Sunday, September 11, 2016

Insurance Review

Been busy recently trying to renovate my house.... costs of renovation is definitely way different from what i remember when i did up my house 8-9 years ago! My curtains and lights are double of what i spent previously. Although regrettably my record keeping the last time has been far from ideal, so wasn't able to do up a very comparison.

Any how.... due to the taking on of additional liabilities (and with getting older), decided to do an insurance review. I guess with age, one feels more afraid, with more things to lose... hence unwilling to take on risks which I can pass off to others.

Hospitalization and Surgical:
With the launch of AXA shield plans, i think it is currently one of the best shield plans around, with the highest annual policy limit (1 million per year), and longest pre and post hospitalization benefits. Meaning, one can claim for certain hospitalization visits after 365 days from discharge. I am currently with Aviva, and may be switching to AXA while i am healthy and still able to switch.

Critical illness:
I have Great Eastern's critical illness plan at the moment, but was quoted a similar one for AIA but at close to $1k cheaper per annum. The differences are, to me marketing tactics by GE to charge a premium.
 - For example, a shorter survival period of 7 days compared to 30 days. If one were to come down with a CI and passes away within 7 days... the CI will not pay out, true.

However, the purpose of CI is to help defray the costs of medication/differences in lifestyle after being diagnosed. If one were to die within 7 days, then the purpose of CI payout will not be required. The death benefit from my term life would pay out. The argument is that the premiums paid for CI policy would be 'wasted'. However, that's the purpose of buying insurance - i always treat it as an expense. People don't like to see wastage, and hence the sales of 'life policies' where you get what you paid for your premiums back is always higher. People fail to realize that a life policy is just a bundle of 'wastages + lending the insurance co to invest for you and return it back to you at a low rate of return'.

Death Benefit/TPD:
Increased it quite significantly, given the taking on of additional liabilities. IF something happens to me, i would not want my family to be saddled with a huge mortgage. The term life policy comes with TPD, so I am covered for that as well.

I got this instead of a reducing balance policy as i think the difference in price is not that material, and if i have additional obligations in the future, i would need to top up my coverage next time anyway.

Disability Income:
I added this as this is part of the holistic insurance package review. I feel that we should look at insurance needs as part of a holistic strategy... and this was how i viewed it. If i fall sick and needs to be warded, my H&S would kick in and pay for the bills. But if i cannot work due to the sickness, this disability income will kick in and pay for my monthly expenses (and mortgage).
If it is due to CI, i will be able to use the CI lump sum to pay for whatever bills that the H&S do not cover. This might include new drugs under approval which could prove effective, but not approved by H&S as yet.

I think i'm almost done, except for a personal accident plan.


  1. i am also using GE, and i find it more costly than others. it is just a simple 300k term plan + early CI + PA + DI. (~$2.5k)

    one thing i learnt though, is dont use GIRO for the premiums.
    if u decide to cancel to move to another player, it takes forever for them to process it.

    1. Hi - yea, I am not using GIRO, but paying for the premiums with the GE Cashflow card for the 1% rebate. Just curious, could you not terminate the GIRO arrangement using internet banking? I cancel my GIRO arrangements all the time for my Credit card bills. Seems pretty easy?

  2. thats a good idea. i never though of using ibanking, will try it later. but i dont recall seeing a " cancel GIRO"option on the dbs platform.. will explore anyhow

    (it has been almost 10days since i called GE to cancel, and i still havent heard from GE)

    btw, whats this GE cashflow card? is it a credit card?

  3. There you go:

    If you are using DBS/POSB for GIRO, you can go to 'Pay' -> 'More payment services' -> 'View GIRO Arrangements' -> 'Delete Giro arrangement'.

    All the banks i use with internet banking has the option to delete GIRO. Check it out! :)

    1. wow! i just cancelled all four of the giro GE payment!
      thanks Dowz! saved me from pulling out more hair!
      time to bring my money to other players..

      just curious, did u try DIYinsurance? their premiums for term seems afforable. but up to 300k, irrc

    2. No problem! happy to help where i can. That's the purpose of setting up the blog, to share and to learn from others! :)

      I did try DIYinsurance, but i was looking for more coverage.. so as you mentioned, the limit is 300k, so I can't get enough with DIY (unless i combined a few - which wasn't that much cheaper in the end)

  4. btw, both AXA and Aviva shield excludes coverage due to terrorist attack. You may want to explore other insurer that cover that.

    1. thanks for sharing Siak Lim - what insurers cover hospital bills due to terrorist attack?, and would you view having this benefit (covering terrorist attacks) as more important over higher annual limit (and longer pre-post period)

  5. As far as I know, NTUC and AIA shield plan does not exclude terrorism. As for which is more important, I think it's for you to decide. Everyone's opinion is different. If you suay suay kena terrorist attack and your plan don't cover, then you will find it's very important. Else the longer post hospitalisation will be more important. I guess years ago, no one is too concern about terrorism, until last year...