Okay gaining better and better understanding from the sharing thus far. For those inclined to do BTIR, there is a share builder plan from Philip. However wouldn't the frequent purchase (which involves fees and transaction cost) eat into the Investment return?
It seems there are hurdles to clear, like break even from fund cost, fees, and transaction cost before starting to earn some value. And for those that are starting off with their monthly salary, it may seems a daunting task, or at least to me personally.
From the articles I have come across so far, people just have to start somewhere. Because time waits for no Man. Lose time and lose the ability to compound as effective.
Side note, for ILP, the fact is there. The cost are all calculated, that's it takes 10 years to breakeven with the principal amount paid.
it takes a lot of gut to cut losses and terminate insurance policies..
most pple won't as there is this 'persistent gd sense' of security
yeah, unlikely i will do so even if its 80k on my life. been paying since i graduated.
I will be terminating my ILP very soon. Still in the red after 14years...
(24-04-2013, 08:22 PM)Traumfanger Wrote: [ -> ]Side note, for ILP, the fact is there. The cost are all calculated, that's it takes 10 years to breakeven with the principal amount paid.
Is this based on some guarantee column on the Benefit Illustration? Or based on 5% or 9% Return? Can attach the BI here? I will be interested in such a ILP, and I will get the highest possible sum insured, + investing in the fund that can possibly give the highest return, and yet it guarantee that if everything fails, I still will get back all my principal after 10years.
40 years old liao. I just received my Aviva ElderShield proposal last night. Its automatic inclusion by law once a person reaches 40 yrs of age unless one opt out from it.
The premium is fixed at $176+ and payable till age 65. The payout is S$400 per month for maximum of 72 months if one is unable to perform 3 activities of daily living.
Do you people think i should opt out? I think the payout is quite miserable. Taking inflation into account (assume 2.5%) by the time i am 65 or 75 years old, S$400 is like S$200+ in today's $. Not even enough to feed a maid who is hired to take care of me.
Medishield or other shield are important. Those that I mentioned considering terminating refer to life and endowment policies. Maybe other buddies like yo share more views?plus I think cpf also have their eldershield plan.
Ha! Ha!
My wife & i refuse to buy any life insurance until my age of 40. At this age i have a son. Even then till now i still think life insurance is suck-eggs. So the joke is i have bought only $25K with a rider of 25K for myself and wife each. The rider portion has expired or lapsed. (NO body wants to sell or even mentions Term insurance lah! at that time).
The joke is i also has bought 25K life insurance for my son-entry age 0 because he has not reach 1 year old. Can you imagine entry age = ZERO; Date policy matured at 55 years. Now he is reaching 25.
Please don't laugh in front of me. It is alright if you laugh behind my back lah!
Ha! Ha!
(25-04-2013, 12:42 PM)Bibi Wrote: [ -> ]40 years old liao. I just received my Aviva ElderShield proposal last night. Its automatic inclusion by law once a person reaches 40 yrs of age unless one opt out from it.
The premium is fixed at $176+ and payable till age 65. The payout is S$400 per month for maximum of 72 months if one is unable to perform 3 activities of daily living.
Do you people think i should opt out? I think the payout is quite miserable. Taking inflation into account (assume 2.5%) by the time i am 65 or 75 years old, S$400 is like S$200+ in today's $. Not even enough to feed a maid who is hired to take care of me.
I will opt out when I reach 40. It's too little do be any form of "insurance". Eat also not enough, sleep also not enough. Furthermore, it only last for 6yrs. I think a term place with TPD which pay on similar disability will be a better choice. And I think it's cheaper too. Question is... Do I need it?
(25-04-2013, 12:47 PM)pianist Wrote: [ -> ]Medishield or other shield are important. Those that I mentioned considering terminating refer to life and endowment policies. Maybe other buddies like yo share more views?plus I think cpf also have their eldershield plan.
If I not wrong, CPF "sub out" Eldershield to Aviva, Great Eastern and NTUC. So when reach 40, will be automatic allocate to one of the 3 insurers. Please correct me if I am wrong.
(25-04-2013, 12:48 PM)Temperament Wrote: [ -> ]Ha! Ha!
My wife & i refuse to buy any life insurance until my age of 40. At this age i have a son. Even then till now i still think life insurance is suck-eggs. So the joke is i have bought only $25K with a rider of 25K for myself and wife each. The rider portion has expired or lapsed. (NO body wants to sell or even mentions Term insurance lah! at that time).
The joke is i also has bought 25K life insurance for my son-entry age 0 because he has not reach 1 year old. Can you imagine entry age = ZERO; Date policy matured at 55 years. Now he is reaching 25.
Please don't laugh in front of me. It is alright if you laugh behind my back lah!
Ha! Ha!
Nothing to laugh about. If you have enough, why need insurance? This is one of the question which I will always ask.
(25-04-2013, 12:42 PM)Bibi Wrote: [ -> ]The premium is fixed at $176+ and payable till age 65. The payout is S$400 per month for maximum of 72 months if one is unable to perform 3 activities of daily living.
at $176 per mth, the total returns assuming 5% rate and a tenor of 25 years (40 to 65 yrs old) is $8820 (i.e. if one starts at 40, invests $176 per mth at 5% for 25 years, this is the sum of money at 65)
the total potential payout == 400*72= $28800 payable on failing to do 3 out of the 6 activities of washing, dressing, feeding, toileting, mobility and transferring.
payout ratio = 28800/8820 = 3.3 x
personally, if i treat this as a bet (since i do not want it to happen), a payout ratio of 3 times is too expensive - i will prefer a ratio of 15-20 times given this is just a bet.
unfortunately like it or dun like it, insurance is here and will stay.
for starters with hardly any savings, to pay tens of dollars per month for that security with or without returns is not an difficult decision for most to make.