Tuesday, October 14, 2008

Optimising and Updating Your Insurance

What should one do during this global financial crisis when stocks are down and the market is just so moody? Well, one good thing to do will be to re-look into your insurance policies and find out whether you have them optimised or updated.

What do I mean by optimised? It means to find out whether you can find a plan that is cheaper than any existing plan you have so that you can replace your current plans. Updated means to take into account the recent developments in your life (new addition to the family, etc) and see whether you are sufficiently covered.

Below is a list of my insurance policies and the premiums that I am paying for them. Feel free to compare and do let me know if you have a cheaper insurance plan than me =). Of course, those with the higher premiums provide money back and those that are dirt cheap are the term insurance which are basically pay and throw away kind of plans.

Death and TPD

1. AIA Achiever ($100,000) - $350 per month (Investment Linked)
2. Asia Life Junior Life Care Policy ($160,000) - $150 per month (Surrender Value present)
3. Aviva SAF Group Term Insurance ($100,000) - $12.80 per month (Pay & Throw Away)

Critical Illness

1. Aviva SAF Group Insurance Living Care Policy ($100,000) - $10 per month (Pay & Throw Away)

Personal Accident

1. Aviva SAF Group Insurance Personal Accident Policy ($100,000) - $4.17 per month (Pay & Throw Away)

Hospitalisation (without rider, means must pay deductible and co-insurance)

1. AIA Healthshield - $111.30 per month

Disability Income

1. Nil

Home Insurance

1. AIG Home Assurance

The coverage details are as follows:
Coverage Descriptions Limit (SGD)
Building = $150,000
Alt Accomodation Expenses = $4,500
Household contents = $30,000
Contents at Temporary Premises =$4,500
Replacement of Locks & Keys = $250
Personal Accident (<66 age="" br="">Medical Expense (<66 age="" br="">Third Party Personal Liability = $500,000

2. Home Protection Scheme (HPS) by HDB

Pays off housing loan that is owed shd anyone pass away.

1 comment:

  1. Hi,

    though I do not know your personal financial situation, I would like to offer my thoughts, on your existing insurance coverage:

    1) Your Term Cover is excellent, as it takes care of your protection needs, at a minimal cost.

    2) However, for your Critical Illness Group Term Cover, a suggestion would be to supplement it, with some Critical Illness Whole Life Cover. Reason being that your existing Critical Illness Group Term Cover has an expiry date (For NTUC-SAFRA Group Critical Illess Plan, there is also an expiry date), and thus when you are at the age when you need it the most, it is no longer there.
    On top of that, you have to survive 30 days of the Critical Illness, before you can make a claim. As I only saw the terms of their plan from their online brochure, I would assume that this AVIVA-SAF Critical Illness Group Term does not have Death cover attached. (For NTUC-SAFRA's Critial Illness Group Plan, other than CI Cover, Death & TPD is also included).

    3) Is there a typo in the monthly premium of your Hospitalisation Plan? If it is a Shield Plan, I believe the premiums are much, much cheaper, based on your age - even if you were to include the Rider that helps pay for your Co-Insurance and Deductible - Unless your monthly premium stated is actually for your whole family's hospitalisation cover.


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