Thursday, November 20, 2008

My insurance portfolio

This post is intended for discussion and reference purposes only especially for the benefits of my immediate family members if in the event anything is to happen to me in the future. No other person should mimic the same portfolio without understand their own financial needs first. If you need help, you may ask me or seek advice from qualified and licensed financial advisor.

Policy NameCoverageRemarks Maturity datePayment Monthly premium
NTUC Enhanced Incomeshield Basic with Plus riderHospitalisation & SurgicalNil NAMedisave & Cash $13.58
NTUC Family Insurance300K Death/TPD and 120K CINil 21-Dec-26Cash $60.62
NTUC LUV Deluxe100K Death/TPD/CINil 30-Jun-48Cash $20.00
Great Eastern DPS46K(Basic) + 7.85K(Bonus) DeathNilNAMedisave$3.00
UOB Hospital Income ProtectorDaily $100(1st to 30th day) then $200 (up to 520 days)Refund of 25% of premium if no claims made for every 3 years NACash $13.86
HSBC TargetSaver25K Death or 30K projected maturity benefits18 years endowment plan for daughter 19-Aug-47Cash $114.44
Total $225.50

Attached above are all my existing policies. I started sourcing out for insurance immediately after completing my graduate studies. The first two policies that I bought were Prudential Prucash and HSBC TargetSaver. What a way to start one’s insurance portfolio with endowment plans. In my opinion, endowment is an expensive and non-predictable but useful saving product especially for the less savvy individuals only. You may want to read an article on the Best endowment plan written by me.

After reviewing my insurance portfolio, I have decided to terminate Prucash and keep TargetSaver. The main reason for terminating the former is because, I was too naive to believe that the policy was sufficient to cover my insurance and saving needs. I free up some cash and thus decided to sign term insurance with multifold of coverage than prior at even lower cost. In fact, my monthly premium for my entire insurance portfolio (excluding TargetSaver) is only $111.

I may need to do a review of my insurance portfolio again if ever my financial needs change in future. But right now, I am happy with my existing coverage and welcome any suggestions that could improve it or to make it more comprehensive.


Anonymous said...

Hi Mike,

Thanks for sharing your insurance portfolio, I thought that it would be a useful guide for people who have budget considerations.

By the way, I noticed that you do not have any whole life plans. Maybe you can share with me your planning ideas and how you managed without including whole life plans.


Mike Dirnt said...

Hi V,

1) i take insurance payment as a form of expense. therefore im looking at its cashback values. i look for something that gives maximum coverage at lowest cost

2) i like to insure myself only during the stage that i have most liabilities. i see insurance as a hedge against your liabilities. when im older, these liabilities are lesser like house fully paid, children grown up, etc. i prefer to keep the balance in saving of NOT buying a WL policy into my own investment

3) IMO a good H&S and elderlycare are sufficient to cover myself when i reach old age

since you said you have budget constraint, try not to compromise your coverage for a lower paying premium. that is not right. buy a better coverage at an amount you are comfortable paying

zeff said...

Hi Mike,

I saw that you had the NTUC LUV Deluxe plan. it seems like a good plan to me cos it's rather cheap (I'm assuming you are playing for a 40 years plan, is this right?)

I can't find it on the Income Website though. any idea if this plan still exists?

Anyway, great informative website for a financial planning noob like :)

Mike Dirnt said...

Hi Zef,

if im not wrong the maximum coverage is till 70 years. take note you have to be a ntuc member to apply for the luv plan. here is the website:

zeff said...

so yours is 40 years?

how much do i have to pay for each month in order to be a ntuc member?

Mike Dirnt said...

yes mine is a 40 year plan

im paying $9 monthly for the membership. but my company subsidise $6. check if your company can subsidise

for more details, you can read at the following link. there are many benefits of a membership

Anonymous said...

Hi Mike,

Saw you have NTUC Family Insurance? mind to share how its work? I mean 1 policy to cover all family member (me+spouse+child+future child)?

Mike Dirnt said...


yes i bought term insurance for my wife. so her plan and mine is under one policy. as long mine is active, hers is active as well i think

Anonymous said...

Hello Mike
I chanced upon your blog while looking for more information on the NTUC Family Insurance plan.

May i ask if the NTUC Family Insurance plan in your post comprises of
1) term rider (180K coverage) and
2) living benefits rider (120K coverage)?

Thanks in advance!


Mike Dirnt said...

Hi Derrick,

Under FIP, my 300k is just for death/TPD. and 120k for CI.

CapsuleMoney said...

Hi Mike,

Sorry to bump up this old topic of yours.

For LUV, i assume that your coverage is deluxe plan, $20 , coverage 100k with 30 CI.

However, if you are from the SAF, get Aviva term insurance, 100k, which is $12.80 monthly, top up another $10 for 100k CI coverage. Which total up to $22.80 monthly, comparing LUV, it is only $20.

However for the LUV, once claimed CI or TPD, the coverage will wear off? Because Aviva is an add on, so i assume it will be separate. I dont have a chance to talk to my IFA yet. Maybe you could shed some light if you got the product knowledge?

Much appreciated.

Mike Dirnt said...

Hi CM,

Just take note the SAF Aviva term insurance is a group insurance. And you should know the cons of a group insurance. Contract between Aviva and SAF may terminate and coverage can cease. You need to find out more about this. I got no idea because I served SPF in my NS.

AFAIK you can only claim once. LUV and any other CI plans do not provide multiple CI coverage like Pru Multiple Crisis Cover. And you should know that the plans become expensive if you want to cover many times.

I advice you seek an IFA to know more their coverages. Tell me if you need one. :)