Jonathan Chua

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...

It seems that the recent speech by the Managing Director of MAS has triggered a strong response from the industry. I guess it is because he mentioned points that will have a significant impact to the industry like raising the entry criteria from the current 4 'O' levels to keep up with current education trends and removing commission based sales to fee based structure. Some opinions I heard include: - "Oh no, it is going to mean more exams and paperwork." - "It simply will not work! Customers will not pay a fee. They have been so used to receiving free advice." In my opinion, raising the entry criteria is only keeping up with the current education standards. Most of the population is at least a diploma holder. At least, it will make the industry seem a little more professional as this point is often poked fun at with comments like "If you only have 4 O levels and cannot find a job, just go and be an insurance or property agent."....