I got curious about the different credit ratings across Singapore's life insurer and started to compile the data. Here is the result of my curiosity.
Standard and Poors (S&P) is one of the top three credit rating agencies in the world (alongside Fitch and Moody's) and their opinion is highly regarded in the financial and economic world. The ratings are a reflection of S&P's opinion on how likely a company is able to meet its financial obligations. In the context of insurance companies, that means the policy payouts and cash values.
In the case of the latest entrant in the market (FWD Singapore), it's apparent that their credit rating is way lower than the other more established brands. (Note that FWD's rating is by Fitch, which runs on an equivalent scale to S&am…
As I approach my tenth year in the life insurance and financial advisory business, it has come to a point in my career where I am embarking on a new challenge, that is to groom and train young people into successful financial consultants. As such, I have been away from writing articles for a while, busy juggling both client consulting and mentoring responsibilities.
All newly minted financial consultants have to undergo intensive product training, mastering one product at a time, until they reach a level of proficiency and experience where they can flap their wings and fly on their own. While I was training the new blood of our industry, it is inevitable that that the new consultants ask which products do our clients like the most.
Although financial planning is a highly customised affair, and no two persons' financial needs are exactly the same, some products are indeed in higher demand than the rest. This may be due to a greater awareness for certain types of policies. And durin…
Today a business friend asked me if there is any way to insure her parents, who are in their late 70s, against medical costs.
I told her that unfortunately the policies at my disposal have a maximum entry age of 75, and therefore I’m not able to provide cover for them. However I advised her on a viable alternative, that is “self-insurance”.
I asked if she has any other siblings and she replied yes. I then went on to suggest that from now on, she and her siblings should start contributing some money into a medical fund for their parents, and this pool of money becomes an “insurance fund” for them. Coupled with Medishield Life as well as their Medisave funds, this approach should help to alleviate most of the medical costs.
Suddenly I can see an imaginary light bulb lit up in her mind — an “a-ha” moment! She said that if each sibling contribute $200 monthly, it seems like this is a do-able strategy.
Financial planning isn’t always about buying more insurance policies. Sometimes, seemin…