Insurance ; Disability Income Insurance

Disability income insurance pays a fixed amount each month to replace the income you would lose if you are unable to work as a result of an accident or illness. The policy aims to ease your financial loss, but will not completely replace the income you earned before the accident or illness.

How is it normally sold:

  • Term
  • Whole Life Plan

Coverage:

  • Partial Disability
  • Rehabilitation
  • Optional Escalation

Points to note:

  • Employment period; your policies might require you to be employed for a certain period before qualifying for its coverage (E.g more than 30 days of employment)
  • Coverage points; it has a few tranches, mostly 2. There will be a review to see how much should be paid to you after the first 24 months.
  • Duration of Coverage; your policy wouldn’t be more than 65 unless you’re a civil servant for Mindef or MHA.
  • Escalation Option: Higher premium with higher payout
  • Occupation Category; it would be a factor that will affect your premium and you have to inform your agent (this will make it easier to claim)
  • The payout amount up to $2000/$4000/$6000
  • There are currently only three companies that sell this policy (Great Eastern / AIA / AVIVA)
  • There are serve penalties when you surrender

Average Cost (Payout amount $4000):

  • $600 -$750 Annually

Payout on policy:

  • Up to 75% of your average salary

Conclusion

The idea of having an insurance plan is to protect you from unforeseen future circumstances by contributing an insignificant amount of money in the present. If it exceeds the category of “insignificant”, you might want to pull up a statistical chart to gauge the possibility of such a situation happening to you.

Points to think about:

  • Is there a better way to ensure such a payout?
  • Medical history?
  • Future cost analysis against your “investment opportunities”

“+1 Knowledge Point”

 

Advertisements

Insurance ; Critical Illness Insurance

Critical illness insurance pays you a lump sum either when you’re first diagnosed with it or after a surgery that the policy covers. This specific insurance is meant to cover post-hospitalization costs.

How is it normally sold: 

  • Stand-alone plan
  • In a whole life policy plan
  • Optional Rider to an existing whole life plan

Coverage:

  • Major Cancers
  • Heart Attack
  • Coronary artery bypass surgery
  • Stroke/Kidney Failure

Pointers to Note:

  • Waiting period; usually, during diagnosis or for surgery there would be a waiting period – Do consult your agent immediately to ask what is the best course of action. Negligence and naivety can make you lose your benefits if the waiting period is ignored.
  • Amount paid can vary depending on the stage of the cancers
  • Coverage duration is a key factor that you might want to consider (E.g Coverage till you’re age 99 is twice as expensive as compared to the coverage age of 65)
  • Watch out for specific coverage, e.g Death ( only cover death and Total Permanent Disabilities) and Death with critical illness (covers death/ critical illness/ terminal illness)
    • Coverage amount varies between the two categories: death with critical illness tends to have lower coverage amount

Average Cost:

  • Death (without CI) For aged 25-30: $500 – $800 Annually
  • Death (with CI) For aged 25-30: $732 – $1,200 Annually

Payout on Policy:

  • $500K / $1M (Depend on the payout you choose)

 

Conclusion:

The idea of having an insurance plan is to protect you from unforeseen future circumstances by contributing an insignificant amount of money in the present. If it exceeds the category of “insignificant”, you might want to pull up a statistical chart to gauge the possibility of such a situation happening to you.

Points to think about:

  • What is the future value of $500K/$1M when your 65 Yrs old or even 99 Yrs old?
  • What is the opportunity cost of purchasing it now and at a later year?
  • What is the investible amount that could justify a later purchase?
  • Is there an instrument or product that could diversify my need for an insurance?

“+1 Knowledge Point”

p.s my blog link is going to revert back to www.financialveracity.wordpress.com by Aug cuz inflation going up and I’ve no money

 

USDCHF – 4th week of APR

Daily Chart – Tuesday’s close (bullish engulfing) increase market’s probability of trending upwards as the market progressively breaks bearish structure. The market is currently approaching 0.97800, daily levels, it is highly probable to see a decent selloff before market continues its bullish trend.
4 Hour Chart – Price action on the smaller time frame shows that the market is trading in a narrow channel (high bullish momentum), this increases the probability for a channel breakout, which is co-related to daily analysis, that market will have to retrace first. An entry should only be done once exhaustion of bearish retracement is visible in the key zone, such entry would put you in a 1:4 Risk to Reward Ratio.

AUDCHF – 3rd Week of Apr

Weekly Chart – The market appears to be trading in consolidation since late 2015 and has only started to build some sort of a bullish demand in late 2017. Market price action seems to be really sensitive when it reaches whole numbers on this pair. 
Daily Chart – Price action seems to be in a short-term bullish trend with a classical setup. What got my attention into this pair was that market had closed with a rather strong bullish hammer; increase the probability that market to be reversing soon or it’s just a natural” retracement after a quick build up as seen during the month of Mar-Apr.  Nonetheless, this signifies that it is time for me to put up key levels for entry orders.
4 Hour Chart – Tentative entry would have to be in an area where 4hour and daily key levels co-exist; this would increase your winning probability. An ideal entry would be either a bullish hammer pattern or a doji on either key levels. The rough RR ratio would be 1:3 / 1:4 depending.

NZDUSD – 2nd Week of Apr

Daily Chart – The market holds a current short-term bullish structure that is trading in a consolidated zone. It holds a weak bullish characteristic as it fails to break bearish structure over two retracements. This increase the market’s probability of trading lower.
4 Hour Chart – I’ll be waiting for next week’s price action to be trading around this area before deciding to enter. Entry requirement has to show signs of bullish exhaustion and a strong bearish potential (hammer pattern / doji). The ideal RR ratio would be 1:2. Price action can’t break the blue line as it would signify that market is still in a bullish trend.

GBPCHF -1st Week Of Apr

Weekly Chart – Price action on this market pair indicates a highly probable bearish retracing soon; closed with a bearish inverted hammer pattern in key level, with the failure to break previous structure high. The market is currently holding a short-term bullish trend with weak trend structure.
Daily Chart – The market has previously broken its bullish channel with a strong price rejection at 1.350. It would be highly probable for the market to retrace fast in the coming week, take profit level would be in the green zone. Conservative entries would be to wait for the market to break current consolidated structure ( blue dotted line).
4 Hour Chart – As you can see the market has broken the short-term bullish trend, this strengthens the odds of our analysis. The conservative would wait for the market to be trading in the green zone with a bearish trend continuation pattern. The ideal RR would be 1 : 2.5 – 3. If the market would to gap beyond the green zone, it is highly recommended to avoid trending this market pair. 
The first take profit level would be the blue dotted line and the second would be the Daily S&R line (Red).