Travel Insurance Promotion, Re-financing mortgage and DPI

As Good Friday is shortly approaching this Fri, I wish you all a Happy Easter break!While you kick back and relax, perhaps you are reflecting on the last quarter like I did. For me, time really flies… are we on track to achieve our top 3 goals this year? How about you?Here’s a summary of this week’s recent hot topics on personal finance:
a. Re-financing mortgage is getting tougher for those with floating or variable mortgage loans. If you’ve been sitting on it, then chances are you’d missed the lower fixed rates that were available in the last 2 months. Now most banks are offering their fixed rate packages at an average of 2% p.a.Why pay more interest to the bank?
Please act today and secure a good fixed rate today.

b. compareFIRST web portal and the Direct Purchase Insurance (DPI) are available online today.  It’s a good tool for reference for clients to compare term plans and certain whole life insurance plans.From 7 April 2015 onwards, you can buy term plans and certain whole life insurance plans directly with the insurance firms but you still need to meet a customer service officer assigned to you by the insurance firms.i.e. You get NO ADVICE on your purchase. Till date, both NTUC Income and Zurich insurance have confirmed this.
So if you wish to obtain financial advice at the insurance firm after you purchased it online, you may approach any of the insurer’s sales representatives at their customer service centre who are authorized to provide financial advice.
BUT you may be charged a fee or commission for the advice provided.

Similarly if you approach me with such a DPI purchase to check that it’s a right buy for you, I’m afraid I have to charge you an hourly advisory fee for this as the industry practice.

And chances are by the time you come to me to check on this, it could be over the free look period of 14 days and you could penalize yourself financially.
Your loved ones and your older self depend on you to make the right decisions to smooth this journey of life.
You want a trusted friend and adviser to help you make better informed decisions.
Anyway the advantages of this portal:

  1. As consumers, you can access information but information is nothing if you do not know how to apply it in the right way.
  2. You may have a better understanding of term plans and some whole life insurance plans
  3. Cheaper premiums potentially

but consider this, weigh the disadvantages of such insurance purchase WITHOUT financial advice:

  • How do you know if the insurance plan is the right solution to suit your need?
  • Realize that the premium is regular pay, i.e. you pay premiums all the way from now until age 65, 75 or until age 85, depending on the structure of the term plan or whole life insurance plan.                  Does it  make financial sense to service the premiums all your life when there are so many factors at play such as health and job security?
  • If you get such a plan for your child, your child will have to pay and pay premiums all his life or her life. Can you imagine that?
  • Cheaper premiums means you get cover for only 30 critical illnesses for insurance purchased through this portal. If you get an insurance plan through us, you get cover for 37 critical illness for the advanced stage critical illness cover.
  • You need to be aware that there are more stricter EXCLUSIONS.
  • According to the Moneysense website, for example, some insurers may not pay out the TPD benefit if the policyholder becomes totally and permanently disabled arising from travel on a non-commercial aircraft. Some insurers may void the policy contract if the policyholder’s death arises from any criminal activity; or an act of war (whether declared or not). You must read the product summary and policy contract to find out what these exclusions are and whether the DPI meets your needs.
  • Underwriting rules still apply for insurance plans purchased through this channel. If you do not disclose any material facts for your health status, insurers have the right to void the insurance contracts.

Don’t look at cheap premiums alone. Look at the value and benefits behind the price that we pay for.

So you need to read through the terms and conditions of the insurance contracts yourself if you buy term plans online directly with the insurance firms.

Lastly you may be planning for a short holiday for yourself and your loved ones in next 3 months.

Remember to buy the Tenet travel insurance from me.

Your objective is to secure your pocket against life’s unforeseen events and to grow your money.

The travel insurance premium is a small price to pay to have peace of mind while you travel and have fun.  Whereas the consequence without the travel insurance is you have to pay out potential large sum of medical expenses incurred overseas.

If you plan to go for a trekking trip or have pre-existing medical conditions, then please call me at 8168 7459 to discuss more as there are other insurers to consider.
Please note that Tenet’s travel insurance only covers trekking if you participate in an organized trekking trips for these 3 mountains, Mount Kinabalu, Mount Ophir and Taman Negara.

This is my last call for the special promotion for Tenet’s travel insurance.
Enjoy up to 45% off for single trips and up to 10% discount for annual travel insurance plan until 5 April 2015.

For a more in-depth understanding of travel insurance, please call Claire at 8168 7459 for advice.

Claire Soh
senior financial consultant
Smart choices smooth our paths.

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