policies, this form a stream of income for 20 years ahead, and lots of income tax has been saved along the years.

Scenario 2 - Plan for some maturities in between as well as investing SRS in plans for retirement income ahead.

Scenario 3 - As and when you have funds plan for maturities ahead.

Time line planning is simply plotting a line to meet your expectation ahead as well as to plot your assets to see what lies ahead for you.

Will be interesting to start doing reviews ahead.

Postings has to stop due to eyes of compliance

I have decided not to post or write too much due to compliance issue. Whatever can be written has been written, gone are the days when you can write honestly.

CPF Life - Standard, Basic and Escalating (2018) Plans

I went to the CPF Life Estimator to input my own data for $166,000 RA. The result is as follows.

Initial monthly payout at 65 　

Standard Plan - $1,205 - $1,315 (More for self)

Basic Plan - $1,094 - $1,198 (More for loved ones)

Escalating Plan - $946 - $1,043 ( More for the future)

You can see that the payout difference between Standard Plan and Basic Plan is marginal but the bequest from the chart is huge. (refer next post on CPF Life Bequest )　

This confirms my decision that I will opt for Basic Plan at age 65. Do look at the chart as worked from the CPF Life Estimator.

CPF Life bequest

CPF Life bequest - bequest is amount pass to beneficiary in event of premature death.

 

I input my profile and $166,000 from RA into CPF Life Estimator in CPF website.

In this case, I input death at age 75, take a closer look and you will understand my decision for Basic Plan because what is left to family is so much more. A difference of about $90,000 between standard and basic.

Logic is payout difference between Standard and Basic is about $200 per month, $2,400 a year and 10 years it is total $24,000 more received for standard plan over basic, but the bequest if conked, family received so much more for Basic Plan.

And I have decided to "upsize" to ERS $249,000. The amount of bequest would be larger.

By age 65, if you forget to choose, by default it will be on Standard Plan.

Why pay more, why pay so long ?

IN the course of last few weeks, client and some parents asked me about some savings plan their young adult children has signed up.

This is not new, many walk past road show at MRT or malls and was talked into savings plan.

Nothing wrong with savings plan, but it is not priority, but young person with low interest environment are prudent as most just want to make their money grow than letting it rot in the bank.

If endowment plan is a consideration, then really need to consider, if you take a 20 years savings plan, you need not pay 20 years premium to maturity.

There are plans that you pay 5 years premium for 10, 15, 20 years maturity or even plan a specific year for maturity.

You may even choose a longer premium term like 10 years or 20 years.

There is no necessity to pay all the way, by shortening premium term, there is a discount factor and you pay lesser in total.

Paying full term premium may not be the best solution if you can pay a little higher. Paying full term premium is to whose interest, I need not explain here. Commission is higher.

Finishing paying the premium early allow you to review with budget for the need plan as it goes along.

Strange why many would take up a plan than come talking to me, some too late as commitment has been made :)

Are you positioned for retirement ?

How well are you positioned to retire?

A timeline to plot your assets and for planning forward to achieve your goal is essential. How many of us have plotted our assets position to know if we are well positioned forward or to use it to plan for retirement. This is timeline I have been writing about for years in my blog.

Retirement planning do not start at retirement but now, way before you even think about it.

 

 

IB Standard Plan B - Know when you should not upgrade

I was offered to upgrade to IB Standard Plan B for my mother.

My mum is on kidney dialysis thrice weekly , if I have no knowledge of this newly IB Standard Plan B.  MOH has worked with Integrated Shield Plan insurer to launch this plan from May and accepts the so call upgrade the financial impact will be great on me.

Limit for outpatient dialysis treatment for my mother's current old Plan B is $2500, on upgrade will be increased to $2750 and slap with 65% pro-ration because there is no restructured dialysis centre in Singapore except inpatient in hospital and  those run by VWOs. If a patient is not qualified to be subsidized under NKF or KDF, the patient has to seek PRIVATE outpatient kidney dialysis treatment.

This will be disastrous. I have fedback on this to MOH before it was launched, on this "flaw" but the officer just fail to see this ground problem. If you have friends with diabetes or kidney illness do not "upgrade" if there is possible future kidney failure..

Perhaps for those who are healthy Enhanced Shield Plans should be considered.

Unless someone can understand my point there is not going to be any change and I do not have another 20 years to fight for this issue. This matter can only be improved when more people can understand my concern that there is no restructure kidney dialysis centre in Singapore as most are run privately or unless in future there will be restructured outpatient dialysis centre introduced, which I hope will happen.

But if you are upgrading from Medishield Life, it makes sense.  Concern is if you have an existing old Plan B then above is a point to consider carefully.

AIC - Agency for Integrated Care

If you have aged parent or relatives who are physically disable and unable to do 3 of the 6 daily activities, and needs financial assistance, refer to AIC http://www.aic.sg/ .

Application can be by email so is rather convenient.

The other part is the Silver Care https://www.silverpages.sg/ when grant of subsidy can be given for mobility aids like wheelchairs, walking frame, comote, geriatric chair, etc. Check the silver care website.

Many have aged parents or relatives that fall into physical handicap but is not aware there is such financial assistance in place, can contact AIC. Refer to http://www.aic.sg/

 

Share this information with your friends who have aged parents and relatives that need such assistance. Government has set aside funds to help this group of aged citizen who needs help.

If you have any query, please refer to AIC or click https://www.silverpages.sg/

Do not any how let agent switch your IP plan with exclusion

I have just concluded a breast cancer claim case to pay out 2 critical illness policy.
My this client few years ago switch out her IncomeShield to company Pshield, and because of breast carcinoma in situ then, was accepted with Special Term to exclude breast cancer treatment.

As an ethical agent, would she be advised to accept to cross over? She  was advised to accept, this is the most ridiculous advice & recommendation. It was switched over and was too late, now the breast cancer treatment is not covered. Her treatment would have been easily covered under Incomeshield if she has remained.

She is fortunate Medishield Life is in place since 1 May 2016 and so can be covered to B2 ward treatment. I have always said the government has done an excellent job to make Medishield Life compulsory.

I have always advised against switching if one has existing condition and I also believe all insurers' IP  plans are more or less covering adequately with slight  differences. Go with the insurer you trust.

I hope the insurance professionals will live up to their ethics. Earning commission is livelihood, but for such a plan is a person's future lifeline. If one cannot meet sales target annually, then just shows this job is not suitable. Seek the interest of others, as one of the ethics is.

Never compromise client's interest for self interest.

IP Standard Plan pro-ration factor

I like to  raise a question - Does pro-ration factor for outpatient treatment in private institution applies to outpatient Kidney Dialysis treatment ?

It is written “One advantage of having an IP is the higher amount claimable for kidney dialysis. The standard B1 plan pays up to $2,750 a month for this while MediShield Life pays only $1,000. This is an important consideration if your income bracket does not qualify you for subsidised treatment.”.

 In the plan itself, there is a pro-ration of 65% when patient goes for outpatient treatment in private institution.

Is the above statement correct?

In Singapore all kidney dialysis are run privately unless it is done in hospital.

The old Plan A & B migrated from CPFB has no pro-ration factor, but most “as charge” today  plan has this pro-ration factor for treatment in private institution. 

I am trying to bring about the point that kidney dialysis the public has no choice to go to a “restructured kidney dialysis’ centre unless is done as inpatient in restructured hospital.

The pro-ration factor will not help people who are caught in kidney dialysis needs. I was told pro-ration will apply unless is done at VWO centres like NKF or KDF but is subject to means test.

If I am correct on this pro-ration for kidney dialysis unless there are alternatives, pro-ration factor should not apply for outpatient kidney dialysis.

 

Finally vindicated and a change will be made in parliament

http://www.channelnewsasia.com/mobile/singapore/parliament-greenlights/2559798.html

Back to basics

Time passes quickly and we are already deep into the year of the Goat.

I have not been actively updating because of some changes which I am not comfortable with, DNC and Data Protection Act.

I must say this year is not a very Goat year though, with three cancer claims to start with in January.

Nothing much to write except “back to basics” again.

Some clients have been asking me if I have missed them out on updates which I can only say, I have not been actively updating as much as before. I will try to start to do more updates forward.

My mum had mild stroke recently and hospitalized twice since Feb, and is harder to manage forward as she is a kidney patient undergone kidney dialysis for past 8 years.

I am writing these again to share with you on peace of mind as regard to financial impact, as IncomeShield helps to support in kidney dialysis and hospitalization all these years, . Forward it will be more challenging managing with the stroke that set in, but far off my mind is financial impact as it is taken care of by the IncomeShield Plan and small amount of cash.

No one wish to use the plan and some even have misconception of the plan when small claims arises but the plan is especially helpful in event of chronic illness and medical need in surgical and hospitalization.

My mother is on Plan B, because of earlier issues with kidney dialysis limits she was downgraded from Plan Enhanced Basic to Plan B.

As long as one has a plan and stays within ward of plan, it should cover nicely, after taking care of deductible and co-insurance.

As for protection, a wholelife critical illness plan is good to have and Vivolife which is a critical illness plan, provide good coverage.

FlexRetire a long term endowment plan gearing towards retirement need was launched recently and I am personally looking into a plan for myself.

A few other plans were also launched to meet the needs of customers. Asian and Global Multi-asset income funds and other existing funds are available, those who have invested in this funds are not laughing, I am sure. Remember 5 years back market was so bad and I thought it will be good time to invest in funds and you can see the positive returns today, but we all know market goes up and down, and so far the recovery has been smooth to today.

It is still back to basics, an integrated Shield Plan, as I always said, take with any insurer you are confident with and a critical illness plan before planning for any savings or retirement investment plans.

Medishield Life will be introduced end of the year and this takes care of medical need up to B2 ward level, so if you desire to have better alternative and higher level of ward stay, then keeping the integrated Shield Plan is essential.

CPF Life, I will be 55 this year, and if you ask me which plan I will choose, I will be taking the CPF Life Basic, ask me separately as it is not convenient for me to share on my this personal take on the plan.

2015 will be another challenging year as we have to abide by FLAIR way of advising on insurance planning, meaning we have to look into Financial objective, Liquidity as in one’s asset and liability, Affordability of premium so as not to over commit, Investment time horizon and Risk Profile of customer.

This requirement means more information to ask client about their assets, earnings and investments and to make sure plans meet their needs. It will be a requirement to do more fact finding but of course if customer do not wish to disclose these information, reasons has to be given by agent. But cannot be all not disclosing, then again, agent will be placed in difficult position.

There will be penalty and dismissal, if agent commit serious errors in mis-selling and disciplinary complaints. Not new.

It will surely be tougher but with much responsibility that client’s need is met properly. Black sheeps will be weeded out in the process.

I wish you and family, joy and health as we move forward.

Independent financial advice

Went to meet a client of mine to review her plans.I am disgusted with so call Independent Financial Planner who advise policy value is not good and to consider to take better plan.

Older insurance plans are under higher bonus scheme than new product in the market today.

This is not the first time I come across such. Many are doing review to provide alternative for self interest. A friend went to see a so call independent financial adviser. End up surrendering many policies including one maturing in 6 years. She told me the financial adviser just summarise and offer his views but did not sell her any plan but refer her to another financial planner for her alternative. I asked if they are related and was told is IFA's wife. How blinded ? When some one summarise your plans make sure you know your plans or talk to the person who did it for you. Independent adviser ? Think again. I am amazed at some people's ethics.

Please think again when an independent financial planner advise your old insurance plans as "not good" policy.

Medishield Life

Pioneer Generation advertisement and video clips have been produced to explain the various benefits for pioneer generation which is good. One area of understanding I like to focus on is perhaps the Medishield Life. I am concern because many who have the private medical insurance Shield Plans may terminate it and go to MediShield Life. Especially when it is said, for those above age 80 is free, 100% paid by government. Medishield Life, if information on term and condition, when released, I would think would be close to the current basic Medishield Plan with some improvement. I am sounding a caution because my mother is above 80 this year. Fortunate to just qualify for the free premium. All the current Shield Plans, Incomeshield, Myshield, PruShield, Supremehealthshield, etc, consist partly of the basic medical within it to form the base of the plan. Currently when I pay IncomeShield Premium for my mother, part of the premium insurer collects is paid to CPF Board for the Basic Medishield Premium, as the latter forms part of the IncomeShield Plan, same for other private medical shield plans. This is why when a shield plan is cancelled it falls back to become Basic Medishield Plan. I am paying about $1600 annual premium for my mum's Plan B. With the coming free premium for Medishield Life, I hope part of the premium will be discount, I think should be for this group of citizen who has private shield plan. Some may think then why carry on with private medical insurance shield plans? I think the Medishield Life plan may be catering up to level of coverage similar to Basic Medishield with some improvement, but I need to be careful with switchning my mother down to Medishield Life. My mother is a kidney dialysis patient that need dialysis thrice weekly and cost $2700+ a month which IncomeShield pays $2400+. If Medishield Life is introduced and kidney dialysis claim benefit limit is $1200 then the impact will be obvious for my mum. I should not switch her. So far this is my point which I hope you can see where I am coming from. I hope you can understand my point. Nothing to do with asking you to remain in Shield Plan but just in case if you have old folks who wish to switch by then, look at the limit of coverage when plan is more firm. I am unlikely to switch plan for my mother. This is just my personal view that I thought I like to share with you looking forward to the MediShield Life to be introduced. At least I am hopeful my mum's premium will be halved being a pioneer generation.

The day I lost my first molar

I had my molar cracked few days back, and finding dentist to extract is an experience. My lower first molar was cracked into half when I ate almond nut, nut never crack molar cracked into two.


My dentist do not do extraction and option was to go Singhealth dental clinic or private dentist to extract. It will be costly as it is molar and may need surgery. All government dental clinic is so fully booked till 10 June as my tooth need immediate extraction before bacteria set in to cause pain.

Finally, I was refered to walk in to KTPH hospital dental department and was thankful, they took me in and did an extraction for me. I was fortunate that the tooth came out nicely without need for surgery and cost was minimal.

A simple incident like this, though unable to claim insurance, sets me thinking if we are prepared for eventualities.

Medical care is so expensive that some time I pity those who are not able to afford or are not prepared, has to bear the pain to wait or even not able to seek treatment on time.

Are we covered with the appropriate plans and saved enough to meet future needs ?

I have written many times that critical illness plan and integrated Shield Plans are important and the SHIELD PLAN is the basic NEED that everyone should have.

I have also written about timeline planning, how we should consolidate our plans in a spreadsheet so that we know where our assets are and the which year the maturities are due.

I am sure many of you are covered well and many of my more senior clients are beginning to rip the returns of their many endowment plans maturing this period forward.

SRS are also being used to plan for Growth Plan previously and some are maturing now and to be reinvested. Some will continue to contribute SRS as a means to save income tax and also to meet future needs.

Perhaps this is the time to review your position and to see if there are needs to meet and to plan.

Happy to be able to survive in this industry for 25 years and moving forward to do what I can to serve your needs.

Delivered a big claim cheque for cancer to my client today who wanted to give me a big Ang Pow for CNY which I kindly rejected asking her to keep for her medical needs. It is also my job to assist in claiming. What surprised me was her other policy which company A rejected that I am now assisting to mitigate. My advice is those with old critical illness plan especially from NTUC INCOME should maintain it. Old plans critical illness claim definition is simpler.

Critical illness plan from 90's term and condition are different from latter plans. And the trend now is towards limited premium term plan, well and good but do not throw away old plans especially those done by parents for child when they were young. Old plans may not have limited premium term but it had automatic premium loan term which I can exercise not to pay premium in old age, and when a claim sets it, all bonuses will still be added before minusing premium loan. Very technical but maintain old plans. Buy additional new plan to supplement. Sad that there are unethical advice for self interest.

This client bought the plan in 1995 and nothing else since. She was surprised I am still around today to assist in her claim. Basically if you want an agent to service you long term, make sure the agent survive the length of years. Agent needs recurring new business every year to carry on, so new business every years on is important, needing to build a base to sustain our existence.

We do work like a horse.

DPS claim for Permannent Incapacity

My letter to ST Forum is published today. I hope the public will respond and understand the issue. I have been engaging CPF Board on this since I came to know this in 2001. The other condition is as long as one is employed and contributing CPF, one does not qualify for claim, this usually arises out of compassion of employer who continue to employ the disabled worker. These two conditions need to be reviewed. I have written about this on a few occasions in this blog, but I think many do not understand my points until too late.

Breast Cancer Claims settlement

A critical illness plan settled for breast cancer.

This is a claim payout for a critical illness plan, one who started with a smaller Living Policy when young and reviewed later in life to increase the Living Policy critical illness coverage.

She subsequently did a 15 years savings plan, Revosave with Special Waiver.

When diagnosed with breast cancer, both Living Policy paid for the claim and the premium for the saving plan was waived for the next 12 years because it is into the 3rd year of the plan. All future premiums waived and the savings continue.

Total payout $119,852.14 and when the savings plan matures, there is another $112,000 to collect.

A proper rider is important when planning for savings plan as well, that one will not be burdened with paying of premiums in event of a critical illness.

Such riders can be added to Term Plan, Mortgage Protection Plan, and other term plans.

Bacterial infection Bill for a child hospitalised in KKH A ward

Some time emergency or illness do happen to child that can catch the parents by surprise. This is a case of bacterial infection, with high fever over more than a week with backache and unknown bacteria infection while was oversea and return back to Singapore for medical attention hospitalised at KKH.
A 15 days hospitalisation incurred a bill of $14,448.83 in a A Ward.
Plan is a Plan Prefered with Assist Rider.
Daily cash benefit of $125 X 15 is paid as patient is in restructured hospital on top of settling the bill after 10% co-insurance.

A claim make a difference.

When I submit a claim for a client, I go with a heavy heart.

When I finally succeed in the claim, I go to my client with a heavy cheque. Paid the second claim today and glad to make a difference as the money will come in handy for future needs. The client told me she feels guilty receiving so much from NTUC INCOME, but in my heart, does the doctor apologise for their charging so much ? Medical treatment especially at private hospital is not cheap and surely appropriate plan will come in helpful in event of such need.

A typical critical illness claim payout

A wholelife with rider that can provide good coverage when a need arises.

This is a breast cancer claim payout.

Plan appropriately.

Time of bonding

A long time client called me yesterday out to buy me dinner, is more a friend after so many years. 18 years perhaps. Lately with a few friends and clients involved in claims, there is a need of a little emotional bonding.

She appear to me as a very nice lady who spot a crew cut to support her friend who undergoes chemo treatment, and when I met her at hawker centre I could not believe it was her and took my phone to call and it was really her. A supportive friend who will go the mile for a friend.

This morning paper in Mind and Body, a doctor wrote about her former nurse who succumb to SLE. Life is fragile, especially in mid-life, body start to break down or illness will set in. 

I am just thankful that what I do may just be able to provide a little peace of mind and help in term of expenses needed when such situation happens. Again, one should look into their needs and plan to meet the need and not want.

Are you prepared when medical emergency arises ?

Below this topic are a few recent bills of a breast cancer operation, muscle & tendon injury operation, chemotherapy and a cataract operation.

Appropriate private medical insurance like IncomeShield, and many other insurers' shield plans are a MUST have. As such plans are paid with medisave account, only one plan is allowed. All the plans have deductible and co-insurance, and these can be covered with rider plans as in the examples below. If Rider plan is added, it will mostly take care of the heavy bills.

The mistake is to give up such plan at old age, as the premium escalate. Many older folks, who have been healthy, simply thought they do not need the plan and since premium is high, they gave up the plans. I hope their children will understand the plan to takeover the payment of such plans. But fact is many also do not understand the usefulness of such plan and do not put much attention for this plan.

I have written a few topics on these if you scroll down to read them.

My recommendation will be appropriate critical illness plan and a basic essential Shield Plan.

Nobody wish to make insurance claim, but when a need arise, it is helpful and there is peace of mind that it can cushion off major bills.

Meeting essential needs

This month trying to assist in 4 cancer claim after concluding one. It has never been with so many happenings so far for my 25 years having to attend to 4 cancer claims within first half of the year. But essentially again, one should meet the needs and not the wants. Basic essential needs are protection and medical coverage. Savings and investments are not the basic essentials as a start. Many youngsters are not planning properly especially so when their peers are in this profession. Though I need to qualify my statement that not all young professionals are like that. This profession comes with passion and need to also survive the industry.

Just concluded a claim for a female policyholder suffering from advance stage lung cancer, unrelated to smoking. Age 49, a long time client with a Living Policy signed 18 years ago. Sum assured may not be huge but it come at a time when a need arises, and with comfort.

Her treatment is mostly paid for by the IncomeShield she had, but without the Rider, which many chose not to have and some will have it included in their plan. But as long as one has the main IncomeShield Plan, a safety net is provided in time of need like this.

Another client age 41, had an IncomeShield Plan Basic with the Plus Rider that covers her 100% for B1 ward treatment which has helped her in her treatment, but this policyholder is in advance stage throat cancer. She has decided to seek treatment in advance stage at private hospital which covers up to 50% with the Plan Basic that she has.

There are many similar stories, and the pain and feelings for them during such time is not good, especially that latter one has a set of aged parents with her.

Same advice I would give, plan for appropriate coverage, hospitalisation medication plan and a life plan covering critical illness as a base with other plans to cater to needs of family.

Savings plan can come later when basic needs are taken care of.

Plan for appropriate medical insurance plans

A week with heavy heart having to visit two clients suffering from cancer. Today visited the second one, quite young, age 41, is in quite bad shape, surely I hope she can be well, but kind of know it needs a miracle. But she seems strong and smile at me though she could not talk, as she has throat cancer and spreading to liver.

Very basic, everyone should plan for is a citical illness plan and the MOST IMPORTANT private medical insurance (hospital and surgical plan using medisave to pay for) plan like IncomeShield, PruShield, SupremehealthSHield, MySHield, HealthShield, etc.

You can be suspicious of insurance agents or even hate them, but these are two basic types of plans that will be helpful if a need arises.   End of the day, not everyone will use the plan, well and good, pay for peace of mind, but when it hits you and me, we can all be thankful we did it.

Switching private medical insurance

One of my client switched her IncomeShield to other insurer, Company A, telling me the policy cover her osteoarthritis of her hand, even though IncomeShield covers her as policy was taken before diagnosis. she switched and I suspect the agent did not declare her condition in the proposal form.

She informed me Company A covers her, which I know is not possible unless is non disclosure. Advised her to make sure it is declared black and white in the proposal form She kept telling me she is covered.

I asked to show me a copy of the proposal form submitted and true enough, all questions were answered "no" which means she has no condition at all, sure policy will be issued.

This is what we call NON-DISCLOSURE.

In future insurer stand to dispute the claim and can even cancel policy on ground of non disclosure.

She was told by agent questionnaire did not ask for arthritis. But all insurer will sure have a question that ask if you have received treatment for any condition. This question will mean if you have known condition, you need to declare. This is the reason why I always advise client not to any how switch the Shield Plan unless condition declared and accepted by insurer. 

Meeting needs

Received an email that sang my heart.

"Hi Thomas
Diagnosed with advanced lung cancer. Awaiting more tests to determine the kind of treatments. What's your advice in terms of insurance matters?
Thanks."

A young lady client diagnosed with advanced stage lung cancer unrelated to smoking.

Two thiings I have done right for her but failed to push for reviews. But she is rather positive. A heavy heart for me to journey with her forward as treatment is recommended. A constant reminder to meet the NEEDS of client.

I have done an IncomeShield for her and a critical illness plan for her which will be useful.

I just hope we can be practical in planning for our own financial needs.

I have said this before, why people are willing to pay for a car that goes to scrap yard in 10 years and never want to plan properly for financial burden for the future needs.

Back to basics to meet the needs and not the wants.

MediShield Premium increase

Recently, you may have received a letter from CPF Board about MediShield premium increase.
All Shield Plan's base is Medishield, so whenever there is an announcement about Medishield premium increase, it affects all Shield Plan across the board, whether it is IncomeSHield, MyShield, SupremeHealthshield, Prushield or HealthSHield.

CPF Board has given a one time top up according to the second page of the letter and premium will be deducted from 1st March, there is no action to take as premium will be deducted via the Shield Plan.

When insurers collect the Shield Plan premium, part of it is actually Medishield premium, so insurer will also be sending out information on this in March, so do not be alarmed.

I also like to advice.

1. Do not any how switch Shield Plan when one has existing condition, unless fully declared and accepted during the proposal stage, all material facts has to be in black and white on the new proposal form if you want to switch, and subject to underwriting, do not allow an agent to submit a form indicating no problem, if you have an exsiting condition that need medical attention.

2. Many agents will say that IncomeShield Plan does not pay 100% with a rider. This is partly true. NTUC INCOME has two types of riders, those holding old type of rider is call "PLUS RIDER", this rider combines to pay 100%. The current rider is call "Assist Rider" which requires 10% co-insurance, meaning if bill is $900 you pay $90 and rest is paid, but there is a cap to the 10% co-insurance.

Many have switched out because of such sales tactics of some agent saying IncomeShield does not pay 100%, so please check before you believe, if your rider is Plus Rider, it is full coverage.

There is always a cost to pay, plan that covers full is normally high in premium, and in longer term if the rider is not tailored to cover the plan but just another H&S plan, the cost can be high forward.

Premium wise and long term, the Shield Plan must have varied plans for upgrade or downgrade. When one is young ultimate plan is affordable, but when come to old age, one has to see if there is alternative plan to downgrade to. These are considerations for Shield Plans.

My principle remains, that whichever Shield Plan you have, as long as you have one plan, it is essential for life backup to old age. Go with an insurer you are comfortable with and do not compare until cow come home still not done.

MediShield and private medical insurance Shield plans are payable by medisave, and all plans have a DEDUCTIBLE and 10% co-insurance, which is standard for all private medical insurance Shield plans. Most insurer will introduce additional rider or coverage to cover the deductible and co-insurance at a premium, payable by cash.

Final reminder, please do not switch plans any how when one already has a medical condition, ethical agent will never switch you, once they know you have an existing condition, for example, hypertension, high chlorestrol, ETC, assuming before signing up current plan one is healthy and such existing condition set in , ONE SHOULD NOT SWITCH, as it is covered in existing plan, unless declared and the insurer noted the condition and willing to accept at standard.

Same old story, my mum is on kidney dialysis and IncomeShield has been such a great help to me to cover her thrice weekly dialysis bills. Total bill per month is about $2,700 and we claim for about $2300+. A very huge relief.

In life, Shield plan is an important essential plan.

Saddest thing is some time older folks terminate it because they have no enough medisave to pay for the plan, and when serious illness set in, it can be a financial burden. One can pay for their parent's Shield Plan with their Medisave.

My father in law had a brain haemorrhage 4 months, back, and it was another chapter of challenge but with peace of mind at least he has a Shield Plan,he is age 83. Do not intend to write about this as it will be another chapter.

Hope we do not need to claim upon Shield Plan and be healthy.
Wish you and family joy and health.

Accident claim LIAR

Some time in an accident, you meet many types of people except the honest people. Though I must say there are still honest people.

It is the dishonest liars that make claims so unfair.

My advice is always to make the report factual and leave it to the insurer to decide and defend.

One usually lost to liar who twist and turn report and can write story from black to white without whinking their eyes.

When a party tells lie, there is nothing much insurer can do but to go according to an agreed BOLA, barometer of liability.

I sympathise with many who lost to a liar, but best we can fight is for it to be 50-50 than full liability.

Insurer's hands are tied as there is no evidence to fight the case but base on one man's word against the other, and usually a liar wins.

Those with mounted camera would be good to submit the chip for evidence or to take pictures immediately showing positions of cars in relation to road condition, but this is as best to do and one is still at the mercy of a LIAR.

There is nothing much one can do when met a LIAR. I suspect also that those who are familiar with BOLA assisted the LIAR too.

Do not let such lost bothers you, just know that you have lost to a LIAR.

CPF interest credited on 31st Dec 2012.
If one is prudent and not very ambitious, contented with a roof over the head, the interest derived from CPF after retirement can be quite comfortable if CPF Board continue to provide interest at current rate or better.

Greetings

Greetings to you.

Year 2012 is coming to a close and may I take this opportunity to wish you and family joy and health.
The year past so quickly and surely there are ups and downs that we encounter along the way.

Perhaps I have not been writing as often as I should, which is not good for keeping in touch.

Just to share with him, my father in law, age 83, had a brain haemorrhage a month ago.
When a love one is down, concern and love are always shown, but at the same time, behind the head will be cost. Thankful he is on IncomeShield Plan C. Well, it may not pay for all the cost but the least we know is it will cushion off the cost.

I have come across many times, older folks giving up Shield Plans because premium has reached quite high, for reason that their medisave may not have enough to pay the premium or they feel it is too much to pay. I would encourage that we look into our older folks' Shield plan to keep it inforce incase when needs arises.

I always am thankful that my own mother has IncomeShield I took up for her, she is now age 79 and kidney failed and has been on kidney dialysis for past 5 years, CUSHIONING my family a big cost in dialysis fees with IncomeShield.

Whether this is a sales talk or otherwise, I leave it to you, I always advised, whichever insurer you are comfortable with, please take up a Shield Plan with any one insurer.

Interest environment is also low, thus Endowment plan seems attractive now with decent yield.

Many also have not understood SRS, Supplementary Retirement Scheme despite me updating each year.

My intention to write is not to soft sell, but if you have a need or query, am thankful that you have always contacted me.

I will be away 15 - 25 Dec spending some time with my family, and I wish you and family all the best in the year to come. While away, I will try to check email if there is access.

I did a presentation on 23rd June 2012 at Singapore Cancer Society Forum on importance of insurance in Mandarin.

Two considerations are :

钱不是万能
没钱是万万不能

Money is not the ultimate but without money, it is diffuclt. In event of unforseen situation, one can be a burden to family and relatives and friends. How have we plan to cover our life and medical cost ? Dying is not the ultimate but will we leave behind a debt for family that lacked our support when we pass on.
 
爱的代价
有心无力
 
When our loved ones need medical attention, will finance be a problem ?
I have put up many examples of medical bills in this blog for reference. There are so many insurers offering the integrated private medical plans, do not compare until cow come home and still comparing.
 
Importance of insurance can be written and spoken, but if one will not take action, one will only realise it until it is too late.

I am glad that many visit my blog everyday. This blog serves to educate. Some wrote to me with loads of questions which I have to answer in specifics and in general refer them back to their own agent. My principle is that every policyholder should establish a good relationship with their agent. Service seeks mutual understanding for long term benefit. I get my fair share of complaints too and relationship with clients have to be terminated. Same time, I appreciate clients who trusted me all these 24 years I have been in this profession.

Kidney Dialysis Bill

This is my own mother's monthly kidney dialysis bill covered by IncomeShield Plan B.
Thrice weekly dialysis can cost up to $2700 a month, and IncomeShield Plan B covers $2000 for dialysis and up to $400 for eryprotein injection. Without IncomeShield covering kidney dialysis the financial impact will be a burden.

Private Medical Insurance

Sorry for those who contacted me, I always encourage one to go with their current agent to establish a relationship for the future.

I have been in this for 24 years and lots of misunderstandings from those who takes IncomeShield only and along the years when claim arises, when one do not understand deductibles and co-insurance, agent is always accused of not explaining.

I am also thankful for those who are quite understanding.

IncomeShield,PruShield, HealthShield, SpremeHealthShield, MyShield are all essential hospital and surgical plans that will meet the needs of each person in their lifetime and is the most basic necessary plan. As this is paid by Medisave, only one plan will be approved, so whichever insurer one has confident in, please take one before it is too late.Take it when you are still healthy and not until it is too late.

One can take it for their children, spouse as well as their own ageing parents. Cost is low. We need to be prudent in such planning. Even if one has no need of it, it is a peace of mind. My own mother on kidney dialysis is covered by IncomeShield. As I use to mention in my blog, do not compare until cow come home, take any one you are comfortable with first.See more

Gathering your earthly treasures

Have you considered to draw a spreadsheet and input your assets?

This may be good as you will then know what you have and where they are. You can can draw out templates for insurance, bank balance, CPF, investments, etc.

You can also draw a time line to mark out the important milestones, where your assets matures or time expected to liquidate or reap the investment returns.

Frankly, other than gathering and organising the assets, in event of unfortunate situation, at least the family will have easier time tracing. Just a practical tip.

CPF Minimum Sum at $131,000 fro 1st July 2011

CPF Minimum Sum

The Ministry of Manpower announced in August 2003 that the CPF Minimum Sum (MS) will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. In line with this policy, from 1 July 2011, the prevailing MS will be revised to $131,000, up from $123,000. Members who can set aside the MS fully in cash can apply to commence their monthly payouts of $1,170 when they reach their draw down age. The new MS will apply to CPF members who turn 55 from 1 July 2011 to 30 June 2012.

For more detail goto http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_31May2010.htm

Plan before it is too late

I have not been writing on the blog for a while because I am using FACEBOOK. Maybe I should consider to have a FACEBOOK account to replace my BLOG ?

Recently, I have two emails from two customers and the situations are two extremes as they wrote :-

["Knowing you for the past 20 years is a blessing and you are definitely a god sent messenger to me too. You gained my first insurance policy then and have given me constant drilling into financial planning, having adequate and basic insurance both medical and savings etc etc. Without knowing you at that time, I may not been able to work towards my retirement goal. Somehow, I have been able to set certain threshold for insurance and the rest for self investments and these work fairly well for me. Thank you for being not just my insurance agent but being more than that, “FRIEND”."]

["If I want to take up enhance incomeshield I am 51yo. But one question if recently I have a stent inset (heart artery blockage) and also hospitalized for 5 days . Can ntuc income accept my application? Or subject to their review? "]

We have to consider what is our priority in planning to meet our needs as we move along. Protection, medical, savings, retirement planning, etc. We can say as much but keep hesitating and procastinate until it is too late, like the IncomeShield planning and protection plan involve life insurance planning.

Basically we start with insurance planning, medical, savings and when come to older age, retirement planning, but it is also a myth that retirement planning comes at older age. If one has the budget, long term retirement plan can be done early as well.

I wrote this in my Facebook, this profession is a love-hate profession.

How do you like to be in a love-hate profession, left cornered by client, right pushed by office, for outstanding payments and for services, etc. A very challenging job to keep sane and the day will come, I am going to take it easy. Those who love you wish you will not die before them, those who hate you, wish you go first, they complain.

Basically for me, I have enjoyed past 23 years meeting clients and the needs of some of them, and many have taken me as their personal friends more than just an agent. My own plans is also done with same objectives to care for the family and as I age, I will not be a burden to the next generation. These are two simple principles I have for myself and when a client comes to me, my own experience comes in handy as I plan for them.

Do look into your own needs before it is too late. There is nothing much I can help after a condition has set in. If you need to review your needs, with the two emails I received above, you probably would know what are the essentials.

As we approach the end of 2010, may I take this opportunity to wish you and family joy, health and wealth.

2010 has been an exciting year and a good year for most as economy picks up.

I will always do what I can when I am needed. This year has not seen any major claim, which is good, meaning most are in good health. Do pardon me for any lapse of service, if any.

It has also been exciting even into last few days when one of my client's IncomeShield has been switched out by fraud. The case has been reported to police for investigation since signature is not my client's signature. Important is to get it reinstated, thus proof of fraud is important in this case. This show case that there are some black sheep in the industry. I have never imagined how this can happen.

2011 seems bullish and may be a year to watch out, to liquidate some investment funds if it gets too bullish or maybe 2012. This is just my personal take on the economy. With all respect, during market down turn, no fund manager speaks, but after market recovered, most will talk about upturn and how record will be achieved forward, but when it collapsed, most go silent again for a long time. So when there is talk of bullish market and how index record will climb, perhaps is a sign to consider if it is time to liquidate. What goes up will come down, easy to say but always never take action until too late.

Hope 2011 will be another exciting and prosperous year, wishing you and family all the best.

Your car may not be due for inspection !

Many car owners received road tax renewal and on impulse sent car for inspection which is unnecessary. If car inspection is required, it will be specified at the bottom of the road tax. Inspection interval for car is 2 years after year 3. Problem is inspection centres are sending out their leaflet based on database. So please check and do not pay for nothing.

Inspection is required only when official letter is sent from LTA. And it is reflected clearly on the road tax renewal disc sent to car owner.

I think many have sent their car for inspection without realising it is inspection centre's marketing letter and not request from LTA.

Inspection centres are laughing all the way to the bank.

LTA's requirement for inspection for car is biennially, every 2 years, there is a list of vehicle inspection requirements for all types of vehicles, link at http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/maintain_vehicle/inspection.html

Plan to meet NEEDS.

Concluded the biggest sums assured I ever done yesterday, $2 million term and $1 million critical illness Living Rider. Beyond my imagination, pass through the stringent medical check and still could get standard rate. A case that I never think will get standard when one is a Hepatitis B carrier, but with anti-bodies.

On the same day, a client died, submitting a claim for $10,000 plus bonus.

Some time it is an awful sense of responsibility and some time guilt that I am not able to convince those who refuse to see the need, how one should plan, how I can help others see their needs.

Action to do when car tyre has a blow-out,puncture.

A friend sent me this video clip on what action to take during tyre blow out, I think it is good public education and I like to share it with you. Just click to view the video.

I think the natural instinct when a tyre puncture is to hit the brakes, but it is not so, view the video for advice.

Colon Cancer Claim - 3 C's ?

Another of my client, age 45, WAS DIAGNOSED WITH MODERATELY DIFFERENTIATED ADENOCARCINOMA OF RECTUM, commonly known as colon cancer.

Life is fragile. IncomeShield and a critical illness plan is so important ( not to advertise ), I have seen and met and plan for many and such are the basics in insurance planning.

I have always mention that whatever Shield plan, one need to be insured. Basic Medishield or any of the private medical insurance plans, Shield Plan.

Critical Illness or Dread Diseases will cripple a person if one is not prepared for the bills that will come along with it.

It is NEEDS to be met before WANTS.

Put the essential needs in place before planning for savings or investment plans.

There is nothing new to write about but just the reality of life.

How to reduce income tax?

Most of us would think that to reduce income tax, is to contribute to SRS, Supplementary Retirement Scheme.

There is also another avenue, that is to do cash top up to parent's retirement account.

If your parent is retired and above 62, and you have been giving your parents allowance, one can actually do cash top up of up to $7000 to parent's CPF Retirement account and the parent gets a monthly draw down of $297.

If you have been giving allowance to your parents, this is one way to claim tax by doing cash top up.

You can have a joint bank account, and the monthly payout from the MSS, $297 will be credited to the account monthly and at the same time there is tax relief.

Timeline planning

Timeline Planning - ExpandedA spreadsheet to plot out the timeline and to gather one's assets in one page view is quite helpful.

You can include your CPF savings, other investments and maturity of policies, bank accounts, etc, to have an indication of what are your assets in total, present and future with a good estimate.

Timeline spreadsheet can also faciliate the planning for future needs and plug any gaps ahead.

Actually, there is no secret in doing this, just use your creativity, and insert formulas to aggregate the portfolios and add on as the time progress and the assets increase over the time.

Have fun in gathering and designing the spreadsheet to your own taste and colours.

(Click on the image and expand the view, you will see the example of the spreadsheet)

Uni fees in 2015,2020 & 2030 with 6% inflation

In 2006, the fee for other courses in SMU was $7500 per year, and today ( 2010 ), it is $9890 which is 7.16% inflation.

I have drawn out an estimate, based on 6% inflation from 2006, by 2015, 2020 and 2030, the fees could be $12,671, $16,956 and $30,367 respectively.

This is time value of money and the fees will surely goes up with inflation.

Are we prepared in one way or another for our own children?

I know this figures because I paid $7500 per year for my own daughter who is finishing this year, but I have two more to provide for, if they survive the education system.

Unknowingly, I have put aside in the Growth Plan and some investment plans which will come in handy.

I have written an article on time line planning http://phuakahkengthomas.blogspot.com/2007/04/time-line-planning-leap-frog-forward.html in my blog. This was 3 years back, but it gives you an idea of how you can save for the future.

You can click on the link and take a look.

I hope it will be useful for your planning, the actual spreadsheet, if you do it, will have more information and assets you can gather.

Thank you for visiting my blog.

On several occasions, I received emails seeking advice and help.

I will try to help, especially those that really need help and is in critical illness, but I have people who email me to check on their relatives pertaining to claims.

I hope that more details and truth can be presented to me if help is needed.

I have one who emailed me about her brother's policies having problem being surrendered without his knowledge, and on checking it is actually under police investigation for forgery.

I have some who asked me to check on possible claim on lapsed policy, but policy did not exist with NTUC INCOME.

I am always willing to help those who need help, but I hope those who contact me, be fair to me. If you have your own servicing agent, please contact them first. All agents are responsible and will assist their clients.

The only situation is you take from direct distrubution channel (business centers, bancassurance, etc ) and these channel do not provide claims assistance. You need to call hotline.

Switching of PMI ( IncomeShield, PruShield, SupremeHealthshield, My Shield, HealthShield, etc )

Every now and then, many policyholders will switch their PMI ( IncomeShield, Prushield, Healthshield, SupremeHealthshield ) from one insurer to the other.

For easy reference, there is a comparison of plans between all insurers at Ministry of Health website at http://www.moh.gov.sg/mohcorp/hcfinancing.aspx?id=11222

You can download the pdf file that will show you the comparison of benefits between insurers, though it was updated in February 2009, it should be updated next year. But this can be a reference as most insurer would have made some minor improvements over the time.

At any one time, only one "Shield Plan" is allowed, thus cancelling each other out during a switch.
My advice is -
1. Choose an appropriate plan
2. Look at options for downgrade at latter part of life ( FROM SAME INSURER)
3. PLEASE DO NOT SWITCH WHEN ONE HAS EXISTING CONDITION, BY SWITCHING WITHOUT DECLARING, IT FALLS UNDER NON DISCLOSURE, AND CAN RESULT IN DISPUTE IN CLAIMS.

My personal comment is, when a plan is switched to the other company, it is counted as new business and add on to the company's overall total, in the insurers' quest for positioning, if insurers are fighting for positioning in the industry. So you find that some will suddenly do a promotion campaign for the plan. Sorry that I am mentioning this including Income but you will see that NTUC Income promotes the IncomeShield whole year round as we believe that this plan is the basic needs of everyone. Of course the other more more valid reason is that there need to be a good base to sustain the plan.

My personal conviction is PMI ( Private Medical Insurance or Shield Plans ) are basic needs for all, and all should have at least a Shield Plan, as I have always shared. Whichever Shield Plan you have, just ensure you know the benefits and are comfortable with it. DO NOT SWITCH ONCE THERE IS EXISTING CONDITION LIKE HYPERTENSION OR DIABETES ALREADY SET IN. AND PLEASE DECLARE ALL HEALTH CONDITIONS IF YOU WANT TO SWITCH.

My exchange in CPF Board Facebook on DPS definition of Permanent Incapacity against PTD or TPD

Thomas Phua
Will CPF Board look at DPS Permanent Incapacity clause?Life insurance plan covers on PTD or TPD, total permanent disability. When insured lost the use of two limbs and on wheel chair, will be considered as PTD. Same condition, claim will not be paid as DPS's definition is Permament Incapacity, meaning one must not be able to continue to earn a living. Wheel chair bound insured, is not deemed as Permanent Incapacitated. This is really not fair to those insured on DPS. Should not DPS follow PTD term and condition for disability?
October 22 at 2:51pm

IM$avvy
Hi Thomas, thanks for the feedback. We will feedback to the relevant dept on this. Have a great weekend :)
October 24 at 7:57pm · Report

IM$avvy
Hi Thomas, thank you for your feedback.Members who are covered under DPS and subsequently become physically or mentally incapacitated from ever continuing in any employment may apply for claim benefits under DPS. A member who is physically/mentally inacapacitated should not have the ability to work in any form of employment. Members who are still able to perform some form of work but have difficulty in finding employment are not eligible to claim under the scheme. A person whose medical condition(s) has caused him to be wheelchair-bound, would be certified as being incapacitated as long as his conditions prevent him from ever continuing in any employment.
October 27 at 4:25pm · Report

Thomas Phua
This is the point, thank you for clarifying, I assisted in a case of wheel chair bound person, it is PTD or TPD as according to insurers' term and condition and claim was easily admitted. The same condition was rejected as DPS term it as not Permanent Incapacitated. A wheel chair bound person, is still deemed to be employable, selling tissue papers, or become a tele-marketeer because his hands and upper body is still functioning well. This is why I think it is not right that DPS defines PI as such and very different from PTD or TPD.
October 29 at 10:53am · Delete · Report

Thomas Phua
Statement from insurer is "we find reason to pay claims" Not to dispute claim on technicality. Poor chap already lost the use of two limbs and we still want to fault him on employability, this is heartless. It took first claim in 1995 to be rejected, and this year, 2009 it was rejected again, but we managed to find reasons enough to appeal and find reason to pay the claim after the policyholder retired from employment, still on wheel chair. He was on wheel chair for more than 10 years and finally paid, after overcoming the technicality of PI condition. I do not know how many cases have been rejected because of employability clause of PI. But is cruel.
October 29 at 11:07am · Delete · Report

IM$avvy
Hi Thomas, thank you for taking your time to provide us your feedback. We would like to invite the DPS member you mentioned to contact us directly at 6229-3312 if he has any further queries regarding his claim, we would be happy to clarify the details with him directly.
November 2 at 4:55pm · Report

Thomas Phua
Is okie, I managed to overcome the tough terms and managed to get the doctor for second opinion to prove him Permanent Incapacitated and claims paid after the initial rejection.My point is why DPS defines disability with PI instead of follow industry standard of PTD or TPD. DPS is a kind of term plan, and should follow PTD or TPD as in term plan condition. Afterall, DPS premium is not any cheaper than term plan today.
Wed at 5:45pm · Delete · Report

Thomas Phua
CPF Board should review the terms and conditions of DPS's Permanent Incapacity to follow what it is with commercial insurer's TPD or PTD definition. If the plan is to help the public, it should not be more stringent than any of the commercial insurer. This is not fair to the public who probably are not aware of this.
Wed at 5:47pm · Delete · Report

A successful Permanent Incapacity claim for DPS

(Have been receiving appreciative client's invitations to meals and even getting moon cakes for several claims lately. Wonder what will happen to me, if ever there is a claim disputed, I HOPE it will not happen. So far has been so good.)

Compliments to Mr Chew Kia Wong and Mr Thomas Phua

To: CEO

NTUC INCOME

Dear Mr Tan,

It is with much pleasure that I'm sending this email.

My experience with the recent claims that I made on my DPS and Eldershield insurance policies have been delightful for me because of two of your staff members, namely Mr Chew Kia Wong and Mr Thomas Phua.

It is not because I have been successful in my claims that I'm writing to you. You see, Mr Chew has truly been very professional in his dealings with me. Yet he has shown competence coupled with compassion. When he and his staff spotted some technical inconsistencies in the documents which I submitted to support my claims, he did not take the stance of coldly rejecting my claim outright. Instead, he gave me reasonable and valuable advice on how to mitigate the problems and thus make good the claims.

He has indeed displayed the sterling quality of an empathetic gentleman who understands the predicament of a genuine claimant.

I must also add that my agent for many years now, Mr Thomas Phua, has given me immense support by championing my claims. He has been both an agent par excellence as well as a good friend to me.In my humble opinion, both Mr Chew and Mr Phua are indeed valuable assets to NTUC INCOME and are great examples of how service should be rendered to your customers and policy holders. I should mention that the other staff members I have dealt with have also been very efficient and responsive. You should be justly proud of them all!

With best regards,

DPS - Dependent Protection Scheme

Will CPF Board look at DPS Permanent Incapacity clause?

Life insurance plan covers on PTD or TPD, total permanent disability. When insured lost the use of two limbs and on wheel chair, will be considered as PTD.

Same condition, claim will not be paid... as DPS's definition is Permament Incapacity, meaning one must not be able to continue to earn a living. Wheel chair bound insured, is not deemed as Permanent Incapacitated.

This is really not fair to those of us insured on DPS. Should not DPS follow PTD term and condition for disability?

I have posted CPF Board this question. Will they give an answer on this?

Ya Kun @ Orchard Central

If you are in Orchard area and wants a cup of nice coffee or toast, you can head for Orchard Central level 5, there is a Ya Kun outlet there. I am quite surprised that you get such nice coffee and yet the pricing is same as in any other outlet.

Surprisingly, Ya Kun is also in Takashimaya basement 2 and Far East Plaza. Just realise this from their website.

Does Children need insurance?

I am thinking of how to write about how a child should be insured as some ask if a child need life insurance.

I have been wanting to write about this and trying to be sensitive about it.

It is more to help parents to understand the importance of Incomeshield and some insurance planning for children and at the same time trying to be sensitive over this issue.

My view is that some form of insurance planning is advisable for the child as our parental responsibility and if they grow to adulthood, then the plan will meet their needs as parents for their family too.

Incomeshield is the primary important plan and the other plan is Vivolife other than just planning for Education Plan.

Newspaper articles are so common. I know it is rather sensitive issue for some to discuss about this.

Is Basic Medishield sufficent ?

Minimum one should have is a Basic Medishield and if one needs better medical care, upgrade to Private Shield Plans. My personal experience is Medishield is not sufficient if one needs kidney dialysis. I hope those who write and advocate that Medishield is enough will not continue to write from his own point of view in bitterness, as this will make those who followed his advice to face financial strain in time of need. One should understand their own needs and standard of medical care they need, to decide if Medishield or upgrade to private Shield plan is good for them rather than continue to condemn the private Shield Plan.

How CPF Life works.

(Click on the How CPF Life works or the picture on the right, and at the website click the pic to get to the info)

Member who opt in CFP Life will get the L Bonus, there is no free lunch, give you first, then collect from the yield of the "premium" in the future and put in the pool.

Normal annuity do not have such penalty and the whole premium grow with the principal sum, and refund with draw down accordingly.

Will the annuity payment will better or as good as insurer's annuity.

Below are two passage from the attach booklet I extract from their website.

(From CPF Life Guide Book, page 9)

Yes. Interest earned on the RA savings will continue to be paid into the RA. Interest earned on the annuity premium will be paid into the Lifelong Income Fund and pooled with the interest earned from the annuity premiums paid by the rest of the CPF LIFE participants to provide the life long payout under the scheme.

(Look like depending on which plan, the premium interest will be "penalised" and thrown (contributed) into the Lifelong Income Fund. Premium interest are being contributed by everyone into the pool. As plan will be compulsory for those age 55 by 2013, there is no choice to opt out if one finds a better annuity plan else where)

(from CPF Life Guide - Page 8)

There are 3 LIFE plans which provide a refund of the unusedannuity premium 9 on death, namely the LIFE Basic, LIFE Balanced and LIFE Plus Plans. Under any of these plans, the full premium will be refunded if you pass away before any payout has been made from your annuity. If you pass away after the monthly annuity ... payout has started, the unused premium will be refunded. Any refund will be made to your CPF account and paid to your beneficiaries.

(so look like from page 9, members will contribute the yield of the Annuity premium to the pool once a member join in the CPF Life, refund premium will be fixed without yield?)

Based on the CPF Life book, if the premium for Plan Basic Plus, the default plan, there is a 30% of RA to be set aside as premium.

At $120,000 in RA, $36,000 will be set aside as premium and DDA draw down from 65 to 80 and life long premium kicks in.

$36,000 set aside at age 55 @2% = $59,061 at age 80

$36,000 set aside at age 55 @4% = $95,970 at age 80

The amount of yield set aside to contribute to the pool seems a tidy sum.

Singaporean grossly under insured

If you click on the title, you will be linked to the article.

Today there is an article in the Straits Times, reporting a finding by an NTU Associate Professor that Singaporeans are Grossly underinsured.

This is a timely reminder and infact should be a constant reminder.

How well are we covered in terms of Medical, Protection & Health insurance coverage? We plan not to benefit from it, but just in case a need arises and one is not stressed out.

I am not trying to capitalise on the situation to remind you, but it has always been my motto "plan to meet your needs and not wants".

I have written several topics on Shield Plan, proper protection planning (especially on a claim case in 2005) and timeline planning for retirement and savings needs.

Perhaps it is time to review again and reflect again.

A quick calculation, if our family depend on us for $30,000 a year and our kid is young, example age 1, we need to see them to independence at age 21. If unforseen circumstances happen, we need to plan for next 20 years = 20 X $30,000 = $600,000.

Insurance premiums for $600,000 is not as high as one imagine, as proper planning with comfortable budget is possible. Talk to your trusted financial planner.

-------------------------------------------------------------------------------------------------
This is not new, infact is everyday problem.

I am thankful I covered my mum for Incomeshield and every month her dialysis is $2700 and we claim $2100 to $2400, if not it will be very serious financial burden.

My widowed client came to our agent event last month, invited to speak to us on how she benefitted in 2005 when her husband passed away leaving behind a 3 and 5 year old daughters, and the whole meeting broke down, because we are reminded once again of our role to plan for the needs of our clients. I admired her spirit and courage to come because she did it with hope that her testimony can benefit others. I had a DVD of her speech, but could not upload it as file size is too big.

Planning needs common understanding.

I am always prepared to listen and discuss if any one wish to see me for review.

Some time I think some clients are overly suspicious of agent's intent.

Yes, we need to earn commission, but it has always been mission before commission for me.

If you have big gap and big needs, I earn big commission.

But those who cannot afford, is commission a bother to me? I would be at peace if I can meet their needs in planning, even if I do not make much out of the commission.

Most of all, I like my client to treat me as a friend.