Evelyn Cai’s Blog

Nomination made under NTUC Income is governed by Cooperative Societies Act – and this Act allows a cooperative member to make a nomination, which can include spouse, kids, relatives and friends. We also allow new nomination to be made as it will supercede and replace any earlier nominations made in respect of the same policies.

For other insurance companies, under the existing system  (which is still under review and a guide will be prepared by LTA), an irrevocable statutory trust is created whenever the buyer of a life insurance names his spouse or children as beneficiaries. This is the current issue whereby under the Section 73 of the Conveyancing and Law of Property Act (CLPA); the limitations are extensive as you cannot change your beneficiaries, or cash in your policy. And you cannot take out a loan on it without the consent of the beneficiaries.

In other words, the policy effectively becomes the property of the beneficiaries, protected by legislation designed to ensure that such policies are safe from creditors in the event of a bankruptcy.

Even if the beneficiaries give their consent, section 73 may not be revoked.

Many policyholders also do not realise that – regardless of whether or not they have a spouse or children – if they name other parties such as grandparents, siblings, aunts and friends as beneficiaries, these people have no legal claim to policy proceeds.

McKinsey Director, Stephen Binder said that singaporeans are only covered on average 2.8 times their average annual income, well under the suggested level of 10 to 12 times.

For eg. if you earn $50k a year, your life insurance cover extend to at least $500k.

The above results are despite the life insurance penetration rates for the mass affluent and upper mass segments which is 91% and 82% respectively. For the lower mass segment, its only 61%.

The above information is extracted from a Business Times Article dated 12 June 2009. 

Based on today’s The Business Times, it was mentioned by the Ministry of Trade and Industry that the Singapore economy has probably hit bottom. Facing with the uncertainty of the external outlook, its keeping its forecast of 6 to 9 % contraction in 2009.

Mr Menon (MTI second permanent secretary) cited 4 key factors critical for Singapore’s climb out of recession: firm US recovery, particulary financial stability; return of consumer confidence in America; fiscal stimuli at work in various countries; and not least, the absence of any major financial shock.

Other analysts forecasts:

Morgan Stanely – initial phase of the recovery will likely be uneven, with the sequential declines easing from now on.

OCBC – A full demand recovery may remain a 2010 rather than a 2009 story.

Citygroup – Expects the economy to be out of recession sooner by 4th quarter this year and return to pre-recession levels by end-2010 or early 2011.

Former Fed chairman Alan Greenspan – financial crisis has yet to be over even as borrowing costs tumble, warning that US banks must raise “large” amounts of money. There’s still a very large unfunded capital requirement in the commerical banking system in United States that’s got to be funded. There’s still a very serious potential mortgage crisis until the prices of the homes flatten out.

Fighting swine flu will be a long haul process and there’s no way of knowing when the virus will resurrect itself and how severe the next wave will be.

Swine Flu

• a form of influenza except that it has a novel strain that comprises genetic elements of avain, pig and human influenza.
• scientists are more familar with it and already have drugs to combat it.
• infectious in 24 hours before any symptoms show in a victim.
• quarantining may not be effective since the infected person could be transmitting the virus the day before he falls sick.
• no visible symptoms and 1 out of 3 victims does not know that he/she is infected.

SARS

• a new disease surfaced in 2003, causing much panic because nothing was known of its nature.
• was a mystery and took time to decode it.
• infectious about 2 weeks after it had struck a victim.
• victim displays symptoms like fever and coughing.

1. Although the policyholder is healthy, due to swine flu outbreak he’s not permitted to carry on with the trip, will he be able to claim from the travel insurance?

The current swine flu outbreak is not covered under the Trip Cancellation’s policy terms.

Swine Flu is a Virus that falls under our GENERAL EXCLUSIONS – 2(B), which is not covered.

GENERAL EXCLUSIONS

1. No compensation shall be payable unless the loss of life or disablement takes place within 90 days from the date of accident or injury.

2. This Policy does not cover claims for loss or liability directly or indirectly caused by or arising from:

(a) travel booked or undertaken against medical advice or for the purpose of obtaining medical treatment.

(b) self-injury, your criminal act, suicide or attempted suicide, provoked assault, intoxication, drugs, intemperance or insanity, veneral disease or virus including acquired immunity deficiency syndrome (AIDS) or any physical defect or infirmity, pregnancy, childbirth or menopause.

Should you decide not to proceed with the trip, you may inform us and we will terminate the policy for a full refund on the insurance premium.
 

2. If policyholder is ill, having fever or flu (may not be Swine Flu) and cannot go for his trip, can he claim?

Our trip cancellation covers only the following insured perils:

(a) Insured’s death or death of your family members or travelling companion.

(b) Serious injury, sickness or disease suffered by you or your family members.

(c) The bankruptcy or insolvency of the travel agent or airline.

(d) The public conveyance in which you are travelling in is hijacked, and your journey is interrupted as a direct result for at least 12 hours.

If he/she is ill certify by the doctor that not fit to travel then is covered under trip cancellaton (b) but if its due to swine flu then he is not covered.

With effect from 1 May 2009, each CPF member needs to set aside a minimum of $30k in the special account before investing.

This limit has been raised from $20k to $30k.

You are not required to liquidate your CPF-SA investments if you had purchased them before 1 May 2009.

There is no change to the current requirement for CPF members to set aside $20,000 in the Ordinary Account before they can invest Ordinary Account monies.

More information can be found: http://mycpf.cpf.gov.sg/Members/Gen-Info/CPFChanges/CPFChanges_2009.htm

The changes are good as alot of people whom I met had commented that though they have twenty or thirty over thousand dollars in their medisave account which they cannot really use, like overseas treatment which may be cheaper in China or Malaysia compared to Singapore or the need to utilise the funds for
their employment of maids or nurses when they need extensive care.

Medisave will be allowed for people going overseas for hospital or day-surgery treatments, a request first mooted by a unionist at a dialogue session last year. The only condition is that the referral and claim has be done via a local hospital here, with the claims covering only the room & board charges and operation fees.

Now with the extension of the use of Medisave to cover home palliative care,  terminate terminally-ill cancer patients, who prefer to spend their last days at home, will be very helpful.

The above scheme will be ready when the local hospitals are ready.