Jonathan Chua

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 ...

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...