Great Eastern Solution To Wealth Accumulation

As Singaporean live longer and face higher costs, finding investments that can keep a lid on medical expenses while yielding a steady income over the long term has become key for many when planning for their retirement.

The recent East Asia Retirement Survey by the Global Aging Institute found that 66 per cent of Singaporeans surveyed were concerned about having enough funds when they retire, and an overwhelming 88 per cent did not expect to depend financially on their children when they retire.

"With longer life expectancy of Singaporeans (age 85 and 80 for women and men respectively) and Singapore being the fourth most expensive city to live in, it is not surprising that many of us find it challenging to plan ahead and prepare for our retirement," said Tony Chow, assistant general manager, China Life Insurance (Singapore).

While many Singaporeans are aware of the need to plan for their retirement, many have yet to start the process of doing so. The Singapore government recently launched CPF Life and enhanced the CPF Minimum Sum Scheme to help its citizens with their finances when they retire. However, as CPF Life payouts may not be sufficient, Singaporeans need to look to other investment products to meet all their financial needs when they stop working.

"From a wealth management angle, insurance has always been one of the key components of wealth management solutions. Insurance can address the varying needs of an investor pertaining to savings and investment (wealth accumulation), legacy planning (wealth distribution and preservation) and wealth protection," said Mr Chow.

However, industry players said that there is no a one-size-fits-all approach when it comes to retirement planning. Rather, there are a number of factors to consider - such as time horizon, risk appetite, preferred payout mode and affordability.

Building a diversified investment portfolio is also key in mitigating risks, and the approach you take will change as you age. You might choose to take more risks when you are younger to potentially earn returns that can beat inflation. As you near retirement, however, the priority should switch to capital preservation to minimise risk exposure as there would be less time to rebound from large losses.

STEADY INCOME
Recognising the need to make their savings stretch for a longer period as life expectancy increases, more Singaporeans are seeking products that can pay out regularly over the long term.

"Customers increasingly prefer to have regular payouts or an income stream upon retirement, as opposed to a lump sum payout that they then have to manage throughout their retirement years," said Daniel Lum, director of product and marketing at Aviva Singapore.

There are insurance savings plans which are designed specifically to offer a regular income stream in retirement. For instance, Aviva's MyRetirement and MyRetirement Plus offer a guaranteed monthly income for 10 or 20 years respectively, starting from your desired retirement age. Policyholders also have the flexibility to choose to withdraw the returns in a full lump sum, or partial lump sum and partial monthly income.

The benefit of such plans is that it is structured so that you know exactly when you will be getting your returns. This provides policyholders with more certainty in their retirement years.

Meanwhile, a product introduced last year from Prudential is the first insurance savings plan to allow customers to grow their wealth up to the age of 100. The PRUwealth income plan is designed to deliver potentially higher returns to customers while ensuring that their capital remains intact after the 20th year.

Another of the insurer's products, PRUlifetime income, is a whole of life plan that can be transferred from a parent to a child, providing financial support over three generations, including the grandchild.
Insurance also plays an important role in helping protect you from costly medical expenses that could potentially wipe out your savings, which differentiates them from other investment products.

In the event of disability, long-term care can be very costly and often for a prolonged period of time. Aviva's Long Term Care Study 2011 found that the typical costs incurred averages out to about S$2,000 per month. With a lower ratio of dependents supporting the aged in Singapore, it is important to plan so that you can afford the needed long-term care and continue to pay the bills, insurers said. While the national Eldershield scheme offers a basic level of protection, those seeking more comprehensive coverage can purchase products that enhance 
                                                                              protection.

"We recognise that the risks of illness and long-term disability increases with age. It is important to safeguard against the threat of high medical costs and recuperation expenses. Huge bills for treatment and recovery could easily deplete your nest egg," said Great Eastern Life's chief product officer, Lee Swee Kiang.

He recommended having in place a comprehensive hospitalisation and surgical (H&S) plan and a long-term care plan as the basic blocks of your retirement planning portfolio, alongside wealth accumulation plans. Great Eastern Life offers a Supreme Health and Total Health for comprehensive H&S needs and Eldershield Comprehensive for long-term care needs.

PURSUING YOUR DREAMS
However, retirement is no longer just about making ends meet and being able to pay your medical bills on time. Singaporeans now expect more from their retirement, adding to the urgency of having sufficient savings once they stop working.

Findings from a recent social media campaign on retirement by Great Eastern Life showed that Singaporeans now think of retirement as a new phase in life that offers them an opportunity to pursue new experiences. From the campaign, GE found that the the top five pursuits that Singaporeans seek after they stop working are: travelling around the world; pursuing personal interests; developing a second career; spending time with loved ones; and contributing back to society.

Said Mr Lee: "At Great Eastern, we are advocates of a 'rich' retirement for everyone. A 'rich' retirement in our definition consists of not just having sufficient cash to retire comfortably but also ensuring your nest egg is preserved during medical emergencies or unforeseen circumstances. With proper planning set in place, you are free to pursue your retirement dreams wholeheartedly."

---

Singaporeans' attitudes to saving
THE Aviva Consumer Attitudes to Savings study is conducted three times a year. The latest study conducted in November 2015 found that:

• 53 per cent of Singaporeans are worried that they will not have enough money when they retire to provide an adequate standard of living.
• This is despite 56 per cent of Singaporeans saying they have already started saving specifically for retirement.
• This is how they are saving specifically for retirement: CPF (69 per cent); bank deposit or savings account (64 per cent); savings product from a bank or insurer such as endowments and investment-linked plans (53 per cent); direct investments such as unit trusts, shares, bonds (37 per cent); property (28 per cent).
• 46 per cent think that they are going to have to work beyond the normal retirement date to fund their retirement while 56 per cent say that they would like to continue working "either full time or part-time" after the usual retirement age.
• When selecting a retirement savings product, Singaporeans tend to prefer guaranteed returns. 67 per cent would prefer higher guarantees with lower variable returns, compared to 15 per cent who would prefer lower guarantees but with higher variable returns.
• 22 per cent think that the funds they need in retirement for an adequate standard of living is less than S$2,000 per month. 43 per cent think it is about S$2,001-4,000; 16 per cent think that it is about S$4,001-6,000; 13 per cent think that it is more than S$6,000, and 6 per cent do not know.
• The majority of Singaporeans have planned for their funds to last about 10-15 years (36 per cent) or 20-25 years (32 per cent). 16 per cent have planned for their funds to last about 30 years or more, while 9 per cent have planned for only five years or less. 8 per cent do not know or have not thought about it.
• Provisioning for healthcare expenses should be a key part of retirement planning. 68 per cent of Singaporeans plan to pay for medical expenses incurred in old age with Medishield, 66 per cent plan to use Medisave; 45 per cent have planned with an Integrated Shield plan; 30 per cent are planning to rely on cash savings; 8 per cent plan to rely on their family members; and 9 per cent have not thought about it.

AIA Abandoned Agent - Hero To Zero

Ms Low also aired her disappointment at AIA and Motion Insurance Agency over what she feels is the cold treatment she has received from them since she was sued.

The Ongs had filed the suit in 2012 against AIA and Motion Insurance for negligence and breach of duty of care - thereby causing loss to them - when handling their insurance matters, as well as asserting AIA's vicarious liability for Ms Low's fraudulent acts.

AIA had counterclaimed that the Ongs were in a conspiracy with Ms Low to defraud AIA. This was also Ms Low's defence against the Ongs. Despite alleging that the three are in a conspiracy, the insurer had asked Ms Low to be its witness and AIA appeared to have paid $35,000 to legal firm JLC Advisors to procure Ms Low's affidavit.

At the start of the trial, two handwriting experts agreed that the numerous documents purportedly signed by the Ongs were forged.

On Tuesday, Ms Low alleged that she agreed to join Mr Ong in the ploy to defraud AIA because she had an ambition to be its top agent. She said she had not "thought that far" (that she could be liable to be charged in court for a crime) and had always thought they would change their minds.

She claimed that she did not see the Ongs sign their application insurance forms but despite that, she signed as a witness on the forms, which she knew was the wrong thing to do. She disagreed when Mr Ong's lawyer, Ms Deborah Barker of KhattarWong, asked if she had forged the Ongs' signatures.

Ms Low also said that AIA "has never offered any help" to her since she was sued by the Ongs. She alleged that even "very, very simple requests like requests for documents" were turned down by her previous employer, so she had to go through the "official way".

She claimed that there was a discrepancy in information disclosed by AIA during the Ongs' suit against her as compared with what the insurer is currently disclosing in its suit with the Ongs.

"The information that they could have disclosed would have helped me at that point in time, but they did not disclose it. Now, because they are in this suit, they have no choice but to disclose all this information to protect their own backside. So I'm sorry to say after the suit, I do not see them as good employers," said Ms Low.

During her cross-examination last Thursday, Mrs Ong told the court that she had no inkling that she would "get so much misery" with the fake AIA Thank You policy.


"At that time, when we wanted to take it, you know, it was just a simple and nice policy suited for us... if we set aside for our old age so that we don't depend on our children... I did not know that it (would) turn out to be a mess like this," she said. Amid the legal acrimony, the Ongs spent their 50th wedding anniversary in court last Friday with Mrs Ong on the witness stand.

The couple are seeking damages totalling between $4.2 million and $7.2 million. They allege that AIA and Motion failed to verify directly with them when five tranches of the AIA Thank You premiums of US$5.06 million did not match premiums payable for the unauthorised policies, resulting in suspiciously large refund cheques not being encashed for a long time.

Ms Low also appeared to have been given free rein in managing the funds, allegedly instructing AIA to issue the unauthorised policies.

Witnesses who have been cross- examined include two handwriting experts, the Ongs, their son, Mr Peter Pramana, and their two private bankers.

Advantages of Single Premium

Want to get over with buying an insurance policy at one go because you have some money lying idle? A single premium insurance policy is just the thing for you then. As compared to a traditional or a regular premium insurance policy where you pay insurance premiums at periodic intervals, this is a onetime payment solution for those who do not want to get into the hassle of periodic payments.

Once the premium payment has been made, you become the owner of a policy with a specific death benefit. It is literally a "fill it, shut it and forget it" kind of a policy, as you do not have to worry about paying any further payments or the lapse of your policy in case in forget to make any payments. All major insurers provide single premium life insurance policies for the benefit of their customers and you can use the help of a policy aggregator website to find out which one works best for you.

When should you buy a single premium policy?
Most people prefer to buy a single premium life insurance policy when they have a lump sum available with themselves. It may be a hefty tax fund, a cash gift from a relative an inheritance or some windfall gains in case of business owners. If you do not wish to spend this money right away and are wary of investing it in the markets, or you think there is some more insurance cover you could do with, you can certainly opt for a single premium life insurance policy.

                                                             Protect your wealth against taxation
A single premium life insurance policy provides you protection against the axe of taxes. Further the sum assured is also tax free in the hands of the receiver. God forbid if something were to happen to you, your beneficiary would receive the money completely tax free. However do bear in mind, that on a single premium life insrance policy you will get the benfit of tax exemption only once, as you are investing in it for a single time only.

Forget about lapses
Since the policy is paid up in full upfront you never have to worry again about the policy getting lapsed in case you forget to pay the premium. It is valid till the entire term of the policy and renders the sum assured after the policy term comes to an end. Creates cash value.

When you make the payment of single premium on a policy you are creating an asset for yourself. In case you need to avail of a loan facility, this can come in handy and can be used as a collateral against your loan. Besides, the cash value of the investment you have made accumulates every year, without you having to invest year after year.

Thus as you can see, single premium life insurance policies, though usually not the preffered vehicle for securing one's life, can certainly offer some benefits. But the largest factor you should keep in mind is the affordability part of it. So if you can think of sparing the lump sum and locking it away to take care of your insurance needs, go ahead and get yourself that single premium insurance policy.

Premium Payments Option

Life insurance is a long-term contract. To keep the life cover active, one needs to keep paying the premium regularly till the end of the contracted term. Therefore, ensure that you keep the policy in-force by renewing it well within the due date. If the premium due date in your life insurance policy is approaching, here are some of the options you can explore to help you pay the premium on time. Choose the one that suits you best and saves you time.

Payment by cheque 
The traditional way of making renewal premium payments for your insurance policy is through cheque. For this, you would have to drop it in any of the designated drop boxes or submit at the insurer's office. As proof, you get a receipt that the cheque has been submitted. Importantly, write your policy number in addition to your name and phone number at the back of cheque or demand draft.

The policy is renewed subject to clearance of the cheque, hence make sure the cheque payment is done at least three days before the due date. You may also write the policy number on the front of the cheque beside the insurer's name. This ensures your cheque does not get misused.

                                                  Payment by credit card
You can pay your premiums using your credit card by filling up the credit card standing instruction form. The form may be downloaded from the insurer's website or can be collected from their office. This form, along with the photocopy of the front side (never reveal the back-side of your credit card carrying the CVV number) of your credit card, should be sent to the insurer's office. Alternatively, you canwalk into any branch, fill the form and get the card swiped. Ensure that you provide the authorization for a specific period of time while giving your mandate.


Payments at ATM
You may pay renewal premium even at ATMs. Few insurers have started offering such facilities in which the bank and the insurer enter into a tie-up. To avail such services, one needs to register the policy details at the bank's website. Ask your insurer for any such tie-up that they have with a bank.

Payments through SMS
Some insurers offer the facility of premium payment through SMS. Bank customers holding a debit card can pay using this method. They first need to pre-register through the bank's ATM to receive a dynamic unique PIN. The actual payment may be made without necessarily going to the ATM. Ask your insurer if they provide such a facility.

Bank account auto-debit facility
If remembering your premium due date has been difficult, you may choose the auto-debit way. Under this system, you may either set up a direct-debit or get it done through the electronic clearance system (ECS) mandate. By doing this, you provide auto-debit instructions to the bank to regularly debit your premium payments from your account. On every premium due date, your bank account gets debited automatically and money gets transferred to the insurer. You can avail this facility by submitting a filled-up mandate form along with a cancelled cheque at any of branches of the insurer. Before applying for this, check if such a facility is enabled with your bank. Some insurers offer such facilities only at the inception of the policy.

Bank collection centers
Some insurers have started tying up with banks for collection of renewal cheques. You need to know which banks have such tie-ups with your insurer near your location. One need not be a customer of such banks but may still use their services to pay renewal premium.

Online payments
If the due date is already near and access to a branch is difficult, going online is the best way forward. One needs to register on the insurer's website along with the policy number and other policy details. Thereafter, renewal premium payment can be done either through a credit card or net banking i.e. directly from your bank account.

                                                                           Mobile payment
Few banks have started allowing payments to be made through mobile phones under the integrated mobile payment service (IMPS) feature. You would have to register your bank account to avail this service to pay your policy renewal premium.

Conclusion
For each payment channel, insurers have their own set of restrictions and conditions. Get to know these from your insurer to better manage your policies. Ensure that your address is updated in the insurer's records. Else it may happen that the renewal notice does not reach you on time. Also, keep a record and set up alerts in your phone and maintain a diary for due dates. Normally, there is a grace period of 30 days (15 days for monthly renewals) from the due date for paying the premium. However, making payments on time inculcates the habit of sticking to your commitments.

Allianz To Exit Italy

German insurer Allianz is looking to sell a US$5 billion portfolio of life insurance policies in Italy, sources familiar with the matter said on Wednesday.

Europe's biggest insurer has picked Goldman Sachs to run the sale of the closed life policies, which no longer accept new business but remain on an insurer's books as premium paying policies, the sources said.

Allianz, which ranks as Italy's fourth biggest life and health insurer, is facing pressures from rock-bottom interest rates and has decided to sell a series of Italian life policies which pay a 2% minimum interest rate, they said.

The portfolio - worth around 4.5 billion euros (US$5.09 billion) - has drawn interest from London-based private equity house Cinven, the sources said, adding that no deal was certain. US private equity fund Apollo, which initially expressed interest in Allianz' closed-book, has now walked away from the negotiations, they said.

The deal could be worth around 200 million euros, two of the sources said. Allianz and Cinven declined to comment. Spokesmen at Goldman Sachs and Apollo were not immediately available for comment.

Last year, Allianz said it was planning to divest chunks of its multi-billion euro portfolio of old insurance policies in international markets while refocusing on its domestic assets.

The German company's decision to sell parts of its Italian life business comes amid a wave of consolidation in the life and pensions sector. Last year, rival Aviva (AV.L) clinched a 5.6 billion pounds ($8.05 billion) purchase of Friends Life, which had a strong focus on closed life books.

New European capital rules make it more capital-intensive for insurers to hold closed life insurance business on their books, encouraging consolidation.

Cinven has been on the prowl for insurance assets since the creation of an acquisition vehicle in 2014, known as Heidelberger Leben Group, which was launched in partnership with Hannover Re after their joint purchase of Skandia Germany and Skandia Austria, part of Old Mutual.

In September, Cinven sold Britain's Guardian Financial Services to Admin Re, part of reinsurance giant Swiss Re, for 1.6 billion pounds.

Deutsche Bank is now considering strategic options for its British insurance unit Abbey Life, with Phoenix Group Holdings, Britain's largest consolidator of closed life funds, seen as one of its suitors.

The Northern Giants

Brazil, the “football kingdom” that produces world class football stars; and there are countless people there who love football, among them, of course are those talented ones. So, to become a “Professional Superstar Footballer” there, one has to be extraordinarily gifted on top of having a good physique.

However, there is a team there with an average height of only 1.22 meters,which is shorter than most people, but this is one of the most popular local football teams, and able to attract 30,000 audiences in every game they play. They are the famous “Northern Giants’ team—the world’s first football team that is formed entirely of dwarves.

The shortest member of the “Northern Giants’ stands at only 0.9 meters tall, but their physical conditions can never limit their dreams of becoming footballers! They might be small in size, but they are driven by powerful dreams and ambition which spur on their capabilities.

Who Is Nisha Ayub

Malaysian transgender activist Nisha Ayub, once jailed for cross-dressing and sexually assaulted in prison, is the first trans woman to win the US Secretary of State’s International Women of Courage Award.

Nisha ― who co-founded two transgender rights NGOs, the SEED Foundation and Justice for Sisters ― was one of 14 women around the world who received the 2016 award yesterday.

“Nisha Ayub, for your extraordinary work to promote societies that are more just, fair, and tolerant regardless of sexual orientation and gender identity, we honour you as a woman of courage,” said US Secretary of State John Kerry when he presented the award to Nisha at the US State Department in Washington DC yesterday in a ceremony that was broadcast live.

“Nisha Ayub has been the target of discrimination and violence in Malaysia for many years, even being imprisoned for three months during which she endured sexual abuse and humiliation. Despite the obstacles, Nisha has dedicated her life to protecting the transgender community through her work with the NGO SEED. She supports sex workers and people living with HIV.

“She provides legal aid and raises awareness for the persecution of LGBT persons. And she continues to face threats, but remains committed to her work because it is what she cares most about and because she knows it is the right thing to do,” Kerry added.

Nisha’s win of the Secretary of State’s International Women of Courage Award, which is given annually to women around the globe who exemplify “exceptional” courage in advocating for human rights, gender equality and social progress, follows two awards last year from the Asia LGBT Milestone Awards and international watchdog Human Rights Watch.

Another Malaysian who previously received the Secretary of State’s International Women of Courage Award in 2009 is prominent lawyer and human rights activist Datuk Ambiga Sreenevasan.
Nisha told Malay Mail Online that her receipt of the Secretary of State’s International Women of Courage Award was a recognition of trans people, pointing out that this was the first time a trans woman has won the award in its 10-year history since it was established in 2007.

“My hopes for the LGBT (lesbian, gay, bisexual and transgender) community in Malaysia is basically for the government to recognise and to accept and to acknowledge that we are a part of society,” she said.

“And at the same time, I hope that we will be protected, just as equal as other citizens. As a transgender woman, the only thing we ask for is our right to education, our right to employment, our right to every single thing that is for all citizens,” the Muslim activist added.

Nisha related how she was arrested at the age of 21 under Shariah law for dressing as a woman and jailed for three months at the Kajang prison in the men’s lock-up. She was also slashed and beaten with an iron rod last September in a purported hate crime.

“I faced verbal and sexual abuse in the prison by the inmates. It was a devastating moment for me. Till today, I cannot forget every single part of what happened to me,” she said.

The experience in prison had moved Nisha to fight for equal rights.

“I don't want any transgender woman to face what I faced in prison,” she said.

Justice for Sisters, the non-profit co-founded by Nisha which provides legal aid to transgender people, had assisted three Muslim trans women, who were convicted of cross-dressing, to mount a court challenge against a Negri Sembilan Shariah law that prohibits Muslim men from wearing women’s clothes.

The trans women won a landmark ruling at the Court of Appeal in 2014 that had declared the Shariah law unconstitutional and void for violating several fundamental liberties, but the Federal Court overturned the verdict last year on procedural grounds.