Tuesday, November 3, 2009
Insuring your risks
Here is a chapter from my book - TKL Financial Planning. It covers the risks that should be insured with low cost insurance, i.e. not tied to any savings plan.
Health care system in Taiwan
Taiwan studied the health care system of 6 countries (including Singapore) and decided to adopt the single payor system in Canada. Their system has proved to be quite successful. Read this report.
Help small business hire again
The key to economic recovery is employment and creating new jobs, especially by small business.
TKL Financial Planning
Someone asked about buying the TKL Financial Planning book. It will be ready by January 2010. It may be available early in PDF copy at the internet shop (projects.easyapps.sg/ishop). You can get a free copy of draft 6a of this book (90 pages) here.
I am selling some PDF versions of my intelligence quiz and sudoku books. They can also be found at the internet shop. The price is $4 per volume (compared to $7.90 for the printed book).
I am selling some PDF versions of my intelligence quiz and sudoku books. They can also be found at the internet shop. The price is $4 per volume (compared to $7.90 for the printed book).
Monday, November 2, 2009
Patient voices and insurance
Even with insurance, you may not be adequately covered. Read this article.
Term Insurance for 25 years
Here are some tips for buying term insurance:
a) Buy a term insurance for 25 years. You need insurance protection for this period. After this period, you do not need life insurance protection any more, as your children would have grown up and can take care of their own financial needs.
b) Even if your children still depends on you financially, you would have accumulated sufficient savings during the 25 years (provided that you invest in the right products that give you a fair return).
c) Buy a term insurance to cover 5 to 7 years of your earnings. If your earnings is $40,000 a year, you will need $250,000 (say).
d) If you wish to reduce the premium, you can choose a decreasing term insurance (where the sum assured reduces yearly over 25 years). Alternatively, you can buy an income benefit that pays 50% of your earnings over the remaining years.
You can read these examples in my book TKL Financial Planning.
To recap: at the end of 25 years, you do not need any life insurance cover. If you still have a housing loan, you can cover it separately under a mortgage insurance policy. Do not allow an agent to frighten you into buying a whole life policy, with the argument that you will not have any cover after the term insurance expires.
Tan Kin Lian
a) Buy a term insurance for 25 years. You need insurance protection for this period. After this period, you do not need life insurance protection any more, as your children would have grown up and can take care of their own financial needs.
b) Even if your children still depends on you financially, you would have accumulated sufficient savings during the 25 years (provided that you invest in the right products that give you a fair return).
c) Buy a term insurance to cover 5 to 7 years of your earnings. If your earnings is $40,000 a year, you will need $250,000 (say).
d) If you wish to reduce the premium, you can choose a decreasing term insurance (where the sum assured reduces yearly over 25 years). Alternatively, you can buy an income benefit that pays 50% of your earnings over the remaining years.
You can read these examples in my book TKL Financial Planning.
To recap: at the end of 25 years, you do not need any life insurance cover. If you still have a housing loan, you can cover it separately under a mortgage insurance policy. Do not allow an agent to frighten you into buying a whole life policy, with the argument that you will not have any cover after the term insurance expires.
Tan Kin Lian
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