Jonathan Chua

First of all, congrats on your pregnancy and your upcoming bundle of joy. Secondly, I apologize for the unsolicited nature of this message given that we have never met before. I'm a baby and child insurance specialist. I have helped a few expectant mommies with a prenatal plan that protects them against pregnancy complications. It even extends cover to the child and protects against congenital abnormalities. What's more, it covers births conceived though IVF and covers up to twins. It is also a savings plan, which the mother can transfer to her child upon birth, with no medical underwriting, thereby ensuring the child has whole of life cover without any exclusions and savings for his/her education. The mommies have benefitted from this plan as they can enjoy greater peace of mind, knowing that financial assistance is at hand should the unexpected happen during pregnancy or after childbirth. If this plan is something you may be interested in, do drop me a repl...

Picking the best plan need not be a painful or costly exercise with the right approach Insurance is one of those things we all feel we need, yet many people plonk it in the to-do basket and promptly forget about it. And it's not as if it's hard to find a reason to put off dealing with insurance: It's complicated, it looks expensive and the returns can look thin and a long way off. Tackling some of those perceptions is one of the drivers behind a major review of the industry announced by the Monetary Authority of Singapore last month. The Financial Advisory Industry Review will look at key aspects such as educational requirements of financial advisers, corporate governance and how agents and advisers are paid for their services. One of the review's key objectives is to lower costs for consumers so that more Singaporeans can take up insurance. There have been many surveys that show how under-insured Singaporeans are. In AIA study last year found ...

Should You Trust Your Gut? Crime author Patricia Cornwell made major headlines last week when she won a 50 million dollar judgment against a financial manager she claimed mismanaged her money. If you’ve ever used, or are thinking about using a financial planner, you already know just how challenging it can be to select the right money manager. The finance manager you interview may have impressive degrees and four different certification abbreviations behind their name, but let’s get real. Most of us have no idea what they even mean. In the end, the decision to fork your hard earned money over to someone else to manage comes down to trust. How can you know if someone deserves your trust? Well, you should start with conducting basic background research and make sure they haven’t been investigated, imprisoned, or had a 50 million dollar jury verdict against them--but you also have to trust your gut . Businesswoman turned leadership coach, Rebecca Heaslip says people h...

Risk management is the basis of insurance. Fear of the uncertain future creates the need for financial protection against a catastrophe. However, I recently stumbled on an article that provides reasons why some types of insurance are unnecessary. Here are the five unnecessary insurance policies mentioned:   1. Mortgage insurance   Instead of focusing on just paying off the mortgage, holistic coverage should be considered. In addition, most companies provide large sum discounts. There are term plans that mirror the mortgage insurance coverage, providing reducing coverage without needing you to submit mortgage documents and revising everything when you change residence.   2. Comprehensive motor insurance   Most drivers opt for low excess and a comprehensive plan instead of third party plan with higher excess. With the rising cost of motor insurance premiums, it is to your benefit to do some calculation if it is worth paying both an arm and a leg fo...

Singaporeans are getting wealthier and living longer but they are not living healthier. This is one the key findings of a survey released by insurer, AIA SIngapore. From a poll of 1,000 people, it found that Singaporeans are on average four years older than their chronological age due to unhealthy lifestyle choices they make each day. source>> Putting health first: AIA's Vitality programme rewards you for improving your lifestyle AIA Singapore has come up with a new programme called Vitality. The scheme, endorsed by the Health Promotion Board, rewards members who take the time and effort to make themselves healthier. -- PHOTO: AIA VITALITY Get healthy on discount Here’s something everyone should ponder: Is your body older than you really are? A recent survey conducted by life insurance giant AIA found that the average Singaporean’s body age is four years older than their chronological age, due to unhealthy lifestyle ...

Deciding whether you need life insurance can be a complicated process. The decision can be even harder when you are younger. This article highlights some of the issues that you should think about. We hope that this will help you to make an educated decision. Providing for Your Dependents If You Die Let's start with the most obvious reason for why someone should invest in life insurance ... the fact that it can replace your income if you die before your dependents. You may want your children to go to college and your family to enjoy a certain kind of lifestyle. Likely, you still want this to happen even if you die prematurely. But, if you are the primary bread winner for your family, they may not be able to afford it if you die and do not have enough savings to cover their expenses. You can address those concerns by buying enough life insurance. You Have Options You have the option of buying a term life insurance policy , which would cover you for a set n...

Life insurance premiums can be expensive. During times when money is tight and your financial future is uncertain, you can look for ways to save money. Rather than dropping your life insurance altogether, you may be able to do some things to reduce your  life insurance   premiums. Here are a few things you can try to get those life insurance premiums down to a manageable level: Get term, not whole life.  If you have a whole life insurance policy, cash it in and buy term life insurance. Term life insurance doesn’t build cash value the way whole life does, but it’s also a lot cheaper. You can get several times the face value for the same premium price when you switch to term. Reduce your term length.  The length of your term life insurance policy determines, in part, your premiums. Consider getting a shorter term policy, as that can reduce your premiums. Lower your face value.  One of the easiest ways to drop your rates is to lower your coverage. Figure...

Hi there, There are only a few guarantees in life, and paying taxes is one of them. Another is retirement. Everyone will face retirement someday, but have you planned for it? The reality is, most of us have not put enough thought into retirement planning and defer it only until much later in life. All of us have priorities at different stages of our lives, and very often our insurance needs get neglected. But if retirement is a certainty, shouldn’t planning for it then be our top priority? Do you know that if you wish to retire with S$2,000 a month for 20 years, you need to set aside S$480,000, without even taking into consideration inflation? Even then, S$480,000 is a hefty amount to set aside isn’t it? Retirement is the time when you are finally free from most financial obligations, and settle into the life you have always dreamt of. That’s why getting adequately prepared early is so important. So that when the actual day comes, you do not need to worry about whether you ...

7 2% of Singaporeans agree that they cannot afford to get sick these days due to high medical costs*. Healthcare costs are rising faster than the cost of other goods and services + . As the common saying goes, your health is your wealth. It couldn’t be more true. Unexpected medical expenses could represent a significant threat to your finances. If unexpected hospital bills came along and you have no protection, or only partial protection, the impact on your savings might be substantial. Wise financial planning involves both saving for the things you want, and protecting yourself against the unexpected. Isn’t it time to consider a plan that helps you with both? Introducing AIA HealthShield Gold Max, a Medisave–approved medical plan that helps you cope with rising healthcare costs AIA HealthShield Gold Max and AIA HealthShield Gold Max Essential represent the basic components of comprehensive health insurance planning. They offer affordable long-term protection against...

Even with a pension plan, experiencing financial freedom can be challenging in today's economy, what with inflation, increased cost of living and economic downturns. Fortunately, if you start preparing early, old age may not be so bleak after all. Ready for retirement Firstly, have a plan. Consider your health condition, besides the daily expenses you may incur in old age, and certain health matters you may be predisposed to. This requires you to alter your savings and spending habits for a secure and comfortable life in your twilight years. Out With: "I never have to work again". In With: "Retirement means I'll work less, but do more of the things I enjoy". Why: It's proven that part-time work in retirement is beneficial for overall health. It keeps your mind alert, sense of purpose intact and your physical mobility in better condition. Out With: "I'd paid for my home by the time I retire". In With: "I may still have...

Underwriting in the context of insurance refers to the process where insurers assess the risk of an individual applying to take up insurance cover by looking at his medical history and health condition. Unhealthy people will naturally complicate the process, leading to a lot of added paperwork, trouble and complexities. I am not sure whether Singaporeans are really unhealthy, or it is just through self-selection that I encounter many of such people who only look for insurance when they have health problems. Surprisingly, many of such clients are relatively young people who are supposed to be in the pink of health. Difficulties in getting insurance coverage Since I recommend my insurance planning clients to take up beneficial forms of coverage which typically represent less profits and more risk for the insurers, the underwriting process becomes more tedious. Often, a great deal of work is done only for the insurer to decline the case or impose harsh special terms s...

As an insurance salesman for many years, it often puzzles me why people don't buy sensible protection. Why "self-insure" a large risk instead of buying affordable protection? Here is my "Top 10" list of why people don't buy insurance. 1. It is not required. You may be required by a business contract, bank loan or state auto liability requirement to buy insurance. However, in most cases, protection is a choice. No one requires you to buy higher auto liability limits beyond minimum requirements OR to protect your assets beyond the bank lien requirement OR protect your family with Life Insurance. Many people don't believe in buying something that they are not required to buy regardless of the value. 2. Some Don't Believe in Insurance Sometimes a client will only buy the coverage required and then only begrudgingly. They have no belief that the insurance has any value and consider any money spent on it to be a waste. No discussion of t...

As easy as ABC By Lorna Tan, Senior Correspondent, The Sunday Times, 12 June 2012 For most parents, the big-ticket spending item is usually their children’s education once the family’s housing needs have been taken care of. This daunting expense, spread out over the school-going years, includes tuition classes and finally, the king hit: tertiary education. The figure balloons if the child pursues his studies overseas, partly due to unsubsidised varsity tuition fees and higher living expenses. OCBC Bank estimates the cost of a four-year, non-medical degree in a local university today for a Singaporean to be $105,800, including tuition and living expenses. Source>>

Many of my clients often compare buying life insurance to gambling. Their rationale is that by paying premiums to cover an insured event, we are betting against the insurance company, as insurance is an expense and one effectively loses the “bet” if the insured event such as death, disability or critical illness does not befall us. It feels similar to placing a bet on a table game in a casino and hoping for a favorable outcome. So is insurance truly like gambling? Let us tackle this question from a risk management perspective. We understand that when it comes to risk financing, there are two options: 1) Risk Acceptance (Not buying Insurance) 2) Risk Transfer (Buying Insurance) Let’s explore the 2 options in detail. Figure 1 – Possible outcomes from being uninsured/under insured Financially, there are 3 possible scenarios that can happen to an individual who chooses not to buy life insurance and accepts any risks along the way. The optimal scenario ...

Insurance should cover every person who seeks coverage, whether or not they suffer from pre-existing medical conditions, chronic diseases or congenital health conditions, said Singapore’s ambassador-at-large Tommy Koh . Speaking on Thursday at an Institute of Policy Studies (IPS) roundtable on Singapore’s population trends, Koh, who is also special adviser to the IPS, said the government should step in to ensure that insurance coverage is fair and accessible for all. He identified insurance as one area where Singapore “didn’t get it right”, touching also on the nation-state’s failure to achieve inclusive growth — more specifically in terms of plugging the income gap. “We need to fix the equity of our existing healthcare system. We have a system at the moment that does not meet my standard of fairness,” he said. “I think the state should intervene and require all insurance companies to insure people with prior medical conditions. There should be no one in S...