Showing posts from 2021

The two types of Insurance Nominations you can make and their differences

If you own a life insurance policy with death benefit, you may choose your nominees (or beneficiaries) to inherit the insurance proceeds using one of the two types of nominations. ✏️ π‘π„π•πŽπ‚π€ππ‹π„ ππŽπŒπˆππ€π“πˆπŽπ (𝐒𝐄𝐂. πŸ’πŸ—πŒ) A revocable nomination informs the insurer who to pay the insurance proceeds to, and in what proportion. You may appoint anyone as a nominee, including foreigners or legal entities such as charities, or religious organisations. As the name suggests, it can be "revoked" or terminated anytime that you wish, without permission from nominees. Nominees will only receive the death benefit , while the living benefits belong to the policyowner. Take note that if you make a Will after doing a revocable nomination, it will supersede the instructions in the nomination. ✒️ 𝐓𝐑𝐔𝐒𝐓 ππŽπŒπˆππ€π“πˆπŽπ (𝐒𝐄𝐂. πŸ’πŸ—π‹) A trust nomination serves the same purposes in informing the insurer who to pay to. However, you can only nominate your spouse and/

Levelling Up Your Critical Illness Coverage to Multi-Pay

Did you know that Critical Illness (CI) insurance was invented by a cardiologist?  Dr. Marius Barnard saw his patients fall into financial hardship after the expensive treatments. After years of garnering support from insurers, the first CI policy was launched in 1983, covering 4 illnesses: heart attack, cancer, stroke, and coronary artery surgery. Today, the number has expanded to 37, including conditions such as coma, brain tumour, kidney failure, and others.  In 2008, the first early-stage CI policy was launched and is now a common feature in all CI policies today. Based on our latest claim statistics, about 50% of CI  claims are for clients aged between 46 to 55 , and about 30% for those between 36 to 45 . As you can see, these claimants are relatively young.  The incidence rate of diseases such as heart attack and cancer among the young is on the rise. Even a super fit 29-year old professional footballer can collapse suddenly from cardiac arrest (get well soon Christian Eriksen

Inflation, Is It Good or Bad?

  We are seeing rises in inflation across many major economies. Inflation in the United States hit 5.4% in May, the highest in 13 years. (Source: WSJ) Back home in Singapore, CPI inflation rose 2.1% in April, higher than expected. (Source: ING) Inflation has usually been seen as a bad thing; something that steals money from under our noses, like an invisible thief. However, do you know that inflation can be a good thing too? Just like a gun; inherently, it is neither good nor bad. It all depends on the intention of the user. Law enforcement officers use guns to maintain order. On the other hand, criminals use guns for undesirable activities. Inflation is defined as a general increase in prices. This affects the goods and services that we buy and use on a day-to-day basis. The Consumer Price Index (or 'CPI') tracks a basket of goods and services and compares the changes in price with the previous month/year. If you keep money in the bank, you're probably getting about 0.05%

The Power of Delayed Gratification

  The Marshmallow Experiment In 1972, Stanford University conducted an experiment on children aged 3-4. Each kid was brought to an empty room with a marshmallow on the table in front of them. They were told that they can either have a marshmallow now or if they waited 15 minutes without giving in to the temptation, they can have 2 marshmallows. Some kids were unable to resist their temptation and ate the marshmallow in front of them. A small handful of the kids were able to stay disciplined and managed to wait out the entire 15 minutes. The Stanford researchers continued to track these kids as they grow up (they would be in their 50s today). What is astounding is the kids who practised delayed gratification are more successful in life. They had higher SAT scores, able to cope better with frustration and stress, more academically and socially competent, and generally better in a variety of life measures. A 2011 brain imaging study on the original Standford participants also showed a mor

Inflation is an invisible thief

Inflation is an invisible thief. You may not see it or hear it, but slowly and surely, it is stealing your future from you. Rising prices in everything around us, from a simple plate of chicken rice to your million-dollar condominium, reduces the purchasing power of our money over time. Do you know that at an inflation rate of 2.5%, $100k saved in the bank over 20 years would only be worth about $60k! That is a 40% loss in purchasing power!  On the other hand, $100k invested in the S&P 500 (comprising the top 500 companies in the US) would have grown to $318k during the same period. There's no guarantee that you will make money from investing, but you are guaranteed to lose money by doing nothing! Long gone are the days where our grandparents stashed their hard-earned savings into biscuit tins. Banks came along, and it became commonplace to open a savings deposit account instead as they used to pay a decent interest rate.  Today, whereby interest rates are close to zero, keepin