Time Line Planning

Have you ever plot your assets and insurance maturity along a time line to give yourself a picture of your financial standing forward? If you click on the above image, you will see the time line chart in better detail.

I have refined, the excel spreadsheet to include this couple's children's education needs. You will find that this couple has three teen children and one is now in University. If the other two children can survive the education, the projected year ahead will be the year the other two children enters university and their graduation years.

It is good to plan ahead to have insurance savings plans to leap frog ahead towards retirement. Ntuc Income has single premium endowment plan, Growth Policy, that gives good yield over the years. This couple also has investment linked funds and other insurance coverage as well, not shown in this time line.

You may want to click on this line for Growth Policy

Review your old policy Riders

Review the Riders that is in your old policies.

Do you have riders known as ADB/RCC or Hospital & Surgical Riders?

Many of us have riders in our old policy that cost quite a hefty premium because it was taken when we were younger and from then premiums are not changed or rather along the way new products are introduced with better coverage and lower premiums?

Look especially at Accident Death Benefit rider, if you have one and compare a Personal Accident plan that covers other than accidental death, also partial disablement and medical expenses. You will be surprised.

A few types of riders you may want to take note of.

1. 5YRT - this is basically a 5 year convertible term that will have premiums changed every 5 years, at a point in time, the premiums will be high because of age, and many are not aware. Will a level Term premium be better and more cost effective for you? There are many new Term Plan that has low premium today, example, i-Term.

i-Term

2. ADB - Accidental Death Benefit, Personal Accident Plans today have wider scope of cover and much lower premium today.( one company issued the PA long ago, and premium is not cheap, though it may be monthly $15 or so for $30,000 Personal Accident and still inforce, but yearly $35 premium can get one a $50,000 PA policy with $1000 medical today with a few other insurers)

PA - Personal Accident Insurance
PAID - Personal Accident + Infectious Disease Plan

3. H&S - Hospital and Surgical Benefit - Shield Plans are much cheaper today and again scope of cover wider. And premium paid via Medisave.

New - Enhanced Incomeshield Plan

Ask yourself what are the riders for and do you need them? Many have bought policies much earlier in the 90's and file the document away have not really bothered about the riders.

I have personally reviewed with a few of my friends and there are some savings that one can derive from adjusting the riders.

But a few will not need adjustment, so very much depend on what riders you have.

Take a look and talk to your trusted agent or seek second opinion.

I think it is good to look into the few things mentioned above. I can only say I have reviewed with a few of my policyholders their other policies and this is what I can tell you, review the riders.

Time Line Planning - milestones in life towards retirement

Hi,
I have a client, with his permission, I will share with you how he has planned towards retirement. If you click on the image on the left, you will see a better picture.

Whenever he has spare cash, or CPF or SRS, he will set aside to plans to mature in the future. Following is the time line for mostly the traditional, Growth Policy, I-Gift, Capital Plus, Harvest Policy and even Endowment Plan. They have many investment linked policies as well.

The maturity is well placed for the future.

Some time we procastinate and time and time again, no action is taken and funds are left in the bank for low interest, and in the CPF and SRS not used.

Such placement over the years will also provide additional insurance coverage which will be useful for insurance protection as well.

Should you wish to plan along the way, it may be good to consider. This couple also has investment linked Plan ( Combined Funds - Growth & Balanced Funds ) which I have not asked for permission to show. This will be in addition to the time line, which can be quite useful in between when there is no maturity.

Unknowingly, they have set aside spares for the future retirement needs and for the children's education as well.

The discipline starts quite far back. If one puts $10,000 the maturity in 10 years is about $14,800. When it matures, one can roll over for re-investment.

Example their Capital Plus would mature on May 2007, they will re-invest $20,000 each and keep the balance for maturity at the next stage is 2017. This will give them a projected return of $29,600 then. Start planning early to have a better retirement and to meet contingency needs in between.

Have you drawn a time line for yourself to target towards retirement?

Promotion is on next month forward from 1st February, with $200 Ntuc Fairprice vouchers for cash placed and 1% additional bonus for CPF Funds for $20,000. Additional $100 voucher per block of $10,000 will be given. Meaning if one place $50,000 cash, voucher of $500 will be given, offer is for limited period only.

Some one's sister had lung cancer.

This is a very common phrase.

You will hear so and so's sister, brother, mother has cancer.

What comes to mind? I am sure it is not how long more will they live but how much will be needed for the treatment.

If we honestly think so, are we ourselves adequately covered?

My recommendation will always be any Shield Plan and dread disease Living Policy should form the basic coverage.

I said any Shield, because it is not point to compare and contrast until it is too late. There wouldn't be too much of a difference between all Shield Plans except that the premium may be lower and a little bit of benefit one company has and the other company does not have.

It is important to go with an insurer with good base, so that the premium will be stable over the years to come. Also look for a more compassionate insurer and not one that sticks to term and condition so strictly that there is no compassion shown.

Any dread disease needs funds for treatment and in worst case scenario, one may lost the capacity to work.

Many people are willing to pay $500 a month for instalment payment of a car that will be scrapped in 10 years, but $100 or two a month to plan for the financial security of one's family, one will think and consider so much.

I hope we can have better sense in this. Sorry for my frank view.

S'pore's Top 5 Killers - Are you prepared?

S'pore's Top 5 Killers

In affluent Singapore, cancer, heart disease and stroke remain the top killers.

Cancer accounted for almost one in three of the 16,392 deaths last year. Coming a close second was heart disease, which resulted in about 23 per cent of deaths.

Lung cancer remained the deadliest of all cancers in men, and breast cancer was the no. 1 killer for women.

While the number of deaths caused! by cancer and heart diseases increased by 8.6 per cent and 3.7 per cent respectively from the year before, death caused by stroke fell from 1,617 in 2005 to 1,457 last year.

Male Deaths in 2006

Cancer 2584
Heart Diseases 2254
Pneumonia 1141
Stroke 640
Accidents 255

Female Deaths in 2006

Cancer 2118
Heart Diseases 1536
Pneumonia 1087
Stroke 817
Diabetes 312

Source: Singapore Registry of Births and Deaths