Self-employed: How do you manage your finances?

[zbear]

Thanks for sharing. OT - I am just being curious. Why do you choose to be a full time tutor?


Pls share if you don’t mind me asking.

[Rejoin]

zbear:

Thanks for sharing. OT - I am just being curious. Why do you choose to be a full time tutor?


Pls share if you don't mind me asking.

I tried out part time teaching 2 years. I get a sense of satisfaction for every student that I have taught and helped him/her to improve. Consequently, I went into full time tutoring.

[raymondtkleong]

Thanks for sharing. Great that you’ve taken very good steps in your personal finance planning.


If you don’t mind, I would share a few of my thoughts here:

1. Personally, I never mix insurance with investment. They are totally different things. Of course, many use insurance as saving/investment purpose. That’s fine if you know what you’re doing & that fit your plan/strategy.

2. Critical Illness and Term Insurance are two different things. You have purchased CI, which is great. Term insurance, on the other hand, is the cheapest form of life insurance. Like what you stated, $300K for Life Insurance (I assumed is Whole Life plan that cover for life) is not enough. You can top it up with Term Insurance to have more coverage, but the limitation is only for certain tenure, so remember to get the renewable rider.

3. For Health Insurance, are you referring to Integrated MediShield Plan that provided by private insurers, and can be paid of using MediSave (except rider)?

Just my 2 cents.

Note that I am not insurance agent or financial advisor. I just quite into personal finance thingy, like you.

[Rejoin]

You are right. They are different things.


Term insurance has no value at the end of it, whereas CI might have (depending on the plan you purchase).

Yes, for health insurance, I am referring to integrated Medishield plan.

[starlight1968sg]

Rejoin:

Term insurance has no value at the end of it, whereas CI *might* have (depending on the plan you purchase).


Yes, for health insurance, I am referring to integrated Medishield plan.

Examples of term insurance: travel insurance.
Aviva offers some term insurance to S* personnel.
I consider our MediShield and soon MediShield Life, and the Integrated Shield Plan, as term insurance too.

[Mdm Koh]

Thanks for your sharing. I never mix health insurance with investments too as I need my investments to be flexible in case of emergencies. I find that many of the investment-linked insurance plans aren’t flexi, such that if one wishes to stop his or her investments, it would affect the other components of the insurance. In addition, as I travelled around a lot, I also purchased an accident plan.

[scang]

Rejoin:

You are right. They are different things.


Term insurance has no value at the end of it, whereas CI *might* have (depending on the plan you purchase).

Yes, for health insurance, I am referring to integrated Medishield plan.

Actually, there are 2 insurance companies that offer term insurance that \"almost guarantee\" you will be profitable when you eventually die, as they cover up to 99 years old (which 99% of people do not live past that age).

Entry age at 25 years for $2.5k premium = $187.5k total premium paid for lifetime, and payout of $1M, so best term insurance for ROI.

Last entry age to be \"profitable\" is about 50 or early 50+ years old as premium is higher for older ages for the same payout of $1M.

This is probably good for those who are savvy in investing, as they will buy term and invest on their own to get better return than Whole life insurance which gives pretty low returns.

[nerov]

So which two insurance companies are those?

scang:

Rejoin:

You are right. They are different things.

Term insurance has no value at the end of it, whereas CI *might* have (depending on the plan you purchase).

Yes, for health insurance, I am referring to integrated Medishield plan.

Actually, there are 2 insurance companies that offer term insurance that \"almost guarantee\" you will be profitable when you eventually die, as they cover up to 99 years old (which 99% of people do not live past that age).

Entry age at 25 years for $2.5k premium = $187.5k total premium paid for lifetime, and payout of $1M, so best term insurance for ROI.

Last entry age to be \"profitable\" is about 50 or early 50+ years old as premium is higher for older ages for the same payout of $1M.

This is probably good for those who are savvy in investing, as they will buy term and invest on their own to get better return than Whole life insurance which gives pretty low returns.

[ngl2010]

I am interested to know which 2 insurance companies too.