Dear Mr. Tan,
Is it possible to buy term insurance with critical illness coverage for my newborn baby? Or must I sign up for a whole life policy to have critical illness coverage?
I am looking to cover him up to age 65. I will also be getting for him Enhanced Incomeshield (Preferred) Plan. I feel that critical illness coverage is essential even with a Shield Plan as the Shield Plan only covers hospitalisation and surgical expenses but not living expenses, which could place a heavy burden on an affected person's family if the affected person is unable to find permanent employment for an extended time. Please advise.
REPLY
My view is that it is not necessary to buy Term insurance or critical illness coverage for a baby or a child.
If you feel that this is necessary, you should be able to find an insurance agent to sell the coverage for you. The agent is likely to convince you to buy a whole life policy.
Read this FAQ:
http://www.tankinlian.com/faq/choice.html
Wednesday, February 20, 2008
Need a bank loan for a retail business
Hello Mr Tan
I am running a retail business in a shopping centre? In recent months, I am facing some financial issue to running the retail operation. I tried to ask the bank for a SME loan of $X. The bank rejected my application as I am low in funds with the bank. I am confused by the rejection, as I needed the loan because I am low in funds. Why is it that nobody can help? I am willing to pay interest to the bank but they refuse me. Please advise me what to do.
REPLY
This problem is outside of my expertise. I do not know how I can help. Perhaps, if the business is doing poorly, it is better to close it down, before it incurs further losses.
If the business has the prospect of being profitable, you should be able to interest investors or to convince the bank to provide a loan.
I am running a retail business in a shopping centre? In recent months, I am facing some financial issue to running the retail operation. I tried to ask the bank for a SME loan of $X. The bank rejected my application as I am low in funds with the bank. I am confused by the rejection, as I needed the loan because I am low in funds. Why is it that nobody can help? I am willing to pay interest to the bank but they refuse me. Please advise me what to do.
REPLY
This problem is outside of my expertise. I do not know how I can help. Perhaps, if the business is doing poorly, it is better to close it down, before it incurs further losses.
If the business has the prospect of being profitable, you should be able to interest investors or to convince the bank to provide a loan.
Achiever Policy
Dear Mr. Tan
Presently I am paying $x a month premium for a coverage of $Y. I am thinking of terminating the policy but there is a penalty if i cash out now. What is your advice on this? Do I wait till the 6th year whereby there will be no penalty to terminate the policy?
REPLY
You can ask the insurance company to tell you the following:
a. what is the cash value of the policy now?
b. what is the amount of penalty on terminating the policy now?
c. what is the total premiums paid up to now?
d. what is the future premiums payable in the future, until the end of the 5th year?
e. what are the charges deducted from the premium payable until the end of the 5th year?
f. what is the expected cash value at the end of the 5th year, assuming that the investments earn a gross return of 5% per annum
With the above information, it may be easier for you to make a proper decision.
Lesson: Get the relevant figures to make the correct the correct decision.
Presently I am paying $x a month premium for a coverage of $Y. I am thinking of terminating the policy but there is a penalty if i cash out now. What is your advice on this? Do I wait till the 6th year whereby there will be no penalty to terminate the policy?
REPLY
You can ask the insurance company to tell you the following:
a. what is the cash value of the policy now?
b. what is the amount of penalty on terminating the policy now?
c. what is the total premiums paid up to now?
d. what is the future premiums payable in the future, until the end of the 5th year?
e. what are the charges deducted from the premium payable until the end of the 5th year?
f. what is the expected cash value at the end of the 5th year, assuming that the investments earn a gross return of 5% per annum
With the above information, it may be easier for you to make a proper decision.
Lesson: Get the relevant figures to make the correct the correct decision.
Dear Mr. Tan,
I find your blog very interesting. I to seek your advice. Presently my income is mainly in USD which has been sliding downwards. Should I convert to Singapore dollars. What is your best course of action to prevent further exchange losses?
REPLY
It is difficult to predict the movement of currencies. If your cost of living is mainly in SGD, perhaps you should discuss with your employer to pay you in SGD, or to have some way of adjusting for the cost of living in Singapore?
Regarding your investment in USD, you can see if this FAQ is helpful to you?
http://www.tankinlian.com/faq/foreign.html
I find your blog very interesting. I to seek your advice. Presently my income is mainly in USD which has been sliding downwards. Should I convert to Singapore dollars. What is your best course of action to prevent further exchange losses?
REPLY
It is difficult to predict the movement of currencies. If your cost of living is mainly in SGD, perhaps you should discuss with your employer to pay you in SGD, or to have some way of adjusting for the cost of living in Singapore?
Regarding your investment in USD, you can see if this FAQ is helpful to you?
http://www.tankinlian.com/faq/foreign.html
Mr. Tan,
I was about to sign up a long term saving plan & ILP with an insurance company when I saw your article in Mypaper. I read your blog and found it to be really helpful. The concept of 'buy Term & invest the rest' is really impressive and make a lot of senses.
I have always been told by insurance agents to spend 15 - 20% of income for insurance. I plan to stop some of my insurance plans and change it to Term. Can you recommend a good insurance agent?
I come across many agents who always ask me to buy life & ILP. Is NTUC income different from them ?
REPLY
I believe that most agents, including those from NTUC, will try to sell ILP and life products, as they earn higher commisison.
I suggest that you visit the business center of NTUC Income and talk to the salaried consultants. I hope that they will be different, as they are not paid a commission on the sale.
I was about to sign up a long term saving plan & ILP with an insurance company when I saw your article in Mypaper. I read your blog and found it to be really helpful. The concept of 'buy Term & invest the rest' is really impressive and make a lot of senses.
I have always been told by insurance agents to spend 15 - 20% of income for insurance. I plan to stop some of my insurance plans and change it to Term. Can you recommend a good insurance agent?
I come across many agents who always ask me to buy life & ILP. Is NTUC income different from them ?
REPLY
I believe that most agents, including those from NTUC, will try to sell ILP and life products, as they earn higher commisison.
I suggest that you visit the business center of NTUC Income and talk to the salaried consultants. I hope that they will be different, as they are not paid a commission on the sale.
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