Do not be a burden to the next generation

As I have written before, kidney dialysis cost about $2400 a month. The impact of dialysis a year is $28,800. This is not a small figure if it is for a year, but with the uncertainty of how many years one need dialysis, the impact is quite great if for 10 years, the cost can be $288,000 not counting other medication and followup treatment.

Most of the us may have only 1 or 2 children, some may have more, but will this be a big burden for them to bear in time of need? Or are we prepared with such cost?

Will the next generation be able to shoulder such unforseen situation? The answer is quite obvious, even if one can afford it, the cost is quite a concern.

Other kind of treatment will be cancer, stroke or heart problem, with long term treatment and medication, the cost can be quite high.

I am not trying to scare you, but from my own experience, I am thankful that I have at least an Incomeshield in place for my mother that can cushion off the bill, though the co-pay of 10% is still needed. And I have 5 siblings with me shouldering the cost, which with the Incomeshield is not a burden and I am very thankful that I insured her since 1994 for Incomeshield. Every month the cost of dialysis and other cost is $400 a month, this is far cry from $2400 if without Incomeshield.

How can we not be a burden to the next generation and to take care of our own needs?

Basically, I have been writing about the need for Vivolife Plan , a wholelife dread disease plan that covers any lost of live, permanent total disability or on diagnosis of specified 30 dread diseases.

Incomeshield or any Shield Plan will then be the most basic plan that every one should have. I can say, without a life plan is still not as bad, but without a Shield Plan is disastrous.

I hope you will consider to review your family's plans to cater to future needs, so as to have peace of mind and not to burden the next generation or come to a stage when financial problem will set in, in event of a chronic illness.

I am sorry to be so straight to the point on this, as my experience with my own mother, has opened me up deeper into helping others to plan better.

Many are willing to pay instalments of $1000 a month to pay for a car that will go to scrap yard in 10 years, but to set aside $200 a month or so in a good plan for the financial security and peace of mind of a lifetime, many are no so willing. Why?

Vivolife also has a limited premium term of 10 years, to cover one wholelife.

When you buy a car, it is so much more expensive and goes to scrap in 10 years, but with a fraction of your commitment, you are covered wholelife after paying premium for 10 years as well. Which can drive you further?

I hope you can see the reality and priority of such plan.

Understand what you have been sold

This bancassurance and financial product sold through the banks, need more supervision.

I have written before, go to the bank with your older relatives or educate them on the need to understand what is sold to them.

If mis-selling is to be probed further, other products will also surfaced.

Many years back, a client's mother age 56 walked into a bank and was sold Anticipated Endowment without her knowing it is an insurance product with phrase "auntie, u put $3000 a year and every three years u get $1000, isn't this better than interest?" Auntie signed up and on year two her daughter felt something is wrong and asked me, and I told her it could be an anticipated endowment, and true enough it was. How can a housewife age 56 be able to pay $3000 a year for next 15 years? She then realised she was sold an insurance product just like that. She ended up having the policy lapsed as she cannot afford the second year premium.

Just 3 weeks ago, my 57 year old client told me the same story, she went to U.. Bank and wanted to renew her FD, and was sold a 10 year endowment with 5 years limited premium , and premium is $10,000+ a year. When premium due notice arrive this month, she was caught, and asked me how she can afford $10K a year forward? I advised her to seek FIDREC since U.. Bank is not solving the problem for her, keep delaying.

Today, in the name of independent financial advice, some are reviewing policies of clients and in the name of financial planning and analysis are advising replacing of policies subtlely. Some riders may not be appropriate, but definitely not plans that have been inforce for a long time, even CPFIS Endowment plan has been advised by so call, Financial Advisor to be terminated, and reinvest to other plans. For whose interest when such policies are being churned?

These are but just some of the stories we heard every now and then, Mini Bond and High Notes are just the high points of events.

More has been misled but not knowing how to seek re-dress and have been suffering in silence by bancassurance and banks selling financial products.

My bank relationship manager called me for MiniBonds too, I was caught in a few restructured products before, don't laugh, you can see we ourselves can also be misled by the relationship managers. I have asked specific questions, but answer were pack of lies until I discovered too late from the fine prints, by then, they argue with me that it was not said and the fine prints stated it, in relation to 100%principle redemption if I terminate in between. It was really a lie, and I thought I can trust them then.

MiniBonds was recommended to me as bonds, but my question to her was how it can be 5.1% when coupon rate for most bonds are about 3%.

This time round, I was fortunate that I did not place money in the MiniBonds as I remembered the lies they told me before.

All of us have to bear in mind to plan with the interest of our client at heart. Especially for the more elderly. It is hard earned money that we should not hard earn from them. Recommend appropriate plan for the interest of policyholders.

I can only say, your sin will find you out.

What is dollar cost averageing and who is buying now?

How many crisis have we been through?

Click on this chart to see.

FIDREC

I have written before to go to the banks with your folks, and just last week, I have a client who was misled into buying an insurance product walking into one of the bank to renew her FIXED DEPOSIT.

One can seek redress from the insurer, but some time it is frustrating and no solution is given.

I am writing to you this avenue, in a way, you can also use this against me, if I fail you in the future.

Go to FIDREC website and seek resolution for such mis-selling, if you have folks who are being misled or mis-sold a product not of their understanding.

The website is at http://www.fidrec.com.sg/website/faq.html

The Financial Industry Disputes Resolution Centre Ltd (FIDReC) is an independent and impartial institution specialising in the resolution of disputes between financial institutions and consumers. FIDReC subsumes the work of the Consumer Mediation Unit (CMU) of the Association of Banks in Singapore and the Insurance Disputes Resolution Organisation (IDRO).

FIDReC provides an affordable and accessible one-stop avenue for consumers to resolve their disputes with financial institutions. It also streamlines the dispute resolution processes across the entire financial sector of Singapore.

FIDReC provides an affordable avenue for consumers who do not have the resources to go to court or who do not want to pay hefty legal fees. It is staffed by full-time employees familiar with the relevant laws and practices.

FIDReC was initiated by the financial sector to make its services more professional, transparent, customer focused and service oriented. It was officially launched on 31 August 2005 by Mr Heng Swee Keat, Managing Director of the Monetary Authority of Singapore.

Proper planning towards old age

With my mum's situation (kidney dialysis) and pre-mature decease of two clients last month, I wanted to write, but is difficult to pen.

I have finalised the claims for the deceased, and payout is fast and prompt.Settled.

These are facts of life that some time, we refuse to face the reality to plan.

1. Planning to care for parents and self as old folk ourselves in future to come (vivolife & Shield Plan)

2. Financial Planning covering liabilities ( assets and family needs)

3. Planning to meet contingencies in pre-mature death ( Family needs and children's education )

4. Retirement planning ( Long term medical need and self financial independence )

These are milestones in life. It embodies Protection, Savings, Health care and Retirement. Still the same 4 core needs of life.

I know it will hit hard, as I relate and unfold the story, but how to bring it out nicely, so as not to hurt the feeling but with reality, is a challenge.

I can write in one long email or divide into 4 topics, but it will be long and some time difficult to accept.

Can write and think until cow come home, but in reality, it is a responsibility to look into the interest of planning it well for my clients too.

I hope we can take a moment to consider our responsibility to our parents, family and self, not to burden the next generation. Is mind boggling but is necessary to ponder and plan for the minimum we can.

Sorry, life is not to be so gloomy, plan it essentially right and enjoy the life with your family.

Essentially back to basics.

Life is fragile

A client of mine suddenly passed away on 22nd August of cardio-respiratory failure.

When I was reading the papers in the morning, I was shocked to see him in the orbituary.He is at the peak of his career at age 54. A humble and successful engineer. He has a good family life.

He has been a happy policyholder of Income since 1989.

Life is fragile.
------------------------------------------------------------------------------------------------- Today, 27th August got an SMS from another client, her husband was knocked down at a pedestrian crossing yesterday and died.

A university lecturer in his 40's. It is very tragic. What is happening?

This reminds myself of the need to look after the financial security of our clients.

My heart goes to the families in this time of lost.

Kidney Dialysis

The day that I dread that it should happen has happened.

I am not capitalising on this incident to sell you insurance.

My own mother has lapsed into need for kidney dialysis and will be discharged from hospital to start her dialysis in dialysis centre from tomorrow.

Many issues cropped up and it is an eye opener for me as I attempt to resolve them in the next few days.

I will probably write to share this experience with you once I have settled her down.

My concern has always been a Shield Plan is important, but it may not be enough but it surely cushion off a big bill and give the patient more peace of mind.

The renal nurse counselled the family that some simply do not have the means and has to be prepared for a painful death.

Sorry, I am not using this to solicit sales, but these 20 years in this industry, this is the second time I come across dialysis.

There are more to it than only insurance.

Life is fragile.

Public Service employee medical benefit under MSO Scheme

Many new public service employees who fall under MSO scheme, do not seem to understand that the 1% additional medisave paid to them is for them to take personal responsibility to take up a Shield Plan for hospital and surgical coverage. Many are sadly unaware of this and some end up hospitalised with no such plan in place to cushion off heavy hospitalisation needs.

Since 1994, when the MSO was introduced, NTUC Income and commercial insurers were asked to introduce a Shield Plan, but only NTUC Income is willing to underwrite and thus Incomeshield was offered. Many years after, commercial insurers find it viable and start to jump in to offer Shield Plans as well.

This is good as competition results in better Shield Plans today.

Following is excerpt taken from http://www.ps21.gov.sg/challenge/2007_01/staff/staff.html

Medical and life insurance – what every public officer should know

PUBLIC SERVICE MEDICAL BENEFITS

The prevailing medical benefit scheme in the Public Service is the Medisave-cum-Subsidised Outpatient (MSO) Scheme.Officers joining the Public Service after 1 January 1994 are placed on this scheme. Officers who were in service before this date are either on the Co-Payment on Ward Charges (CPW) or Comprehensive Co-Payment (CCS) scheme, where they will co-pay a portion of their inpatient and outpatient treatment in accordance with the co-payment percentage stipulated under each scheme.An officer under the MSO scheme enjoys medical subsidies, capped at $350 annually, for his outpatient treatment. He also receives an additional 1% Medisave contribution in lieu of inpatient subsidy.Unlike officers on the older CPW and CCS schemes who do not receive any benefits if they remain healthy, an MSO officer will receive the unused balance of his $350 outpatient entitlement and the 1% contribution, which are credited into his Medisave account, even if he remains healthy.

Insurance for Kidney patient

My mum's kidney is now left with 10% kidney function and if it fails further kidney dialysis is needed.

My friend's mother is already on kidney dialysis.Each month, Incomeshield pays $2000 for the dialysis, and other cost that is beyond the cover can be up to $700 more in expenses.

Say what one like, wholelife plan, especially those with limited premium payment may be good for last stage of one's life.I have 3 Living Policy myself taken over the years when there was no limited premium payment plan then. In my old age, I will continue these policies, so that I will not be a burden to the next generation. I wish limited premium plan was available then.Premium can be high for wholelife, but it gives one peace of mind in old age.

This is what I see in my friend's mother and my own mother now.

Shield Plan is the most basic important plan to have.

A critical illness wholelife plan of appropriate amount will be helpful.

Why burden the next generation?

Giving Back to society

At the last AGM, if you look at the NTUC Income Annual report, it will reveal the Chairman and Director's fees. The fees are so low, and imagine the responsibility the Board shoulder in guiding the Co-operative forward.

I wonder why these group of professionals serve on NTUC Income Board that pays them so low a fee. I believe these group of men are giving their service back to society seating on the Board, especially the Chairman.

If you have attended the last AGM, you will feel the heavy responsibility this Board shoulders in bringing and guiding NTUC Income forward for the benefit of policyholders, despite the low director fees they receives.

The mission statements of the Chairman and CEO are as follows if you click on the link below or go to NTUC Income website.

- CEO's Statement on Bonus Re-structure
- Chairman's Speech at the AGM
- FAQ on Bonus Re-structure

Low Cost check up for Chronic Illness for age 40 to 49

Government has announced an initiative to provide low cost medical checkup for chronic illness like diabetes, hypertension, etc.

This is a good initiative, but before you jump into it, this is my advice.

At least 6 months before you decide to do it, review all your medical insurance and life insurance needs.

Medical insurance like the Shield Plan and your protection and especially the critical illness needs, before you decide to take the checkup.

Well and good, after the test, you are certified healthy, BUT, if something crop up, then it will be a problem to get insured especially for Shield Plan without exclusion.

Perhaps Ministry of Health and CPF Board should come together to offer the Shield Plan first before one takes up the test.

This is just my advice that if you intend to do the checkup, do your own review first.

Look like we cannot assume 2% inflation to plan for retirement.

Are we poised for retirement, assuming 2% inflation? Look like inflation rates has to be raised and figures re-worked if one is to retire comfortably.

CPFLife - Good retirement plan with Timeline Planning

Hot topic of CPFLife

The estimated monthly payout from age 65 , with $134,000 in minimum sum.

The above estimated payouts are based on (a) estimated LIFE premiums for members who turn 55 years old in 2013, (b) entry into the CPF LIFE scheme at age 55, and (c) an interest rate of 4% pa for the Minimum Sum, with an additional 1% pa extra interest on the first $60,000 of CPF savings.

With the CPFLife forward, retirement fund after age 65 is clearer.

So if one need to take it easy from age 55 to 65, one will then need to plan to cover this gap for the next phase of retirement.

I have written on a subject Timeline planning, if you click on this Timeline Planning, it will lead you to the topic on how you can plot your assets, savings and investment to check your plans forward and to then know at a glance where your gap is and to plan to cover the gaps.

I think by doing a simple exercise of drawing a timeline, one should be able to see how far they have planned for their retirement and where their assets are positioned.

Are you prepared for your child's University fees?

Headlines

NTU to raise tuition fees by 4%
UNDERGRADUATE tuition fees at the Nanyang Technological University (NTU) are going up.Incoming students in the new academic year will have to pay an annual fee of $6,360 up about 4 percentage points from $6,100 last year, NTU said in a press release on Wednesday.

Varsities up tuition fees by 4% to 20% NUS, NTU, SMU to cushion effect with more financial aid and 'lock-in' system. -ST -->
TUITION fees at the three local universities will go up by between 4 per cent and 20 per cent for the new batch of undergraduates entering in August.
But to cushion their effect, all the varsities will introduce more financial help schemes, as well as a 'lock-in' fee structure first pioneered by the Singapore Management University (SMU), where students pay a set fee and will not be affected by future increases.




All of us probably can hang loose because school fees for the kids does not bother us as it is almost free from Primary school to College.

SMU course fee a year is about $7500 a year back.

With purchase of laptop as well. That cost slightly above $10,000 in total then to start first year in the University.

So you can imagine the Uni fees will be something most of us did not really bother, partly also because we can use our CPF as well. In the industry, people use to put an inflation of 6% on it, so the longer it is due, the fee will be higher in latter years. If you want to know how much it is, use a financial calculator and set the interest and term and compute the future value and you will know how much it will be.

Will you need a study loan? Some parents will think why let the kid start life with debt to pay after the Uni.

Start a savings plan early.

Think ! before you order your next fast food delivery

Experience counts. And young people just simply do not understand risk in their seeking for such fun.

My eldest daughter just passed her driving, and I will have her drive with me seating as passenger, and good thing my heart is still pretty strong otherwise I could end the trip with heart attack.

You can see that a new and young driver is not aware of speeding thrills but it kills. Their judgement is also poor, but many youngsters will dispute this once I stop writing.

The other point I feel very much to write about is young motorcyclist. The fatality of motorcyclist is very high and very young lives.

I ride a motorcycle myself and it is quite okie, but the way some drivers drive on the road is as if motorcyclist has no right to be on the road and of course on the other hand, some young riders are quite careless.

I wanted to discourage people from ordering fast food delivery as most are delivered by motorcyclist. When one rush on a motorcycle, it is very dangerous.

Can you sleep well if the poor delivery boy died while delivering your pizza or burger and he is someone's only child. Unless a proper safety is maintained, we should avoid ordering fast food delivery at the expense of a young life.

Singapore in Year 2010 - ERP network widened

take a look into the future .......... Don't laugh! It may happen!!

Happy New Year 2008

The year 2007 has gone into history as we stepped into year 2008.

2008 begin a new challenge for all of us as we move forward leaving behind the past.

Insurance agent's existence is based on meeting the sales target annually, well, at least I know I will still be around for year 2008 to work for my existence in 2009. I will always strive to remain in this business as far as I can. Your continue support and referrals will be helpful to me.

I may not be able to meet most of your service expectation, and will surely be lacking in service in some areas, thank you for bearing with me, and I do apologise for my lapse in service some time.

Should you need to look into any plans for the year, please do not hesitate to contact me.

Your referrals to me all these years have been helpful in helping me to meet my annual sales requirement.

May I take this opportunity to wish you and family, joy happiness and good health.

Review your Personal Accident Riders and H&S Riders

I met up with a friend who shown me his life policy taken 31 years ago.

The wholelife policy issued by Company A, has a RCC, a Personal Accident Rider with it.

He was insured $50,000 for accident death and partial disablement and premium is $117.50.

You may think this premium is cheap, but 31 years ago, he has been paying faithfully until today.

Some products are simply cheaper today and coverage is wider.

Ntuc Income Personal Accident Policy with $50,000 for accident death and partial disablement with $1000 medical included is only $35 per year in premium.

Click Personal Accident to take a look.

If you wish to cover 14 infectious disease to include SARS, Bird Flu, Dengue Fever, etc, click PAID

The other rider worth reviewing is Convertible Term and Term riders.

If you have a Hospital & Surgical Rider and has no existing illness now, it is also better to look at Enhanced Incomeshield Plans that covers one wholelife.

Click at the hyperlink and make a comparison.