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Thread: Any Ceiling for contribution of CPF OA?

  1. #11

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    Quote Originally Posted by Kelonguni View Post
    What are your views regarding insurance Bro CBSH ?

    Life insurance is used to protect the life insured in the event of death. The premium that you paid is split into two portions. A small portion of your premium will go to the participating fund of the insurer and the remaining portion will be used to pay the insurance protection cost.
    Life insurance is a small savings and high protection insurance. Because there is a savings element in life insurance, it will have a certain cash value which is declared yearly as reversionary bonus by the insurer.


    Term Insurance
    Term insurance is a rather simple product. Term insurance is pure protection and nothing else. The entire premium paid goes towards insurance protection cost. Therefore, there is no cash value for term insurance. Term insurance can be used to cover for temporary needs. Age 65 or 75 or 80.


    Buy term and invest the rest.
    You will save some cost by buying term insurance. The second part of this statement is “Invest the rest”. You need to invest the rest. If a person is habituat a spender that spends the amount that you save from buying term insurance, then I would rather prefer you go get a life insurance.


    Bought my 1st life whole insurance policy when I just start working in 1988, premium $231/year ($10,000 sum assured) which is a small amt for a start.
    The projected non guarantee between 5.25% to 9.25% at that time. After 27 yrs, the actual return is 1.8% if I will to terminate now.
    That mean I paid a total of $6237 for 27 yrs. I get back $8060 which is est 1.8% return.

    So better buy term at young age & invest the rest either through a retail bond or saving plan etc etc.



  2. #12
    Join Date
    May 2012
    Posts
    3,682

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    Thanks for advice but the coverage seems very minimal in your case.

    Quote Originally Posted by cbsh38584 View Post
    Life insurance is used to protect the life insured in the event of death. The premium that you paid is split into two portions. A small portion of your premium will go to the participating fund of the insurer and the remaining portion will be used to pay the insurance protection cost.
    Life insurance is a small savings and high protection insurance. Because there is a savings element in life insurance, it will have a certain cash value which is declared yearly as reversionary bonus by the insurer.


    Term Insurance
    Term insurance is a rather simple product. Term insurance is pure protection and nothing else. The entire premium paid goes towards insurance protection cost. Therefore, there is no cash value for term insurance. Term insurance can be used to cover for temporary needs. Age 65 or 75 or 80.


    Buy term and invest the rest.
    You will save some cost by buying term insurance. The second part of this statement is “Invest the rest”. You need to invest the rest. If a person is habituat a spender that spends the amount that you save from buying term insurance, then I would rather prefer you go get a life insurance.


    Bought my 1st life whole insurance policy when I just start working in 1988, premium $231/year ($10,000 sum assured) which is a small amt for a start.
    The projected non guarantee between 5.25% to 9.25% at that time. After 27 yrs, the actual return is 1.8% if I will to terminate now.
    That mean I paid a total of $6237 for 27 yrs. I get back $8060 which is est 1.8% return.

    So better buy term at young age & invest the rest either through a retail bond or saving plan etc etc.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.



  3. #13

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    Quote Originally Posted by Kelonguni View Post
    Thanks for advice but the coverage seems very minimal in your case.
    My coverage for whole + CI is $350k. I bought AIA Universal life plan (legacy plan) in 2013 coverage US$1m.
    Lump sum Premium paid is US$260k. I borrowed US$260k @ between 1.1% (2012) to 1.6%(now).Critical ( Breakeven)
    year est 10-12 yrs time.

    It is so much cheaper than my lady friend who bought a term policy (insured S$1m up to age 99 ) from prudential &
    premium paid is S$9k / yr.

    I bought CI term insurance ($431/yr - protection $171k) for both of my sons from prudential.



  4. #14
    Join Date
    May 2012
    Posts
    3,682

    Default

    Power indeed. I din know insurance can borrow also. Really steady.

    Quote Originally Posted by cbsh38584 View Post
    My coverage for whole + CI is $350k. I bought AIA Universal life plan (legacy plan) in 2013 coverage US$1m.
    Lump sum Premium paid is US$260k. I borrowed US$260k @ between 1.1% (2012) to 1.6%(now).Critical ( Breakeven)
    year est 10-12 yrs time.

    It is so much cheaper than my lady friend who bought a term policy (insured S$1m up to age 99 ) from prudential &
    premium paid is S$9k / yr.

    I bought CI term insurance ($431/yr - protection $171k) for both of my sons from prudential.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.



  5. #15

    Default

    Quote Originally Posted by Kelonguni View Post
    Power indeed. I din know insurance can borrow also. Really steady.
    My friend bought Tokio marine saving plan from CIMB. Projected return est 4%+ for 15 yrs.
    He borrows SGD loan @ 1.6% from CIMB to buy this tokio marine saving plan.(LTV 85%).
    Nett return >10% if the interest rate continue to be low . If the borrowing cost >2.5%. He will
    reduce the SGD loan.



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