Jonathan Chua

Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim. Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. It covers you for repairs and replacement of any damage that’s covered in your policy. It provides protection against theft, damage from perils like fire and water, and financial responsibility that could result from a visitor or guest being accidentally injured on your property. Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage. Auto insurance is also a legal requirement. Maintain your current standard of living if you become disabled or have a critical illness. It covers your day-to-day costs and larger expenses li...

Limited resources, unlimited needs All of us have plenty of financial needs. Insurance for protection, investments for our retirement & kid’s education, paying our mortgages, car loans and so on. But our resources are limited. If you are a male aged 35 and need to provide your family with a monthly income of $3,000 for 20 years in the event of your unfortunate demise, you will need about 600,000 cover. If you intend to retire at age 55, Table 1 shows the comparison for the various types of plans. The truth is, how many can afford paying more than $6,000 or $10,000 per year, just to cover his individual death needs? In the above example, we haven’t even considered his medical, his spouse, and his children insurance needs yet. We can discuss all the merits of whole life with cash values and so on, but if we cannot even fully cover our needs,  what’s the point? TABLE 1: Types of insurance plans *This is a packaged plan by one of the insurers. About temporary and perman...

When you think about life insurance policies do you think about the peace of mind you get knowing that you’d be protected for life? Or, do you recall that one time when a friend-turned-financial-advisor sold you an expensive plan called an investment-linked policy? Investment linked policies (ILP) are one of the most complex forms of insurance. Let’s see if you should buy one. source

Insurance and gambling were considered alike because there is an uncertainty of events and payment is made when the event occurs. Like gambling, the insured is unaware of the time and amount of loss. If the event occurs, the insured like the gambler gains; otherwise, they are experiencing the loss. But there are certain differences between the insurance contract and gambling. source

How Do You Decide Which to Choose? All Singaporeans are covered by MediShield Life for the most basic of medical coverage. But on top of MediShield Life, an estimated two-thirds of Singaporeans are also paying for an integrated shield plan (IP) from one of 7 private insurers: AIA Healthshield Gold Max Aviva MyShield AXA Shield Great Eastern Supreme Health NTUC IncomeShield Prudential PruShield Raffles Shield Each insurer offers a few options for their integrated shield plans, which means Singaporeans looking for an IP will have over 25 options to choose from. That sounds daunting, but making your decision is actually easier than it seems. You only need to have a faint idea of what level of coverage you want, and the rest of it is mainly just crunching numbers. Easier than deciding which bubble tea you want at Gong Cha. Ready to compare the heck out of Integrated Shield plans? Let’s go. source