Jonathan Chua

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 ...