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Protection

Free Insurance for 13, 000 Families

Monday, 12 April 2010 08:00 Ginny Lim
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NTUC Income has just launched the Income Family Micro-Insurance Scheme (IFMIS) for the 13,000 families which have children receiving childcare, kindergarten and student care subsideis under the Comcare umbrella.

IFMIS provides insurance coverage for the main income earner. A payout of $5,000 will be made to the family if the main income earner dies or becomes totally and permanently disabled. The families do not need to sign up for the scheme as the insurance coverage is extended automatically to the families of the recipients in the three Comcare subsidy schemes. And there is NO underwriting and no exclusion of pre-existing illness!

This scheme is inline with NTUC Income's Social Enterprise role to help the society through its core epxertise in insurance and its social mission.

NTUC Income is also channelling $3 million towards other charity and community projects, besides the IFMIS scheme. The beneficiaries include U Care Fund, The Singapore Childen's Society, Assumption Pathway School and Moral Home.

 

For Everyone: Work Injury Compensation Act

Tuesday, 01 April 2008 08:00 Ginny Lim
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With effect from 1 April 2008, Work Injury Compensation Act (WICA) replaces the Workmen's Compensation Act (WCA). The current scope only covers manual workers and non-manual workers earning less than $1,600 per month. The scope isnowwidened to cover non-manuals workers earning above $1,600 per month. Though buying insurance for this group of workers is not compulsary, employer is still liable for the compensation if a valid claim arises. The minimum and maximum to the claim for death and Permanent Incapacity for all workders are as follows:

  Minimum Maximum
Death $47,000 $140,000
Permanent Incapacity $60,000 $180,000

 

 

 

So it makes sense for employer to purchase insurance for all workers to transfer the risk to insurers.

Last Updated on Friday, 30 April 2010 05:03
 

Pyramid of Insurance Needs

Thursday, 19 July 2007 08:00 Ginny Lim
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pyramidofinsurance.png

The Pyramid of Insurance Needs shows the increasing level of insurance that everyone needs. The most important insurance is to cover ourselves adequately on health, the basic one being the national hospitalization plan, the integrated Medishield plan offers by insurer that covers the hospital bill completely. This is important as we should concentrate on getting ourselves well and continue with our normal life instead of worrying on the financial burden.

Next on the pyramid is protection against death, total permanent disability and critical illness. This is rarer than hospitalization, but if it happens, it will cause a lot of financial and emotional strain on the family. We would like our family members to continue their life as normally as possible. Hence, a comprehensive coverage with sufficient payout will help our family members to tide over the difficult period.

After we have adequately covered ourselves, we will then seek for opportunity to save and invest to ensure a continuity of good life for our family members. Family with children should consider education policy to ensure and lock down a fixed sum of money for the children’s tertiary education for a proper head-start in life.

And when we reach age 55, we should buy an annuity insurance policy that will pay us income, with increasing amount every year, as long as we live. We should be enjoying our retirement years, without worrying of lacking of income to sustain our everyday expenses.

Download the Financial Needs Analysis spreadsheet now to determine the amount of funds required for the various areas of insurance coverage!

 

Ginny Lim Gek Eng
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Web : www.aboutfinancialplanning.net

Last Updated on Friday, 30 April 2010 05:25
 

Life Protection

Thursday, 19 July 2007 08:00 Ginny Lim
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Life protection insurance is a life insurance policy that is designed to cover the insured for life. It pays a lump sum of money upon death, and about 5 installments of payout upon Total Permanent Disability of the insured. Life insurance policy usually also comes with Critical Illness coverage that also pays a lump sum upon the diagnosis of the covered critical illness defined by the insurer.

The following three types of life insurance are currently sold in the market.

Type of Life PolicyCoverage
Traditional Whole Life Policy Whole life
Term Policy Up to a specified age, say 60
Investment-linked Life Policy As long as it is in-force

Read more...
Last Updated on Friday, 30 April 2010 05:02
 


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Newsflash

Prudential Buy AIA for S$50b, 05 Mar 2010

Prudential has just confirmed that it intends to pay US$35.5 billlion (S$50billion) to buy American International Assurance (AIA), the Asian life insurance arm of American International Group (AIG).

This deal will help AIG to pay back some of its US$182.5 billion debt to the US government. Prudential will pay US$25 billion in cash and US$10.5 billion in stocks and other securities for AIA. Prudential will raise the cash of US$25 billion by selling US$20 billion worth of shares and another US$5 billion by selling bonds. AIG accepted Prudential’s offer since the price offered is much better than the initial public offering of AIA in Hong Kong which could raise for about US$15 billion. Together with the earlier purchase of UOB Life Assurance (now named Prudential Life Assurance) from UOB for $428 million, Prudential will becomes the largest life insurer in Singapore, Hong Kong, Malaysia, Thailand, Indonesia, the Philippines and Vietnam.

There are likely to have some repercussion from this take-over. There may be job losses due to duplicate functions such as Finance and Human Resource. However, the combined sales force of 7,800 will not be affected. Prudential share price tumbles by almost 20% in just two days in March 2010, amid concern over the price of the deal. Prudential is currently valued at about S$25.8 billion. With the rights issue to be offered, there will be mass dilution to the current share price. AIA policyholders should not be too concerned on their policy contracts since Prudential is obligated to honour the original contracts.