Insurance & Costs of having and raising a child

[Bibi]

If you decide not to continue with purchasing the insurance policy recommended by your financial planner,
you can inform the insurance company to stop the policy and get your refund within the free-look period.

Err, is the refund 100% or must pay some adminstrative fees? I know if one went for medical checkup and decided to terminate during free look period, one has to pay for the medical fees.

[NTL]

If you decide not to continue with purchasing the insurance policy recommended by your financial planner,
you can inform the insurance company to stop the policy and get your refund within the free-look period.

Err, is the refund 100% or must pay some adminstrative fees? I know if one went for medical checkup and decided to terminate during free look period, one has to pay for the medical fees.

From what I know, if there are no cost involved upfront, eg. Medical checkup, the refund is 100% for most of the plans except for ILP. As far as I understand it, the explanation is that for ILP, the money is already invested, thus can only take back based on the current price of the units invested. Can't remember at bid or offer.

[a74henry]

If you decide not to continue with purchasing the insurance policy recommended by your financial planner,
you can inform the insurance company to stop the policy and get your refund within the free-look period.

Err, is the refund 100% or must pay some adminstrative fees? I know if one went for medical checkup and decided to terminate during free look period, one has to pay for the medical fees.

From what I know, if there are no cost involved upfront, eg. Medical checkup, the refund is 100% for most of the plans except for ILP. As far as I understand it, the explanation is that for ILP, the money is already invested, thus can only take back based on the current price of the units invested. Can't remember at bid or offer.

Based on my experience. When the units are sold in a ILP, it is a price that is determined at the end of the day when the price is computed by the insurance company.

[Traumfanger]

Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?

I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

[NTL]

2

Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?

I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

There are hidden costs in ILPs:
1. Mortality charges that rises with age
2. Annual admin fee
3. High sales charge (5% between offer-bid price)
4. Commission and initial cost which eats into the initial years of investments.

Alternatives will be:
1. Buying directly into ETFs listed in the stock exchange
2. Use Philips Securities Stock Builder Program (think that the name) to buy regularly
3. Buy funds directly from Dollardex, Fundsupermart or Philips Securities
4. Buy funds from Navigator, iFast or Philips through Financial Advisors
5. Buy funds from banks

Any of these will be a better choice. Your friend-to-be is either very green or very dishonest.

[yeokiwi]

Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?
I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

Of course if you do not want to learn to cook, the alternatives are cooked food from hawkers, restaurants and instant food.

ILP is liked instant food, full of preservatives(commissions) and relatively unhealthy due to its low nutrition(low return).

Hawker food is liked unit trusts. You can go from stall to stall to look for food that is healthy and preferably, with less preservatives and toxins from their raw ingredients. Some get it right and get good and healthy foods(good returns). But, some always choose the fried, oily and salty food and their health is affected(negative return)

For those who are richer, they can go restaurants(private banking) and typically, the restaurants' foods have a higher standard of hygiene and likely to be more nutritious. But, the restaurants required the customers to pay a higher price(high barrier of entry, HNWI??) before they serve them. However, occasionally, we also heard that some restaurants serve unclean food and cause food poisoning.(Lehman brothers?)

If you cook yourself, you can always choose food ingredients without preservative and high in nutrition. So normally, for family that self cooked, it is more than likely that the family health will be much better.(financial health??)
But, even for those who self-cook, there are those who still prefer fried, oily and salty food(S-chips, derivatives, contra, leveraging??) at home.

[Traumfanger]

[HIDE]2

Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?

I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

There are hidden costs in ILPs:
1. Mortality charges that rises with age
2. Annual admin fee
3. High sales charge (5% between offer-bid price)
4. Commission and initial cost which eats into the initial years of investments.

Alternatives will be:
1. Buying directly into ETFs listed in the stock exchange
2. Use Philips Securities Stock Builder Program (think that the name) to buy regularly
3. Buy funds directly from Dollardex, Fundsupermart or Philips Securities
4. Buy funds from Navigator, iFast or Philips through Financial Advisors
5. Buy funds from banks

Any of these will be a better choice. Your friend-to-be is either very green or very dishonest.

[/HIDE]

Thanls, but if a person dont want to spend time learning how to invest, I dont think what you offered is a feasible alternative.

[HIDE]

Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?
I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

Of course if you do not want to learn to cook, the alternatives are cooked food from hawkers, restaurants and instant food.

ILP is liked instant food, full of preservatives(commissions) and relatively unhealthy due to its low nutrition(low return).

Hawker food is liked unit trusts. You can go from stall to stall to look for food that is healthy and preferably, with less preservatives and toxins from their raw ingredients. Some get it right and get good and healthy foods(good returns). But, some always choose the fried, oily and salty food and their health is affected(negative return)

For those who are richer, they can go restaurants(private banking) and typically, the restaurants' foods have a higher standard of hygiene and likely to be more nutritious. But, the restaurants required the customers to pay a higher price(high barrier of entry, HNWI??) before they serve them. However, occasionally, we also heard that some restaurants serve unclean food and cause food poisoning.(Lehman brothers?)

If you cook yourself, you can always choose food ingredients without preservative and high in nutrition. So normally, for family that self cooked, it is more than likely that the family health will be much better.(financial health??)
But, even for those who self-cook, there are those who still prefer fried, oily and salty food(S-chips, derivatives, contra, leveraging??) at home.

[/HIDE]

So seems like for those lazy to cook, will have to get food cooked by others.. Thanks, rep'd you

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Seems like the forum doesnt use [hide][/hide] code

[Muck]

Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?

I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

I personally think such a person has two alternatives that will prob do better than ILPs in the long run:
- Buy an ETF linked to a broad market index; or
- Don't do anything.

Honestly though, if one really cannot be bothered, then the latter should be the best option. "If you don't know what you're doing, then don't do anything."

[Temperament]

Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?

I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

I personally think such a person has two alternatives that will prob do better than ILPs in the long run:
- Buy an ETF linked to a broad market index; or
- Don't do anything.

Honestly though, if one really cannot be bothered, then the latter should be the best option. "If you don't know what you're doing, then don't do anything."

"If you don't know what you're doing, then don't do anything."

My brother-in-law, a "Jolly Good Fellow" who can get along with any one, can fall asleep anywhere, anytime, really don't know much about investing. So throughout his life journey, many "investment people" make him lose money. But until he meet one (its a lady) who made more than $100K for him. Not only that, when his insurance coverage for critical illness expired at age of 55 or 60 (i think), she asked him to buy another. Remember, he being a "Jolly Good Fellow" just agreed though it is really "expensive" for us. But luckily he is not like us (calculate & calculate); he is diagnosed with 4th stage colon cancer recently.
So with insurance, he doesn't have to cue like most of us to see doctor and chemotherapy treatment. His insurance pays everything and he got a "lum sum payment" from his insurance too. He is responding well to the chemotherapy treatment. Amen.

Like most of us who use "subsidised hospital facilities", the waiting times in the cue to see the doctor will allow the cancer to grow to kill us already.
And he really is "If you don't know what you're doing, then don't do anything."

Of course i think critical illness insurance is expensive too because i calculate & calculate too. How about you?

[Traumfanger]

And another point my friend brought up, I find it hard to argue? He mentioned that ILP has at least a guarantee for the principal sum paid. While investment doesn't have that. Then I told him, investment in a company, a company rarely suddenly collapsed. You sell when your faith of the company is no longer there. And don't forget throughout the years, the dividend you collected are also money. And for ILP, the breakeven for average is about 10 years. For personal investment, if you are doing it well, you start earning from the first year!

Then he said, this person has no time to identify when the company fundamentals are shaken, and when to sell or buy. After work just want to do his own thing don't want to spend time in finance related stuff. Because he don't know anything about it... Which brings back to square one. If the person really can't be bothered till that kind. I think he should just have that "instant noodle"

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Actually.. For those who really can't be bothered to learn investing, is ILP the right choice? Any other alternatives for them?

I can't ans that question when my insurance-agent-to-be friend ask me that. It makes it seem like ILP is the alternative for that group of people.

I personally think such a person has two alternatives that will prob do better than ILPs in the long run:
- Buy an ETF linked to a broad market index; or
- Don't do anything.

Honestly though, if one really cannot be bothered, then the latter should be the best option. "If you don't know what you're doing, then don't do anything."

"If you don't know what you're doing, then don't do anything."

My brother-in-law, a "Jolly Good Fellow" who can get along with any one, can fall asleep anywhere, anytime, really don't know much about investing. So throughout his life journey, many "investment people" make him lose money. But until he meet one (its a lady) who made more than $100K for him. Not only that, when his insurance coverage for critical illness expired at age of 55 or 60 (i think), she asked him to buy another. Remember, he being a "Jolly Good Fellow" just agreed though it is really "expensive" for us. But luckily he is not like us (calculate & calculate); he is diagnosed with 4th stage colon cancer recently.
So with insurance, he doesn't have to cue like most of us to see doctor and chemotherapy treatment. His insurance pays everything and he got a "lum sum payment" from his insurance too. He is responding well to the chemotherapy treatment. Amen.

Like most of us who use "subsidised hospital facilities", the waiting times in the cue to see the doctor will allow the cancer to grow to kill us already.
And he really is "If you don't know what you're doing, then don't do anything."

Of course i think critical illness insurance is expensive too because i calculate & calculate too. How about you?

I think at the end of it.. If those investment "friends" helped him to earn money, eventually when the other insurance expired, he has a pool of cash he accumulated through the help of his "friends". That's some what, what BTIR is about.