August 27th, 2010 | Published in Health, Insurance | Add a comment
Recently I have met a client, a female who is concerned about payout in event of being diagnosed with cancer, which is the benefit under critical illness portion of her insurance policy. Being a head nurse and her husband, a doctor, radiologist to be exact, they are quite familiar with the medical terms in the small print. After consultation with them, I decided on a post.
May 27th, 2010 | Published in Insurance | Add a comment
Thought of putting this comparison up on the website. This is still valid 1H2010. These tables show the insurance charges for Investment Linked Policies of different companies as they are printed with every benefit illustration. The insurance charges forms the major part of the cost to the policy holder, others includes administration fees, fund switching fees and so on.
There is really a difference in cost. It is not convenient to place it on the website. Contact me if you wish to know more.
March 23rd, 2010 | Published in Insurance, Life, Managing Wealth | Add a comment
Universal Life Insurance can be used for dividing your estate equally as was done in this case. The same solutions apply for situations where other single major asset, such as property, forms the major part of your estate.
Mr Tan is approaching 65 and wishes to do some estate planning. His estate consisted of a business, valued at $8 million, a landed property worth $2.5 million and $2 million in cash. Mr Tan has a wife, two sons and a daughter. He is semi-retired from the business and handing the business over to the eldest son, who is the only one interested in running the business.
He is not worried about the wife, should he pass away, as she is close to the children and has ample savings. However, he is worried about how he can distribute the estate equally. The main worry is the business. Should he hand major ownership of the business to the eldest son, it will not be fair. Should he distribute the business equally, the two youngest children will be more interested to sell the business. This will dilute the ownership of the business and disrupt expansion plans the eldest son has. Secondly, it will be difficult to split the inheritance of the landed property.
March 9th, 2010 | Published in Insurance, Life, Managing Wealth | Add a comment
A recent article from Paul Sullivan a dedicated reporter covering high-net-worth investors for New York Times, discussed about the importance of looking at hedging the Human Capital of the client, not just the Investment Portfolio.
Learning How to Hedge Yourself, and Not Just Your Portfolio
The idea of hedging a person’s future potential income is not new. This is the sole basis of insurance. In the earlier days, insurance companies have been championing this, though their more recent focus have unfortunately became advertising and enticing customers with promotions.
Here are some thought provoking ideas in the piece.
March 8th, 2010 | Published in Insurance, Life, Managing Wealth | Add a comment
The following is a real life case study.
Mdm Hayashi is 60 years old. She was the second wife of her deceased husband, late Mr Cheong, who was also her second husband. She married Mr Cheong when she was in her late forties and Mr Cheong in his early fifties. She has 2 adult children still in Japan from her first marriage and Mr Cheong has 2 adult children from his first marriage living and working in Singapore.
When Mr Cheong passed away 3 years ago, he left in his Will 55% of his assets to Mdm Hayashi and the rest to his 2 children. Mdm Hayashi’s current networth of $5 million is almost fully from this inheritance. Mr Cheong’s 2 children are both doing really well financially. However, it is Mdm Hayashi’s wish and the step children’s expectation that upon Mdm Hayashi’s passing, most of the wealth from Mr Cheong should be inherited by the step children instead of Mdm Hayashi’s Japanese biological children.
March 1st, 2010 | Published in Financial Advisory, Insurance, Investment Advice, Wealth Management | Add a comment
Recently, I have been asked this question by a friend of mine. “What can you do that Prudential cannot do?” It is not an easy question to answer especially with when the public have preconceived impressions. Let me answer the question here.
Prudential is a huge company. If Prudential is willing, there is certainly very little that they cannot achieve. However, the insurance product provider with an asset management arm, is not interested in several aspects of wealth management business. For insurance companies, the sales force, insurance agents, are not under the companies’ payroll. Therefore, the sales force should not be mistaken for Prudential itself. I will rephrase the question to, “What can I provide that other Insurance Advisers, even other Financial Advisers cannot?”
There are a few areas:
Read the rest of this entry »
October 15th, 2009 | Published in Insurance | Add a comment
Firstly for those who have only a vague idea of what a Investment-Linked Policy (ILP) is do refer to this information sheet
For those who still have no idea or wants an in depth understanding, you can study the ILP Guide
Purpose of the article is to show why you should not place priority on investment returns when purchasing Investment Linked Policy. Please be an intellectual and be wise not to jump into conclusions that all ILPs are bad and should never be bought. The merits of ILP for protection will be further discussed.
October 14th, 2009 | Published in Insurance, Singapore | Add a comment
Investment-linked products beneficial in the long term
After hearing so much AIA bashing, among clients, advisers and in the internet, it is refreshing to hear that there is a client who is happy with his AIA investment linked product. From the details he gave, it does seems like he entered into a fair deal. In my experience, the numbers are true and fit for his profile. He is right too as there are some good points about an investment linked product, as well as bad.
Here comes the interesting thing. For that particular product, AIA is not the company with the best deal, this I know for a fact. As I have done research for more than 10 companies. Contact me if you wish to know more.
August 22nd, 2009 | Published in Insurance, Singapore | Add a comment
I believe a lot of other sites will pick this up and leverage on this article published in The Straits Times as a marketing tool. I’m going to appeal to consumers not to jump into conclusions. Please find out more on what is the purpose and cost of insurance. Talk to a few professional sources to get a good picture, you’ll be surprised that some quotes are double others with the same benefits and returns.
Moral of my passage, you must find out what you need and the best value for money for it.
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