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Showing posts with label Life Insurance. Show all posts
Showing posts with label Life Insurance. Show all posts

Terminating your insurance policy-freelook

Terminating your insurance policy

A life insurance policy sold in Singapore comes with a 14 day free look period. It allows the policyholder to cancel the policy within 14 days and get a full refund of the premium that has been paid.

If this is an ordinary life insurance policy, the premium has to be paid in full. If this is an investment linked policy, the policyholder will have to suffer any loss due to a change in the market value of the units. However, there should be no deduction for agent's commission or other expenses.

If you wish to cancel the policy, you have to notify the insurance company directly. Do not go through the agent, as the agent may not submit this request to the insurance company.

If you have bought a life insurance policy recently, and you are not told about the free look period, you should lodge a complaint to the regulator (MAS) that the insurance company is not complying with this requirement.

If you are not satisfied with the decision of the insurance company, you can also approach FIDREC(Financial Industry Dispute Resolution Centre). The decision by FIDREC will be binding on the insurance company.

If you are not getting a refund according to my understanding, as set out above, you can bring the matter to my attention. I will see if there is any change in practice that is different from my undrestanding.

Online Insurance Quotes Are The Smartest Way to Shop

Online Insurance Quotes Are The Smartest Way to Shop

In today's world there is an increasing demand on our time by work, family and recreation. Because time is such a valued asset, it has become increasingly popular for people to find insurance online. People prefer to shop for insurance online for several reasons. If speed, convenience and affordability are your priorities, then online insurance quotes are the smartest way to shop.

Speed - The process of getting an insurance quote from an agent over the phone is tedious, frustrating and time consuming. Getting more than one quote means you will be calling one insurer after the other answering the same questions or filling out long application forms for a simple quote. This can take you up to half an hour for each quote. The average online insurance quote can be completed in about five minutes. After you fill in a simple form, you can receive your quote immediately and make a decision on the policy. Shopping for online insurance can save you hours of frustration.

Convenience - You can literally buy insurance online 24/7 from the comfort and convenience of your home or office. No more scheduling of appointments with agents or brokers, no more long telephone conversations or being put on hold, you don't even need to leave your home. Everything is at your fingertips and getting insured is just a mouse click away. Many online insurance service providers have teamed up with multiple insurance companies to offer a number of quotes from just one form. This makes it easy to compare and select the best quotes.

Affordable - Online insurance is arguably the most competitive industry in the world because almost every company has their own online quoting system, or at least are linked to other service providers that supply multiple quotes. High competition means that insurance companies lower their rates to remain competitive which leads to savings for the consumer. If you compare traditional quotes to insurance online you will notice the difference in pricing.

Compare - It is often difficult to compare insurance quotes received through traditional means because coverage and features are so varied. By contrast, online insurance quotes, especially from service providers that supply multiple quotes will provide prices for similar or identical coverage, features and deductibles. This consistency allows you to quickly compare and choose the best policy.

PSG Online insurance offers a range of short term and long term insurance products from different insurance companies to suit your insurance needs.

Article Source: http://EzineArticles.com/?expert=Mari_Papg

Effects of deductions Vs Cost of Distribution

Effects of deductions Vs Cost of Distribution

When an insurance agent try to sell you a policy, he/she will have to show you the benefit illustration(BI). Both effect of deductions and cost of distribution figures should and must be found and accurately depicted in the BI.

Most agents do not wish to talk about effects of deductions as it will always paint a very bleak picture about the real cost of the insurance policy. Most agents prefer to illustrate about cost of distribution when questioned by their potential clients.

Cost of distribution covers:
- the total commission paid out for the policy to the agent and his agency for the next 5 years(depending on commission structure)
- the underwriting and administative fees to underwrite and prepare the policy

Effects of deductions covers:
- cost of distribution(as above)
- mortality charges and generally charges for your insurance coverage
- sales charge for ILP funds(for ILP only)
- annual management fees for ILP funds(For ILP only)
- any other fees payable on annual or monthly basis (For ILP only)
- also take into account the opportunity cost of the funds you could have grown if you leave it in an investment with the same growth minus the cost

You should now be able to realise that effect of deductions is an extremely important factor to look at when you are choosing between Investmet Linked Policies(ILP).

Some are against the use of effects of deductions as it also takes into account the opportunity cost of the fees paid and year-on-year appreciation. Some financial consultants are of the views that it makes the figures seems inflated.

My viewof the matter is that what you save on should be included as it will help you accumulate wealth. That is essentially what time value of money is about.

That being said, I would not advise comparing ILP with traditional policies as ILP will look unfairly expensive.
There is extra annual management fees and sales charge from the underlying funds but at the same time, there is much more upside potential in comparision. In deciding between a traditional and an ILP, one should not use effects of deductions or cost of distribution but instead look at the product features.

In short:
- If you are only looking at investment, go into shares directly or Unit Trusts if you do not have much funds.Senseless to go into ILP and let insurers earn the insurance coverage and be serviced by agent who are better in insurance than investment.

However, if I am buying an insurance for my retirement and protection, I would choose an ILP over a traditional plan.
- Flexibility to withdraw from cash value if need to
- If we look at a time frame of 20 years for any period, the stock market will definitely perform better than 3-4% of a traditional policy.

So personally, I would
-use term insurance to cover my protection needs until I am 65 or when my dependents become financially independent
- ILP for disciplined savings and to grow money for my retirement needs more than 20 years later. For the last 5-10 years, I will switch to less aggressive funds and at least 50% in bonds and fixed income.

A final word of caution: Some insurers charge zero sales charge but significantly higher anuual management fees than market to distract and confuse consumers. However if you are looking at effects of deductions, all are taken into consideration and you can compare costs effectively and accurately

How Can You Trust An Insurance Company?

How Can You Trust An Insurance Company?

With insurance costs on the rise, selecting the right income protection insurance or other insurance company right for you can be a little confusing. It is important to remember that insurance companies are like any other and they are selling products and services to make profit. Too many people pay money for years only to find out that their insurance company finds a way to not honour their payment in a time of need. So how do we deal with this issue?


Get over the marketing. Insurance companies have a million and one ways to try and convince us they are reliable and will always be there for you. With names like 'Trust', 'Care', 'Life Long' (disclaimer - these are only examples and do not refer to any particular company) you have to understand that they will use all the possible tools of marketing to get your business. When it comes to paying out your claim they have an entirely different approach. Ignore names, branding, images and the like. Understand that it is all marketing and not making legal promises. What counts is what you pay and what you get - nothing else.
Get real about them not paying. Many insurance companies, including life insurance, home and contents etc, have particular people that are employed not to pay you. This has been exposed a number of times in the media and you need to get real about it. Individuals or organisations that increase their income to find ways to knock back claims. Insurance companies would not make money if they paid out more than they earned. So not paying is something that they must take seriously. They must investigate situation and protect themselves against fraudulent claims, and this will mean many measures inside their company to investigate your claim. Because of the competitive nature of business, you can naturally expect those in the business of investigating claims to be paid incentives when finding legal reasons not to pay - this is just the nature of any modern business today.
Read their claims. Understand when you see a statement made by any company it does not mean they are making a legally binding agreement with you. Many statements are not legally binding agreements and are purely marketing. Don't be fooled by what is what.
Understanding contracts. The reality is that contracts are made up of many definitions and terms. You must refer to the definitions of these terms. The reason why a claim is not paid is often based on the definition of a word used in the contract. Do not take words in a contract to mean what they normally do in plain language.
So, can you trust your insurance company? The short answer is no. It is not a matter of trust or not, it is about understanding that you are entering into a legal agreement which will come under scrutiny at the time of your claim. It is important to note that many of us go straight for our policy and contracts when something happens to see if we are protected and this is exactly the point of this article and the approach we need to take with insurance companies. Know your contract, understand your obligations and rights. A good policy will be clear and concise.

By the way, do you want to learn more about insurance? If so, I suggest you check life insurance and income protection insurance.

Article Source: http://EzineArticles.com/?expert=Jane_J_Miller

What kind of insurance to buy? Do you need it?

What kind of insurance to buy? Do you need it?

Insurance offers protection but how do you know that you have bought the right type of policy?
Illustrated below are five common type of insurance plans and also a few tips to help you decide which suits you best.

1. Death and Total Permanent Disability Insurance(TPD)
- A policy that pays out a large sum when you die or are severely and permanently disabled.

You need it most: If you have dependents for eg. Spouse, children or elderly parents. Such plans are essential if you are the sole breadwinner of your family. The large payout from such a policy will provide for them if something were to happen to yo u.

You need it least : If you are single and have no dependents. You may not have the need to insure for death but the need might come in the future should you be married. You DO need a policy that cover you for disability.

2. Disability Income Insurance
- A policy that compensates you for your loss in come due to illness or injury.

You need it most: If you hold a professional job with a specialisation that gives you high income. Example: Medial doctors, engineers,etc
This type of insurance is one of the most expensive and you should decide based on your income level and the probability that you could lose your income due to illness or injury.

You need it least: If you monthly income is less than $2000 or you have a small monthly budget for insurance premium.

3. Accident Insurance Plan
- A policy that pays out if you are injured in an accident.

You need it most: If you are just starting out on your career,it is a first step towards getting insured. Premium are low and accidents can happen to anyone. Essential for individuals who have dependents and cannot afford other types of insurances. Getting this as a separate policy instead of as a rider on a life policy is usually more economical.

You need it least: If you are already covered by your company accident coverage. You cannot double claim for medical expenses if you have 2 policies but life and disabilities benefits you can. If you leave your company, you would no longer be covered.

4. Hospitialisation plan
-A policy that pays out when you are hospitalised

You need it most: ALL the time. Everyone should have one hospitalisation plan. Rising hospitalisation costs make this one of the most important for one to have. Statistics from Ministry of Health shows that as of 2008, A class wards at government restructured hospitals cost $634-982 per day.

5. Critical Illness Plan
- A policy that pays out when you are down with one of the 30 critical illnesses

You need it most: When you have liabilities such as mortgages, loans or dependents.When you are down with a serious illness and cannot work, you need the payout for your medical cost and to make up for the loss of income. However critical illness plans can be very expensive and are usually attached as riders on life policies.

You need it least: If you have no liabilites, no dependents, no loans,etc
but since you are alone, if you are sick and cannot work, you would still need a sum of money for your living expenses and medicial costs.
Since 2000, direct insurance companies like AsiaDirect and Progressive have started to emerge as a top player in the insurance industry. The insurance industry calls these companies "direct" because they sell directly to you on the internet without an agent who can advise you on what coverage may be right for you, and they also offer only one company product. I read an article about the amount of money these companies spend on advertising, "The October 2010 Consumer Reports stated, those quirky characters in auto insurance TV ads might give you more laughs than actual savings. According to a 2009 survey, only 14 percent of consumers who compared premiums found that they had saved money my switching to these direct carriers".

Here is three main points why a local insurance agent is a must when buying insurance.

1. The first point and probably the most important one is when you buy from a local agent, they are there face to face to help you choose the right coverage. A local agent can gather some information about your assets and chose the proper liability coverage to protect you, your family, and your assets. They can also help you pick out the proper Comprehensive and collision deductible on your vehicles to match your budget and needs. Staying local and having an agent that cares if you are properly insured and getting the best value possible is the only way to go.

2. Claims! Nobody every thinks that they are going to have to file a claim. But if you ever have to, you want a local agent. A claims process can be a long ordeal when dealing with insurance companies. If there is ever a problem, you're going to want a local agent that is there to help. Otherwise, if you bought insurance direct online and did not have an agent, it is you vs. the insurance company. No one is on your side to defend your right.

3. Saves you money! In the long run, going with a good local independent agent will save you money. A general misconception about insurance is that going with a local agent will cost you more, incorrect. Some companies want you to go direct because then they don't pay the agent commissions out of their pocket. For example, Progressive rates are the same if you go through an agent or direct online except for one case. They have started an incentive for consumers to buy direct, where they offer a $50 discount on your first 6 months premium. After that your rate jumps back up level with what an agent can offer you. So, is $50 for 6 months worth not having an agent who will make sure you have the right coverage? I think not, but that is up for you to decide.

As you can see, having a local insurance agent is very important. Insurance companies are making it easier everyday to purchase insurance online and as insurance gets more and more complex you are going to want a local, caring agent who can help protect you.