All You Need To Know About Child Insurance

Parents would only settle for the best towards their young kids! But, the price tag for good things definitely would not come cheap. The increasing cost of living and the inadequate income most of us have, coping up would be hard. The lack of sufficient fund and the ever so real threat of inflation would be the main issues that hinder us from acquiring an insurance plan to your kids. High praises to parents who set aside money for the future of their children through child plan of insurance. If you want to invest for your child’s future, investing early is not bad idea.

All of us are familiar with the traditional insurance plans. The insurance where money is paid into various ways for your child’s life is called money back plans. We all want our money to be well protected at the same time keeps growing. This is very possible with insurance investment plans, which are unit linked. Always bear in mind that savings and investment should be side by side. Customized flexible plans as per your requirement are offered various private and public insurance companies, but as you dig deeper to know them, it holds advantages and disadvantage to the holder.

While considering an insurance plan, what are the key features you need to take up?

To secure your child’s future, his or her insurance plan must cover the needed key aspects. Monetary goals must be met in various life stages of the child, and that is how the insurance plan should work. At the proper time, either marriage or for higher education, the requirements should be completed. How could you possibly secure the child’s future when something unsuspected happens, like the untimely demised of the parents? An insurance plan could very well secure a kids future. It should consist of a premium waiver benefit which covers your financial needs even in absence, able to covers illnesses, and most importantly death benefits. Important aspects of life such as marriage, education, and career, the insurance is able and adequate to support the holder. Most of all, the versatility of the plan is based on choice of terms and payment.

Targeting The Proper Plan For Your Child

For sure by now, you already have ideas on what are the key factors in a child insurance plan. The insurance market with its wide variety often creates some sort of confusion amongst consumer. The power package of big name insurance companies provides financially towards its holders; able to give immediate support in case an emergency happens. Fewer technicalities would mean less headache for the potential customer. Obviously, no one would avail a plan if they would not understand it. Because of the economic recession that struck the world lately, and some financial fiasco regarding insurance companies, people are thinking twice in availing insurance for their children or any other type of insurance for that matter. It is up for them to win back the trust of the public, erasing the stigma that ruined their reputation.

Car Insurance Quotes – Essential in Helping Find the Best Coverage

Do you feel you are paying a too high monthly fee on your car insurance? Do you envy other people’s insurance? These are legit questions that you can ask if you are not satisfied with your current one. After all, the best car insurance is not always those that have the highest price tags. There are many less expensive insurances for the car that offer just as good – if not better – coverage in protecting yourself from accidents and other liabilities while on the road.

If you are not satisfied enough with your current insurance, you can always switch policy or insurance company altogether. Cheap insurance policies that can offer comprehensive coverage should not be hard to come by – if you some homework on your end. To not make the same mistake, you should ask for car insurance quotes from various insurance companies and compare the quotes. You will be pleasantly surprised by how this little research can get you the most competitive price and deal.

Saving money on car insurance can help reduce your financial burden, especially if you have a tight budget. By paying less amount of insurance premium every month, you have the opportunity to allocate the money to something else instead. But don’t consider dropping the car insurance altogether, since you do need the protection that the policy has to offer. Just get a cheaper car insurance that still offers good protection.

There are some steps that you can do to reduce your monthly insurance cost. Switching to using smaller car can significantly reduce the monthly cost you have to pay for insurance, especially since the cost of the policy depend highly on what car you drive and the kind of protection coverage you want to be protected against. If you do not really utilize all the space that your current car has, better switch to a more compact model.

One way to reduce cost is by installing an immobilizer, alarm and a tracker in the car. If you have one or all of these things, the extra protection they provide to the car can reduce the monthly cost of your car insurance. Investing on car security gadgets, since they are not that expensive, will not only bring extra protection to the car, but it will also open the possibility of negotiating a new price with the insurance company.

In conclusion, the most expensive car insurance doesn’t always equal as the best one. Do some comparison of many car insurance quotes to get the best deal possible.

Personal Financial Planning – Insurance

Insurance is the most common risk transfer technique in risk management.

There are 3 layers of insurance protection.

Firstly, the social layer, provided by national schemes. For Singapore, it will be the insurance from CPF like DPS, HPS, Medishield, Eldershild, CPF Life. They are usually the most basic required and premiums are most affordable. Secondly, the group layer. This is coverage provided by employers, unions or associations. Their premiums are also relatively affordable. However, they will no longer cover when leaving the organization and there is usually a age limit, resulting in a drop in coverage when it is most needed. Thirdly, the individual layer. This is purchased from insurers at the personal level to supplement the first two layers. Enhancing the coverage in scope and depth.

Classes of insurance:
– Life Insurance
– Investment-Linked Policy (ILP)
– Health Insurance
– Personal General Insurance

Life Insurance
The 3 main types of traditional life insurance are term, whole life and endowments. The most basic term policy is the Dependent Protection Scheme (DPS) by CPF. The premiums are the lowest in Singapore and can be paid by CPF OA. However, the limitation is that coverage is up to $46,000 and age 60. Another decreasing term policy by CPF is the Home Protection Scheme (HPS). A compulsory mortgage insurance for those using CPF to purchase their properties.

Investment-Linked Policy (ILP)
ILPs are mainly yearly renewable term insurance coupled with investment in unit trusts and the addition of more charges. They are subject to a different set of rulings, do not need trustees and fund selection is restricted to those within the insurer umbrella of funds. One advantage is the charges are transparent. However, they are numerous, tedious to compute and allows so much variation that it aims to confuse. They include:

(1) Initial sales charge – This is a one off charge factored into the bid-offer spread of the fund. Usually about 3 to 5% of the investment amount.
(2) Fund management fee – This is paid to the fund manager regardless of the performance of the fund. Usually 0.5 to 2% per annum and it is priced into (deducted from) the unit price.
(3) Benefit charge – The insurance coverage premium including all the riders are funded by deducting units. The premium is usually increasing based on the new age band.
(4) Policy fees – A flat monthly fee is charged regardless of the premium amount, to cover administrative expenses.
(5) Administrative charges – Additional fees paid for record keeping, transaction services, bank services, trustee services, and miscellaneous fees. Usually about 0.2 to 0.4% per annum and it is priced in as well.
(6) Fund switching charges – This will be charged when changing investment funds. Usually free for one switch per year.
(7) Premium holiday charges – This will be charged when the premium holiday feature is activated.
(8) Surrender charges – Charges imposed when surrendering the policy.
(9) Allocation – Amount of premiums used to purchase units is usually not 100% for the initial years. Example: 20% for 1st year; 40% for 2nd year; 60% for 3rd year; 80% for 4th year; before finally 100% from 5th year onwards.
Suitability of ILPs will be for those who have sufficient insurance cover and have excess budget which they would like to use to support their agents instead of investing in unit trusts directly.

Healthy Insurance

(1) MediShield and private shield plans
MediShield is the social insurance that provides the most basic cover. The disadvantages are that it has many sub limits for each of the covered expenses, expires at age 85 and provides coverage mainly for class B2/C wards. It is also subject to deductibles and co-insurance. It is paid by MediSave. Some employers may provide the second layer of cover. However, this cover will end when leaving the employer. Medical coverage is most needed in retirement, as a result, taking up a plan then will be subject to strict underwriting conditions (i.e. it will not be accepted or existing medical conditions will be excluded). The private shield plans allow coverage beyond age 85, but it needs to be taken before age 75. It usually does not have sub limits as it is “As Charged” coverage. Some insurers even cover the deductibles and co-insurance if a rider is purchased on top of the basic plan. The MOH website provides a comprehensive comparison of all the available private shield plans. The plan is most suitable for covering medical and ongoing treatments. With rising medical cost, this insurance is most necessary to avoid cost being an issue to seek the proper medical treatment.

(2) Critical illness
It provides a lump sum benefit if the insured is diagnosed to be suffering from one of the 30 selected illness or surgical procedure. The 30 illness are chosen from a list of illnesses by the Life Insurance Association of Singapore (LIA). Their definitions have all been standardized by the LIA. The 2 types of coverage are the acceleration and additional. The acceleration coverage shares the sum assured with the death/TPD benefit. The additional coverage is a separate cover on top of the basic sum assured, hence it can be higher than the basic sum. Variations include being issued as a stand-alone policy or a rider, having an early payout for the initial stages of the illness, and providing specific coverage for only one illness like cancer. It is most suitable to provide for treatment cost that may not be included in the HealthShield like expensive overseas or alternative/experimental treatment as well as additional care giving expenses incurred when critical illness is diagnosed.

(3) Disability income
It provides monthly income in the event the insured is unable to work as a result of an accident or illness.
The definition of disability varies in that the inability to work is confined to the insured’s own occupation, similar occupation or any occupation. It is most suitable to protect against the loss of income so as to maintain the living expenses in the event of disability and differs from TPD in that the definition is less stringent.

(4) Hospital cash
It provides a daily cash benefit for each day of hospitalization. It is usually limited to a specified number of days and a life time limit. It is most suitable for the self employed who will suffer income loss as a result of hospitalization.

(5) ElderShield and private plans
It provides a monthly benefit if the insured is unable to perform 3 out of the 6 activities of daily living (ADLs), namely feeding, bathing, toileting, dressing, mobility and transferring. ElderShield is the most basic level of coverage, providing $300 or $400 monthly for 60 or 72 months. It can be paid with MediSave. The private plans enhances these plans to provide higher benefits and longer duration of payout. It can be paid with MediSave up to a limit. It is most suitable to cover disability for those aged 40 and above. TPD coverage usually ends at age 60/65, but this provides life time coverage. And it is usually limited payment of premiums.

Personal General Insurance

(1) Packaged household
It provides coverage for the building and contents.
It is usually compulsory when a person takes up a housing loan.

(2) Valuable articles
It provides coverage for items with high monetary value like antiques, fine arts, etc.
It can be an itemized or blanket coverage.
It is usually for those who keep valuable items in their homes like art or antique collectors.

(3) Personal accident
It provides coverage for bodily injury caused by solely, directly, independent, external, violent and visible means.
It is most suitable for those with a budget constraint or are involved in blue collar work or are not able to obtain any of the traditional insurance due to medical underwriting restrictions.

(4) Motor
It is a compulsory insurance available as 3 types: Third party, Third party fire and theft (TPFT) and Comprehensive. Premiums will vary between insurers depending on the make, model, age of the car, driver’s age, occupation, experience. Note the amount of excess applicable and it is advisable to purchase NCD protection if NCD has accumulated to 50%.

Based on the risk management plan, those low frequency, high severity areas should be covered with the appropriate insurance. As insurance coverage and premiums vary between insurers, it will be prudent to get quotes from as many as possible. Insurance is usually a life long commitment, it will be wise to ensure the most value and suitable one is taken up.

Life Insurance and Types of Life Insurance

The first concept of insurance dates back to over 4000 years ago. However, insurance as it is known today started in England as far back as the 17th century. Over the years insurance, in its many forms including both life and non-life insurance, has grown and developed to become a sophisticated mechanism. Today, we have many different types of insurance and non-life insurance that can be tailor-made to cater to any person’s specific needs and wants.

When we look at life insurance policies today, we can choose from a wide selection of plans. One of the main reasons why people opt for life insurance plans is so that they have certain amount of money locked away to take care of them when they are no longer capable of working and earning money. Retirement plans or pension plans are specifically designed to help provide for the insured after a certain age, when the amount matures, so the insured can enjoy retirement to the fullest.

Most parents are concerned about providing for their child’s education, when their child is old enough to go to college or university. There are a number of Child Plans that help parents take care of this concern. In fact, there are various child plans that help parents start saving from the time their child is very young so they have built up enough when it is time for their child to go for further studies.

There are a number of insurance plans that are linked to market instruments that will help your money grow depending on how well the market is doing. These can be called growth plans. There are various types of growth plans depending on the risk appetite of the insured. There are also insurance plans that are more conservative for the insured who prefers a steady return investments, even though the potential earning is not as high as it would be if it was linked to market investments. These savings plans are a good idea as they help you put money aside that will accumulate and earn interest and serve you later in life.

Many life insurance plans are taken to help provide financial relief to the insured in case of a medical emergency, taking into consideration the rising costs of medical expenses. Various health plans help to alleviate the burden of financial worry, if the insured invests a little money every month or year towards a health plan. These are also known as mediclaim plans.

Two additional advantages of insurance plans are, firstly you can get various tax benefits by investing in life insurance policies and secondly you can avail of group plans that will protect you and your entire family.

Your Options When Seeking Life Insurance For People Over 65

Life insurance called as life assurance. In this there is a bond between policy holder and insurance company. There are different plans according to age like for children’s, money back policy for different ages. The minimum age of plan is 18 years and the maximum age is 60 years.

There are different life insurance premiums like monthly, yearly as well as quarterly according to the convince of the policy holder. The premiums qualify for the section 88 of the income tax act and the returns are fully exempted under Sec 10D.

It has two major categories:
Protection life insurance
Investment plans

In protection plans the customer gives a total amount (lump some). They are designed to provide benefit. The second one is the investment in which is to make possible growth of capital.

There are different key factor to be make careful of insurance plans.
1. Protection or death benefit(Face amount)
2. The premiums which the policy holder deposits
3. Term of the insurance plan.

The face amount which the insurance company sets the protection of policy holder is constant & is for a particular year or years. The premiums are almost same or may increase. There are different terms of your health. It may be 5, 10, 15,20,25,30 as well as 35 years.

There are four types covered for protecting your health like protection plans, premium plans, and individual as well as wealth creation policies.

The protection plans are those plans which are decided to make protection of your family. The main objective of this protection plans is to provide protection to their family instead of single protection. The premium plans are quite traditional and the policy holder will get the money back policies after a stimulated period of time. The individual plans are basically short term plans or long tern plans. The long term plans are those in which the policy holder gets the assured returns after your plan is completed. Long term policies are for 10, 15, 20 years etc according to the needs of the policy holder. The second type are short plans for short duration like 1, 2 years. Last type is the wealth insurance plan. In this plan the plans which flow your money which the consumer and secondly they make lot of payments.