Don’t scrimp on the travel insurance for your vacation

It’s the June school holidays! 

And it is also a popular period of the year when families choose to go on a getaway outside of Singapore. We know that this is a peak period to travel, but I wonder how many of us are actually aware that more than half of Singaporean travellers don’t buy travel insurance for their trips (according to a report here).

While I can reconcile with some of the extreme budgeting measures that a traveller adopts in order to scrimp and save for their big vacation, going without travel insurance is one that I fail miserably to understand. What’s even more alarming is the statistics that was revealed in the report mentioned above!

Now, let me attempt to pen down the intensity of my astonishment toward this alarming statistics by listing a few key benefits that travel insurance could offer to the Insured traveller, and hopefully after reading this, you think of getting travel insurance the moment (or even before) you book/plan for a trip. Bear in mind, leaving it until you need it, is too late.

The coverage of the travel insurance begins from the day you schedule the policy, right to the day you arrive back in Singapore. And to some extent, even hours/day(s) after you are back! A big part of our travelling expenses are time-sensitive, e.g. Accommodation – i.e. we pay according to the number of nights we booked the hotel room and likewise for the duration which we used the Jet Ski in the resort. Fortunately, this does not apply to travel insurance. The premium rate of travel insurance is applied on the duration of the vacation. However, the Insured traveller is eligible for claimable events even before and/or after the vacation.
Just an example to contextualize this: If something happens to the Insured due to medical or compassionate grounds that prevents him/her from travelling, AND/OR if the Insured needs to visit a doctor a couple days after he/she had touched down back home are claimable events provided under the scope of benefits of travel insurance. Hence, that is why you should get your travel insurance as early as possible.

Certainly, there are more reasons to get travel insurance. Medical expenses and Emergency Repatriation benefits, just to name of couple, would already chalk out a hefty sum when the need arises and regrettably so, if the risk was not transferred to the Insurer.

There is also the Personal Accident coverage when a holiday is greeted by an accidental mishap. The payout under this benefit would definitely render some form of assistance to the Insured and/or the Insured’s family members. Under the same benefit, even incidents of much lesser magnitude, for example, food poisoning, could be compensated.

In a nutshell, travel insurance essentially covers you for a much longer period that you effectively pay for. The diversity of the magnitude of insured events is also incredibly enormous. I hope you have gotten my drift after reading this. Yes, get your travel insurance. And get it early. In addition, please help to share the importance of this with people whom you care and matter to you.

[Newsletter]Which estate cannot be distributed by Will?

Which estate cannot be distributed by Will?
  o Bank Account
  o CPF-OA (Ordinary Account)
  o CPF-IS (Investment Scheme)
  o Insurance Policies (without nomination)
  o Property held under "Tenancy In Common"

Click here to answer this question and the first 10 correct answers will win a USB Mobile fan (for Android)

[Newsletter]We can only surrender our insurance policies back to the insurer. True or False?

The answer is FALSE.

Before proceeding on surrendering your policy, do take note the following:
1) Insurance purchased is meant for long term
2) If you intend to surrender/sell your insurance policy because you plan to buy new ones, it's recommended to get the new policy approved first (clear any additional underwriting) before surrendering the old one. If everything is the same (no extra condition/underwriting e.g. health is as good), then can consider to proceed surrendering your old policy.
3) Do note also that though some old insurance policy covers lesser things e.g. number of Critical Illness, but the terms used is more generic also. The more generic the term, someway it can mean more coverage. Currently the new terms used are quite specific like which specific artery burst then only can be claimed.

Recently I wanted to surrender my policy (for personal reasons), I checked the company website and the amount indicated is the exact amount in the "Projected 5.25% investment return" column in my policy 5 years ago. So far this is the only company that never gives below the higher end of the projected target. My policy:

   Company: Tokio Marine
   Plan: Towards My Legacy Plus (LP)

Yup, it's "Tokio Marine". The famous company that so far, the only company that never fails to pay at the higher end of the projected investment return column in your policy.

Luckily or coincidentally, I read an article from "The Edge" (dated 20th June 2016) about selling your life policies to 3rd party. You can even submit it online for a free quote. Since I plan on selling, I gave it a try. I emailed them my details and within 2 working days, they came back with a quote. And to my surprise, it's about 5% (~$300) more than the surrender amount that my original company provides.
According to the PIC, if the policy is endowment policy, the surrender amount is even higher.
Especially if you bought an endowment for the first year and plans to sell it the 2nd year. Normally the original company (or provider) have no surrender value for first year or two. But the 3rd party does. And I heard, it's quite substantial also.

So I agreed with him on the amount, and he ask me to go directly to Tokio Marine office to meet him. There I sign a "Absolute Assignment of Insurance Policy Proceeds" form to the company. Once signed, the cheque of the full amount is given to me immediately.

Currently the 3rd party companies which I know that accepts policy selling are:
1. Purvis Capital - Accepts both Endowment & Whole Life Policies
2. REPs Holdings - Accepts only Endowment Policies
As my policy is Whole Life, I used "Purvis Capital" and the service is quite prompt.

So if you plan to surrender your policy, check out some of the 3rd party website for "free quotation".

Thinking of trying out SQ Suite class? Now it's possible.

Envy those flying Suite Class like the link below:
What It's Like to Fly the $23,000 Singapore Airlines Suites Class

Don't need to envy too much cause you can too by just paying the amount equivalent to a business class. The trick is in miles redemption.

E.g. Flying from Singapore to Switzerland on 19Oct17 and back on 26Oct17, the cost of a Business Class (Saver) is $5,383.70 and First Class/Suite (Saver) is $13,783.70.

If you use miles for redemption, you will need 170,000 miles with additional tax of $83.70 for Business Class (Saver) and 230,000 miles with additional tax of $83.70 for First Class/Suite (Saver).
If you buy the miles directly from Singaporeair, it will cost you USD$40 per 1,000miles or about S$56 (based on U$1 = S$1.40). So the total cost:

Business Class: (170 x $56) + $83.70 = $9,603.70
Suite Class: (230 x $56) + $83.70 = $12,963.70
Comparatively business class is more expensive but Suite Class is cheaper by $820.00.

However there are other ways to use/earn miles. Most commonly is by using your Credit Card purchases for miles redemption.

Second method is more of "unorthodox" where you can buy miles from 3rd parties (e.g. from Carousell). The current rate is about S$22 per 1,000miles. Based on this rate, the total cost:
Business Class: (170 x $22) + $83.70 = $3,823.70
Suite Class: (230 x $22) + $83.70 = $5,143.70

For business class you are paying only $3,823.70 which brings a total savings of $1,560 (29%).

Notice the bold font. Yup, the Suite class cost only $5,143.70. It's even cheaper than your business class fare if you pay by cash ($5,383.70).

So, flying suite class is no longer a dream. You too can fly in style!

However not everything is perfect. There's one downside of points redemption i.e. the seat availability. So in order to secure a seat, just need to make sure you book early.