Insurance & Costs of having and raising a child

[martinlee]

BT today:
Govt-mandated scheme from next year involves cover of up to $400,000

No-commission life insurance up ahead

The result of last review?

It will impose a downward pressure on insurance agent fee.

I think the impact on the bottom line of agent's commissions is limited.

Wrote a more detailed analysis from my earlier article.

http://www.martinlee.sg/future-direct-in...lications/

[CY09]

Read Martin article, the only way to hit agents livelihood is that the govt actively publicize there Is a cheaper option to buy insurance. If no awareness campaign is done, it will end up becoming forgotten

[naro]

Read Martin article, the only way to hit agents livelihood is that the govt actively publicize there Is a cheaper option to buy insurance. If no awareness campaign is done, it will end up becoming forgotten

Agreed. Its all about awareness and marketing.

But the major thing is that the people has to be financially literate and understand what are the financial products that they need. Not too sure whether it is being done here.

I quite like to go to moneysense website, but how many people actually bother to read, understand and apply?
http://www.moneysense.gov.sg/

[NTL]

The problem is most people (80%?) are lazy or too busy. They will not be bothered by all these insurance stuff, much less finding out about it themselves.

That is why agents still can get business standing at MRT stations or outside shopping centres.

[valuebuddies]

The problem is most people (80%?) are lazy or too busy. They will not be bothered by all these insurance stuff, much less finding out about it themselves.

That is why agents still can get business standing at MRT stations or outside shopping centres.

I hope I did not fall into the "too lazy" or "too busy" categories, I don't really read those stuff in the moneysense and I don't bother those agents that trying to sell me products on the street or over the phone. I am confident that I have sound knowledge on financial and retirement planning and that's why I can't digest the advices given by the agents, only when I think I need insurance, I will go look for an agent. I personally don't believe much in insurance probably because I don't have much wealth, and I believe that my wife is capable to raise the kid and pay off the loans without my contribution. Having said this, I do have the very basic kind of insurances, namely the HPS, DPS and Medishield. If you were to ask me to buy an education insurance for my kid, I will tell you go fly kite because I can possibly outperform the returns an insurance company can generate over the same period of time.

[NTL]

The problem is most people (80%?) are lazy or too busy. They will not be bothered by all these insurance stuff, much less finding out about it themselves.

That is why agents still can get business standing at MRT stations or outside shopping centres.

I hope I did not fall into the "too lazy" or "too busy" categories, I don't really read those stuff in the moneysense and I don't bother those agents that trying to sell me products on the street or over the phone. I am confident that I have sound knowledge on financial and retirement planning and that's why I can't digest the advices given by the agents, only when I think I need insurance, I will go look for an agent. I personally don't believe much in insurance probably because I don't have much wealth, and I believe that my wife is capable to raise the kid and pay off the loans without my contribution. Having said this, I do have the very basic kind of insurances, namely the HPS, DPS and Medishield. If you were to ask me to buy an education insurance for my kid, I will tell you go fly kite because I can possibly outperform the returns an insurance company can generate over the same period of time.

I believe none of the members here belongs to the 80%. If they are, they won't be here at first place.

We are here because we want to manage our own finance. We know what we want, and we want to do it ourselves. Well, at least that is what I believe, and that is why I want to be here.

[Bibi]

I personally don't believe much in insurance probably because I don't have much wealth, and I believe that my wife is capable to raise the kid and pay off the loans without my contribution. Having said this, I do have the very basic kind of insurances, namely the HPS, DPS and Medishield.

I thought if a person do not have much wealth he should buy more insurance (protection and medical)? If a person have immense wealth he does not need any insurance at all.

I am capable of supporting my family even without my wife contribution but that does not mean I need only basic insurance because how sure am I that I wont pass away from any dread disease in the next few years?

If I were to depend on only HPS, DPS and Medishield, I think I have to have enough wealth to ensure my dependents (kids and parents) can survive without me and taking into account my wife is not around too.

[valuebuddies]

I personally don't believe much in insurance probably because I don't have much wealth, and I believe that my wife is capable to raise the kid and pay off the loans without my contribution. Having said this, I do have the very basic kind of insurances, namely the HPS, DPS and Medishield.

I thought if a person do not have much wealth he should buy more insurance (protection and medical)? If a person have immense wealth he does not need any insurance at all.

I am capable of supporting my family even without my wife contribution but that does not mean I need only basic insurance because how sure am I that I wont pass away from any dread disease in the next few years?

If I were to depend on only HPS, DPS and Medishield, I think I have to have enough wealth to ensure my dependents (kids and parents) can survive without me and taking into account my wife is not around too.

Well you may be right, but generally poor people tends to skip or buy lesser insurance because they don't afford to spend this kind of money. Only the middle income people contribute more to insurance company, i could be considered in between of poor to average people in terms of wealth, but i would rather prefer to have a poor people mindset so that i could save up more for early retirement. You may think that i am speculating on my health/life, but i actually i see health/life much more important than money, buying insurance doesn't guarantee one from falling sick or losing his/her life, so what for?

[NTL]

I personally don't believe much in insurance probably because I don't have much wealth, and I believe that my wife is capable to raise the kid and pay off the loans without my contribution. Having said this, I do have the very basic kind of insurances, namely the HPS, DPS and Medishield.

I thought if a person do not have much wealth he should buy more insurance (protection and medical)? If a person have immense wealth he does not need any insurance at all.

I am capable of supporting my family even without my wife contribution but that does not mean I need only basic insurance because how sure am I that I wont pass away from any dread disease in the next few years?

If I were to depend on only HPS, DPS and Medishield, I think I have to have enough wealth to ensure my dependents (kids and parents) can survive without me and taking into account my wife is not around too.

Well you may be right, but generally poor people tends to skip or buy lesser insurance because they don't afford to spend this kind of money. Only the middle income people contribute more to insurance company, i could be considered in between of poor to average people in terms of wealth, but i would rather prefer to have a poor people mindset so that i could save up more for early retirement. You may think that i am speculating on my health/life, but i actually i see health/life much more important than money, buying insurance doesn't guarantee one from falling sick or losing his/her life, so what for?

Hahaha. You are right. Insurance doesn't guarantee one from falling sick or losing his/her life. That's why they say (life) insurance is for the surviving party, i.e. the dependents. You buy it, but you cannot enjoy it.

[CY09]

Even though I do not have dependents, I still purchase a term insurance. That is because I want to be covered for TPD. In times when you are TPDed, you become a liability to your family members even if they are earning an income. The sum you receive from TPD will be a relief to your family to cover expenses when you are suffering from tpd; especially for care giving needs, which are not insured under medical insurance.

Something worth considering.