Personal Accident: Painful yet Meaningful Experience

Learning can be a painful yet meaningful experience. Growing up as a rebellious adolescent, gave me an opportunity to be a wiser person. I met with an accident not long after I turned 19.  I had just received my motorcycle licence then and was aggressive on the road. The total bills for my motorcycle repairs and hospital bills were enormous! Luckily, my parents were able to assist me financially during that difficult moment.

Years went by after the accident and it was like a dejavu when one of my friends got into a similar situation when a car crashed into his motorcycle. He was shocked and petrified that he could not digest what had happened. I offered my assistance by doing the administrative portion of reporting and claiming against the car while he focused on his recovery.

The two incidents made me realise how important to have an insurance coverage and to have a wise person to assist you during that difficult point of time.

Today, I am that wise person and I call myself a Financial Consultant. The past experience has equipped me with the understanding on how to handle such a situation. Choosing a career as a Financial Consultant enables me to help those in need. In addition, it also allows me to plan for my client financial needs during the different stages of their lives through different tools such as insurance, savings and investments.

Most Singaporeans today do not have a proper financial planning and require assistance to do so. A well prepared financial planning coupled by a wise Financial Consultant will reduce the burden when there is an unforeseen event. A professional Financial Consultant will plan and stay with you for all those special and important events of your live such as your wedding day, the birth of your child and even when you retire!

It’s not how much money you make but how much money you keep, how hard it works for you and how many generations you keep it for. (Quote by Robert Kiyosaki)

8 Important Things Everyone Should Know About Insurance

What are the benefits of getting an investment related insurance? Isn’t it better to get it compared to an ordinary insurance as there may be better returns in the long term?

Firstly, an insurance plan is for the purpose of income protection, not so much for returns. For protection, there are 3 kinds of insurance plans: term, whole life, and investment-linked.

A term plan provides protection only, with no cash value. In terms of cost, it is usually the lowest. A whole life plan and investment-linked plan are protection plans with cash value. The advantage of whole life plans is that it provides a cash value that is guaranteed when bonuses are declared i.e. the money is there when you need it. An investment-linked plan does not have such a guarantee as the cash value is linked to the underlying funds. In other words, in times of financial crises, the cash value may be lower than that of a whole life plan.

The benefit of getting an investment-linked plan therefore should not be about the potential returns. Instead, its advantages lie in the flexibility it provides to the policyholder, for example, flexibility to make withdrawals and top-ups, flexibility to increase or decrease premium payments, flexibility to go on premium holidays and even to change the life insured.

Conversely, a whole life plan is much more rigid. While you can borrow from your policy (called taking a policy loan), you will be charged interest that needs to be paid back one way or another. It is not the same for an investment-linked plan.

In conclusion, these are the three points to remember:

1) Insurance plans is about the protection, not the returns;

2) Whole life plans provide cash values that are guaranteed when declared, investment-linked plans have no guarantees except on claims;

3) The main benefits of Investment-linked plans are the flexibility they have compared to the more rigid whole life plans.

Financial 101

Life turns on a dime. You have no idea when you’ll “need” insurance. That’s why it’s important to plan ahead. This information will help you figure out what types of insurance make sense for you.

Life insurance is a simple answer to a very difficult question: How will my family manage financially when I die?

It’s a subject no one really wants to think about. But if someone depends on you financially, it’s one you cannot avoid. In the event of a tragedy, life insurance proceeds can able to:

  • Pay for funeral costs
  • Pay the bills and meet ongoing living expenses
  • Pay off outstanding debt, including credit cards and the mortgage
  • Continue a family business
  • Finance future needs like your children’s education
  • Protect a spouse’s retirement plans

In this section, you’ll find information and interactive tools to help you to get a sense of how much and what kind of insurance products to buy, plus the information about how different life events — such as having children or buying a home, etc — can affect your insurance needs.

If you’re ready to consider purchasing, there’s advice for finding and working with an agent, and an agent locator search engine is able to help you to find a qualified insurance professional in your area.