Subscribe to:
Post Comments (Atom)
skip to main |
skip to sidebar
About Me
- Cedric Tan
- I am a financial advisor practicing in an independent firm in Singapore. My aspiration of my online presence to help fellow residents here to understand financial planning.
Ask Cedric
Q: Is there such a thing as "over-insurance"?
A: Yes, there is. This is when you buy too much coverage on one particular area. The most common area of over-insurance is accidental death, because telemarketers tend to call and sell such plans over the phone. Such plans usually seem very cheap, but if you compare with full and proper personal accident plans on the market, they can be very costly and almost worthless. The next thing you know it, easily obliging customers can have hundreds of thousands of accidental death coverage, which often means little because the probability of death in an accident is so low. In an accident, the chance of a disability is much higher, and that is what personal accident plans should be mainly purchased for -- partial disabilities that can cause unemployment for 1 to 2 years.
More questions on your financial planning? Sure. Ask me!
A: Yes, there is. This is when you buy too much coverage on one particular area. The most common area of over-insurance is accidental death, because telemarketers tend to call and sell such plans over the phone. Such plans usually seem very cheap, but if you compare with full and proper personal accident plans on the market, they can be very costly and almost worthless. The next thing you know it, easily obliging customers can have hundreds of thousands of accidental death coverage, which often means little because the probability of death in an accident is so low. In an accident, the chance of a disability is much higher, and that is what personal accident plans should be mainly purchased for -- partial disabilities that can cause unemployment for 1 to 2 years.
More questions on your financial planning? Sure. Ask me!
Please also visit the following sites
How much emergency fund do I have in the bank, in case I get laid off tomorrow?
Recommended reading that can change your financial life
- Over The Top by Zig Ziglar | Ziglar is a renowned sales coach, but this book is largely about the basic success fundamentals in life. It's completely untechnical, and it helps you put in perspective the things that are truly important, and exposes the fallacies of claims that the world sometimes make. I appreciate this book very much, which a new friend at work gave to me.
- Blog Mastermind by Yaro Starak | Making money need not be about breaking blood and sweat on the mills. Starak teaches step-by-step how you can make money writing a blog (no, the purpose of this blog here is not to make money but maybe another one...). However, the essence of what I picked from his completely free-of-charge manual, is that it is possible to monetize what you are passionate about. Starak shares very honest wisdom what can work and what cannot work. You have to create an account with him, but I assure you, he doesn't spam.
- The Dip by Seth Godin | Absolutely a MUST READ. Most people are stuck in jobs and relationships they got to get out of. Seth Godin helps us realize that the "Winners don't quit and quitters don't win" is only a half-correct statement. Know when to quit, and when to stick. Very easy reading. I finished it under an hour, including taking a bath, yet it completely changed the way I work and handle relationships.
Posts
Blog Archive
Labels
- Adversity (12)
- Book Review (1)
- Critical Illness (1)
- Dollar Cost Averaging (2)
- Eldershield (2)
- Energy Market (1)
- ETF (1)
- Financial Planning (16)
- Insurance (5)
- Investments (15)
- Life (11)
- News (11)
- Old Age (2)
- Opportunity (3)
- Self-perception (7)
- Severe Disability (2)
- The Right Attitude (11)
Search the web
I'm on Facebook too!
All rights reserved. All content are property of Cedric Tan Choon Aik, except for the beautiful picture of the little girl above, which is created by Lowell Sannes (used with permission). All written content are also personal opinions and in no way used as professional advise. Cedric cannot be held liable for his blog posts. Read and use the information at your own risk.
God bless.
"Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding."
Proverbs 4:7
God bless.
"Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding."
Proverbs 4:7
No comments:
Post a Comment