Jonathan Chua

All You Need to Know Before Buying Your First Plan When you’re young and naive and believe that everything will work out somehow, it’s pretty hard to imagine ever needing to buy insurance. Yet, getting your insurance portfolio in order is probably one of the best things you can do for your finances. And in fact, it’s best to do it while you’re young and healthy. To help you make sense of the world of insurance so you can compare the different insurance plans, we have crafted this comprehensive guide. Consider it your very own Idiot’s Guide to Insurance in Singapore. source

What do you want to do when you retire? It may be a long way off (and a hard question to answer), but it’s important to think about life after you stop earning a regular paycheque. Whether your goal is to travel, learn a new skill, indulge in hobbies or simply maintain your current standard of living, you’ll need to rely on savings to cover the cost of these activities, in addition to your everyday expenses. By doing the groundwork now and learning how much you need to save, you can let your dreams drive your retirement, rather than letting available funds drive your dreams. Here are three things you can do right now to boost your retirement savings, and three tips to help you a few years down the road. 3 things for today: Cut spending Maximize investments to pay less tax Become debt-free 3 things for tomorrow: Consider downsizing Work longer and ease into retirement Prepare for the unexpected source

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Understanding the differences in life insurance choices to find the best price. Yuri_Arcurs/DigitalVision/Getty Image There are various points in life when people decide they need life insurance. Once you've come to that decision, you will usually be presented with several options and plans. Knowing which type of life insurance is best for you can really help save you money and make sure that the decision you make will give you what you are looking for. Do I Need Life Insurance? If you are wondering if you need life insurance, you probably do. Life insurance isn't just for when you get married, are buying your first house, or have children. There are many reasons a person may need life insurance, and some good strategies behind when to get life insurance and what kind of insurance to get. Some situations may call for short term life insurance policies, in other situations whole life policies may make more sense. What Type of Policy Should I Get? Before you decide wha

Globally, the financial services industry leads the world in terms of earnings and equity market capitalization. Large conglomerates dominate this sector but it also includes a diverse range of smaller companies. Commercial banking services form the foundation of the financial services group. The operations of a commercial bank include the safekeeping of deposits, issuance of credit and debit cards, and the lending of money. An investment bank typically only works with deal makers and high-net-worth clients, not the general public. These banks underwrite deals, secure access to capital markets, offer wealth management and tax advice, advise companies on mergers and acquisitions, and facilitate the buying and selling of stocks and bonds. Financial advisers and discount brokerages also occupy this niche. Hedge funds, mutual funds and investment partnerships invest money in the financial markets and collect management fees in the process. These organizations require custody services f

Retirement is one of the key financial goals for many people.  Saving early and often is important.  So is taking advantage of products and accounts designed specifically for retirement. Tax advantages are a key feature of annuities, IRAs and employer sponsored retirement savings plans, such as 401(k), 403(b) and 457(b) plans.  Any earnings growth in these products is generally tax-deferred until you make withdrawals, generally when you are retired and may well be in a lower tax bracket. What's more, your contributions to IRAs and employer retirement plans may be made pretax or may be tax deductible, helping reduce your current tax bill. Annuities An annuity is long-term retirement product that can help protect you against the risk of outliving your assets. It is a contract between you and an insurance company: you receive future income in return for your contributions. Any earnings on contributions are tax-deferred until they are withdrawn, usually at retirement when you

Insurers to combat fraudulent claims A group of insurance professionals is forming a working group to find ways to combat fraud, especially exaggerated and inflated motor claims. The group, which will be formed in the coming months, will be made up of representatives from the General Insurance Association of Singapore (GIA) and its members, and aims to tackle the problem in a structured and systematic way. GIA president Derek Teo said in an interview with The Straits Times that although the industry has made progress in fighting certain aspects of insurance fraud, there are still loopholes to be closed. read more

What is Term Life Insurance? A term life insurance plan is one with a limited coverage period. When purchasing this type of plan, a policyholder typically chooses a set period of time (or term) that they want to be covered for and commits to paying a premium for that period. If you decide to purchase a 10-year term life insurance plan, you will be given the choice to renew your coverage at the end of 10 years, or you can let the coverage end. This is the most basic type of life insurance and is often the preferred option as it is low-cost and easy for most people to understand. The most important thing to remember about this policy is that it has no additional cash value, and will only be paid out upon the policyholder’s death. If the policyholder dies before the end of the term, there is a payout under term life insurance, but if they die after, their beneficiaries get nothing at all. Because of this trait, it is life insurance in its purest form – it only exists to insure peopl

Yields have failed to rise in line with expectations, but bonds remain a crucial asset class for any investor building a yield-generating portfolio. As the chart below shows, the approximate level and direction of change of bond yields over time is related to long-term economic growth rates, which go a long way to explaining why bond yields remain low today. The improved macro trend of the last year or so suggests a bottoming out in the rate of nominal GDP growth and the consequent bottoming of bond yields. However, Chris Iggo, AXA Investment Management’s chief investment officer for global fixed income, warns against expectations of a massive rise in bond yields. ‘The consensus view is that yields are “too” low and that the tendency should be for them to rise, but by how much and driven by what? Sure, short-term considerations about synchronised global growth, the potential for fiscal stimulus in the US, the Fed’s tightening plans and higher headline inflation all point to high

Nielson has recently published a report titled Global Survey of Saving and Investment Strategies aimed at understanding how residents from all over the world view their current and future finance expenses. 35% of Singaporeans are reported to have expressed their pessimism in meeting their future financial goals.  This is higher than the global aggregate of 28%. This pessimism may be alleviated if the goals are clearly defined and managed from as young as possible. With these, we have short-listed the top financial goals that Singaporeans should aim for. Short-term Gain control over every day expenses A wise saying teaches us the importance of mastering the little before being responsible with much. Similarly, the management of one’s own personal finances is crucial. Some of the pointers to look out for include budgeting for one’s day to day expenses to ensure that there are savings. Be debt-free A shift towards a knowledge-based economy would mean a higher proportion of t

Similar to how FinTech reshaped financial services in 2015, it is now InsurTech’s turn to switch up the elements of the insurance industry. Using new technology advancements such as cloud computing, smartphone hardware and apps, InsurTech is set to transform old processes and enable new ways for customers to obtain and remain insured, while allowing insurers to connect digitally with customers. In the past year alone, this growing segment has increased three-fold – from US$800 million in 2014 to more than US$2.6 billion in 2015. The upward trajectory has continued into 2016, during which the first quarter has witnessed more than 45 deals worth over $650 million in funding. The Main Drivers of InsurTech So, what exactly does InsurTech cover? Contrary to popular beliefs (and misconceptions), InsurTech is more than the mere provision of insurance plans through technology. According to Startup Bootcamp, it comprises of up to seven major components: Data Management Peer-to-P

The insurance world is one that is easy to grasp when it comes to its fundamentals, but is riddled with various terms that can confuse many policyholders when it’s time to make a claim. We take a look at the essential tool that is health insurance by explaining the most commonly used terms in this multi-billion dollar industry. Premiums and Claims These have been grouped together as they cover the basic functions of the industry. Premiums are the amount that a policyholder has to pay to an insurance company for the coverage. A claim is when a policyholder submits a request for the insurance company to reimburse them for a payment that falls under the agreed stipulations within their policy. Deductibles While most people usually only look at their plan’s upfront costs (premiums), the policy’s deductible should also be factored into the overall cost of your health plan. The term refers to the amount of money you have to pay every year to cover eligible incidents before your insu