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Thread: Any Ceiling for contribution of CPF OA?

  1. #16

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    FYI, DBS SGD borrowing cost between 1.3-1.4%. Too much cash at DBS/POSB bank



  2. #17

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    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.
    Good sharing cbsh38584.

    If you are cash rich, you can also overfund the UL policy which is what I did. Critical (break even) for me was yr 6th. I'm also banking on appreciation/ strength of USD. Back then it was in the $1.2s

    I also bought your friend's policy, believe it's pruterm vantage? The return is approx 3x of total premium paid. My assumption is though it's 'term', I'm unlikely to live that long.



  3. #18
    Join Date
    May 2012
    Posts
    3,605

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    Thanks for sharing guys!
    The three laws of Kelonguni:

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



  4. #19

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    Quote Originally Posted by cbsh38584 View Post
    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.
    Tokio Marine today is not the same as TM of yesteryears (Asia Insurance)....do ask your friend to continue to monitor closely their yearly declared bonus. Just a gentle advice....and I also have policies with them.



  5. #20
    Join Date
    Nov 2008
    Posts
    3,812

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    Quote Originally Posted by Kelonguni View Post
    Power indeed. I din know insurance can borrow also. Really steady.
    This is for Universal Life. Say you put premium of 350k for coverage of 1 mil. So you borrow 350k and in the event in f death, payout will be 1 mil minus 350k = 650k. Interest slightly above 1% for US$ borrowing. You just need to pay interest. Say 1.2% of 350k = 4.2k.
    You can then borrow 250k to buy US$ bond paying say 4%. Net payout = 4% minus 1.2% = 2.8% of 250k = 7k. Use the 7k to pay off the interest on the Universal Life.
    You need to know what to do when interest rate goes north.... That's all...

    In life, just plan worst case scenario and be prepared....



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