Critical Illness Singapore Worry

Critical Illness in Singapore: The Next War

In Singapore, we are safe from natural disasters and crimes. However, we are not spared from illness. Critical illness in Singapore is ranked #2 and indirectly #1 for the top worries for Singaporeans. This is because a critical illness might lead to an involuntary unemployment.

(Source: What worries Singaporeans, inequality and playing a part in policy development)

 

Critical Illness Singapore Worry

Critical Illness Singapore Worry

 

In 2016, we have DECLARED WAR not on a country but on Diabetes. I still remember the National Rally where the Prime Minster of Singapore talked about Diabetes. (Source: Parliament: Health Minister Gan Kim Yong declares ‘war on diabetes’). We are also aware that the war of the future will be a health crisis. (Just look at what COVID-19 did to cripple our economy)

The critical illness war will destroy our income source, rob our family funds and take away the reasonable lifestyle that you are having. For those that are slightly older, the war will erode your retirement funds and you might need to continue to work to pay for fund your treatment.

 

Critical Illness Singapore Reasons To Act Now

Critical Illness Singapore Reasons To Act Now

(Source: Be in the know about critical illness plans)

In my previous article, we talked about the change in the definition of critical illness that is coming soon on 26 Aug 2020. In this article, want to find out which critical illness most people are concerned of in Singapore.

 

This is a part of a 3 parts series article.

 

Cancer War

In Singapore, about 39 people are diagnosed with cancer every day, 15 people die of cancer every day, and 1 in 4 people may develop cancer in their lifetime. (Source: Common Types of Cancer, Singapore Cancer Society)

Putting things into perspective, a typical household in Singapore is 4 people. That would mean one of them will develop a cancer in their lifetime. Cancer remains the top cause of death here, with around one in three dying of it now (2015). (Source: Sharp rise in number diagnosed with cancer, Straits Times)

With the high probability, it is no wonder people are concern about the Cancer War.

Critical Illness Singapore Cancer

Critical Illness Singapore Cancer

 

Heart Attack and Stroke War

Every day, 17 people die from cardiovascular disease (heart diseases and stroke) in Singapore. Cardiovascular disease accounted for 29.2% of all deaths in 2018. This means that almost 1 out of 3 deaths in Singapore, is due to heart diseases or stroke. (Source: Singapore Heart Foundation)

It is the number 2 killer in Singapore after cancer. The risk factors are very common in Singapore. These includes high blood pressure, obesity, diabetes, too much stress, inactive lifestyle etc. Sounds familiar? (Source: Heart Attack: Healthhub SG)

Based on statistics from the Health Promotion Board in 2017, it seems like the occurrence will continue to go up.

Critical Illness Singapore Heart Attack

Critical Illness Singapore Heart Attack

 

C-War II

The ultimate horror is when cancer strike twice. With medical advancement, survival rates are also getting higher.

Over 35 years, the proportion of men who survive a cancer diagnosis by at least five years has gone up from 13.2 per cent in 1973 to 1977, to 48.5 per cent in 2008 to 2012. For the same period, women survivors more than doubled from 28 per cent to 57.1 per cent. (Source: More in Singapore getting cancer, but survival rates also up)

For people who have previously been diagnosed with cancer, this risk of getting another cancer is up to 30 per cent. And this risk continues to increase as they live – for patients who have undergone cancer treatments in the past, the longer the period after treatment has been completed, the higher the risk of developing another cancer. (Source: when two or more cancers strike)

Here is a real story of a person going through C-War II. “I didn’t need to go to the toilet; there was no urine at all,” says the 37-year old, who had to go for four-hour dialysis sessions three times a week from 2004 to 2008. (Source: It Changed My Life: One body blow after another, but he fights on)

 

What should you do?

The problem will still be there even if you don’t face it.

Firstly, check if you have adequate critical illness coverage. Follow up with your financial consultant or you can contact me if you don’t have one. Your coverage amount will be determined by your age, whether you have a family, number of dependents, etc.

Do it before 26 August 2020, After 26 August 2020, all critical illness policies in Singapore will have to follow the new definition as stated by the LIA.

Take Care and Stay Safe!

 

No one will care about your money as much as you do.

In Wealth Management, it is important to Pay yourself first. Beware of scams. Before you invest in any company or popular investment opportunity, be sure to do your own due diligence. If you wish to learn more about investment, I hope to nurture genuine relationships with all of my readers. Please feel free to contact me on my Instagram (@chengkokoh) or Facebook Page or my Telegram Channel! Or subscribe to our newsletter now!

Critical Illness Definition Changes Aug 2020

Critical Illness Definition Change Aug 2020: Should You get CI Coverage now?

Have you been thinking of getting a Critical Illness (CI) Coverage for a while but haven’t done so? In Wealth Management, insurance is one key element of planning and we have talked about Life Insurers to change definition of Critical Illness in 2019. In 3 months time, there will be new definition for critical illness coverage. Will it affect you? Should you get a CI coverage now?

Critical Illness Definition Changes Aug 2020

Critical Illness Definition Changes Aug 2020

 

What’s happening?

Like it or not, it is happening. Life Insurers in Singapore will have to comply with the new set of critical illness coverage as set by the Life Insurance Association (LIA). Previously, the definition of the 37 critical illness was standardized so that the coverage is consistent across the industry.

This review on the common definitions is to bring the definition up to date and aligned with advances made in medical technology and medical practice as well as to address areas of ambiguity based on insights gained from the past five years of experience.

(Source: LIA 2019 Framework)

 

What are the changes?

In total, 21 of the critical illness definition will be changed while 16 remains the same.

Critical Illness Definition Changes Aug 2020 Table

Critical Illness Definition Changes Aug 2020 Table

 

Does this mean it is harder to claim in future?

After looking at the definitions, I believe there are pros and cons to the new definitions.

Pros

  1. Those suffering from Thalassaemia Major or Haemophilia can now get covered under the HIV CI condition.
  2. Viral Encephalitis: Previously, viral infection has to be the cause for it. Now, scope is expanded to include all causes, not just viral infection.

Cons

  1. Stricter, more exclusions for Benign Brain Tumor, Coma, Stroke, Aplastic Anaemia, Heart Attack, and Major Cancers among other things.
  2. The addition of ‘irreversible‘ to deafness, blindness, aplastic anaemia.

 

Personally, I believe the cons outweighs the pros because the more major cancer, heart attack and stroke have a higher occurrence rate in Singapore. (Source: Top 10 Conditions for Hospitalisation In Singapore). See point 2, 4, 6, 9.

Critical Illness Definition Changes Aug 2020 Top Causes of Hospitalisation

Critical Illness Definition Changes Aug 2020 Top Causes of Hospitalisation

 

What should you do?

You have time. But, not long. After 26 August 2020, all critical illness policies in Singapore will have to follow the new definition as stated by the LIA.

Review your policies during these few months. Follow up with your financial consultant or you can contact me if you don’t have one.

Stay safe!

 

No one will care about your money as much as you do.

In Wealth Management, it is important to Pay yourself first. Beware of scams. Before you invest in any company or popular investment opportunity, be sure to do your own due diligence. If you wish to learn more about investment, I hope to nurture genuine relationships with all of my readers. Please feel free to contact me on my Instagram (@chengkokoh) or Facebook Page or my Telegram Channel! Or subscribe to our newsletter now!

How to prepare for an emergency. Emergency Funds

Is it too late? How do I prepare for an emergency?

How to prepare for an emergency

How to prepare for an emergency: Oh shit~

Many countries in the world have started with various attempts to separate humans from each other. It could come in the form of social distancing, working from home and quarantined. It seems like a global emergency is just around the corner and we are scrambling to prepare for this emergency. The Singapore government just announced a SGD$55B Resilience Budget package to help Singaporeans tie over this period.

 

Is it too late to prepare for this emergency?

From the Oxford dictionary, Emergencies are serious, unexpected, and often dangerous situation requiring immediate action. I feel the most defining thing about emergencies are that they are unexpected. Looking back, the reason why COVID-19 went out of control is that not many believe it to be serious and so it becomes unexpected.

While governments out there are trying their best to take care of their citizens, is there anything we can do during this emergency? And is it too late to prepare for this emergency?

 

Keep Calm and Prepare

Wealthdojo is a personal finance blog and so the suggestions will be finance related. We do understand that being mental strong and physically healthy is important in this period, but that’s an article for another day. It doesn’t matter where you start, it only matters that you start now. Here are some financial preparation that you can consider in this emergency.

  • Emergency Fund
How to prepare for an emergency. Emergency Funds

How to prepare for an emergency. Emergency Funds

This is the bedrock of your financial planning. When your income source stops (in normal days, it could be a lost of job), bills will continue to pile up. You will still need to eat, have a roof to stay and also feed your dependents. COVID-19 has pressed the pause button for millions of people in the world. Look at Singapore Airlines, senior management pay cut by 10-15%; staff offered voluntary no-pay leave. This would mean that the employees income source will take a pause for this period of time. If they do not have an emergency fund, how will they be able to continue to feel themselves in the months to come?

Solution: Have an emergency fund of between 6 to 9 months of your expenses.

This will ensure you can continue to live your life while waiting for the situation to be better. (Read more: Life Hedge: How to prevent your life from being a roller-coaster (Part 1))

 

  • Insurance
How to prepare for an emergency. Insurance

How to prepare for an emergency. Insurance

Call me bias but this is the most important time to review your insurance portfolio. Insurance takes care of medical conditions that are often unexpected (who can predict that they will have an heart attack) and serious. COVID-19 just serves as a reminder that health is the most important asset that we will ever have and COVID-19 is just one illness out of the whole repertoire of potential illness. Why are we resisting on planning for the other illness when they will rob us our ability to earn in the years to come?

Solution: Review your insurance portfolio

This will ensure you can continue to live your life while recovering from your illness. (Read more: Life Hedge: How to prevent your life from being a roller-coaster (Part 2))

 

  • Learn new things

There are so much information out there and I can never say that I truly know everything. In the midst of a crisis, the most important thing is to learn or even relearn certain things. It could be range from things like “how to maintain your relationship with your neighbor” to “gardening”. For Wealthdojo, we believe in continuous learning and reading. We have specially prepared 2 things for you to learn and explore new things during this COVID-19 period.

Solution3 recommended books to read and CPF Optimization and Opportunity Webinar

We will be having our first ever CPF Webinar on 23April2020. Do join us to learn more on what you can do with your CPF in the next webinar.

CPF Optimization and Opportunity - Launch 1

CPF Optimization and Opportunity – First ever webinar

 

  • Watchlist

The last one is dedicated to all the investors out there. It is bargain season in the stock market now. Many companies are now priced at historically low levels. However, if you don’t have a game plan on what to buy and what price to buy, be prepared to let opportunities slipped away from your hands.

 

Wishing you the best in this period of time. We hope that everyone can remain calm and healthy during this season. It is a season of crisis but it is also a season of opportunity. Invest with what you have and don’t borrow money to invest in this period of time. If you are new to investing and need help, do talk to me using the contact form or any methods listed below.

God Bless.

If you read until here, thank you again for your patience and your support over in 2019. I hope that in 2020, Wealthdojo can continue to value add you. Let us know what you think in the comments below. This is a working article. The above doesn’t represent my stock recommendation in anyway. Please read our disclaimer for more information.

I hope to nurture genuine relationships with all of my readers. Please feel free to contact me on my Instagram (@chengkokoh) or Facebook Page or my Telegram Channel! Or subscribe to our newsletter now!

 



 

Life Hedge How to prevent your life from being a roller coaster

Life Hedge: How to prevent your life from being a roller-coaster (Part 2)

In the previous post on Life Hedge: how to prevent your life from being a roller-coaster, we talked about investing hedge and how you can use various tools to hedge on your investing portfolio specially during times of the recent coronavirus. In this article, we will talk about something more personal and how to prevent our lives from being a roller-coaster.

Life Hedge How to prevent your life from being a roller coaster

Life Hedge: How to prevent your life from being a roller coaster

Look around you, there are many things in life that we can be grateful for. Just by having a roof over your head, you are richer than 75% of the world. (Source: Elephantjournal). If you are reading this article, it probably means you have assess to the internet, a phone, a laptop, an electricity source and money. Despite that, most of us might feel that life is not enough and demand more of it.

The question that we can ask ourselves is this. Why are we demanding for more even though we know we have enough? This reminds me of a story of The Golden Egg which I will replicate below.

 

Story of The Golden Egg

Once upon a time, there lived a cloth merchant in a village with his wife and two children. They were indeed quite well-off. They had a beautiful hen which laid an egg every day. It was not an ordinary egg, rather, a golden egg. But the man was not satisfied with what he used to get daily. He was a get rich-trice kind of a person.

The man wanted to get all the golden eggs from his hen at one single go. So, one day he thought hard and at last clicked upon a plan. He decided to kill the hen and get all the eggs together.

So, the next day when the hen laid a golden egg, the man caught hold of it, took a sharp knife, chopped off its neck and cut its body open. There was nothing but blood all around & no trace of any egg at all. He was highly grieved because now he would not get even one single egg.

His life was going on smoothly with one egg a day but now, he himself made his life miserable. The outcome of his greed was that he started becoming poorer & poorer day by day and ultimately became a pauper. How jinxed and how much foolish he was.

Life Hedge Golden Egg

Life Hedge: Why do we want more Golden Eggs

 

Why do we kill the Golden Goose?

Logically, it don’t make sense to kill something that is good wealth source to us. However, emotionally we want it FASTER and in our journey of doing so, we kill the golden goose.

This primary emotion that we associated commonly is called Greed. However, I believe there could be deeper reasons. I believe that is the reason why many people fall into simple scams, empty promises or bad health (See more: Regrets).

For some, they feel their life is about acquisition and no longer as a means of satisfying their material need. They want to have more than their peers to feel a sense of superiority. For some, they want to have more because they do not have enough when they were young and they fear it will happen to them again. For some, they feel that by buying things they can fills an emotional void in their hearts such as a lack of affection at home. The list could go on and on but it is rooted to the same cause: an emotional void. By understanding, what cause our emotional void can then we protect ourselves from ourselves (read that again :p).

 

Protecting our Golden Goose

Life Hedge Protecting the Golden Goose

Life Hedge: Protecting the Golden Goose

To prevent your life from being a roller-coaster, there are some hedges that we MUST put in place so that life will not change so drastically. In a certain sense, we are the golden goose and the ultimate treasure/asset that we have to protect. We hope that by sharing the two life hedges, you can live a life of abundance and laughter.

 

  • Discover the emotional void

I can say with confidence that many people live their lives without truly understanding about themselves. When we are young, some of us are force to go through education and we are constantly chasing for academical success. It seems like the success in life was to have good academical results. Then we come into the workforce and we are constantly chasing for material success. It seems that the success in life now is linked to our net worth. We constantly seek what the society wants from us and because of that, we might develop some sort of emotional void.

Spending some time with ourselves and asking ourselves deeper question is the start for us to discover the emotional void that we might have. For some, it is certainty. For others, it might be love and connection. I have listed 6 potential voids which people are looking for in their life.

The 6 voids are. “Lack of certainty”, “Lack of variety”, “Lack of love and connection”, “Lack of significance”, “Lack of growth” and the “Lack of contribution”. If this seems familiar, Tony Robbins, an American Author coined the above the 6 human needs. (Read more: 6 Human Needs) . Can you relate to them?

 

  • Maintain the Golden Goose

To have good quality eggs, I can only assume the body of the golden goose have to be strong. Just like ourselves, we need to work and maintain our body by exercising and also eating well. Take reference to the first Singapore’s Prime Minister, even well into his 80s, Mr Lee stuck to a strict exercise routine – 12 minutes walking on the treadmill every morning, 15 minutes after lunch, and another 15 minutes after dinner.

“Without that, I would not be in my present condition physically,” he had said.

Source: Straits Times: Staying fit anywhere, in any way

 

  • Income Hedge/Insurance

Even if we do the above, an illness might still strike us. In an event of major critical illness, we might need to use our life savings to spend on our treatments or new lifestyle. Some treatments could be life-long and we might be forced to sell away our homes to fund those new treatments.

At the same time, we might not be able to work at the same capability after an illness. This would mean that our income might not be as high as before and this will result in a lower standard of living in future.

Is your income hedged after you stopped working?

 

Wishing you the best in this period of time. We hope that everyone can remain calm and healthy during this season. It is a season of crisis but it is also a season of opportunity. Invest with what you have and don’t borrow money to invest in this period of time. If you are new to investing and need help, do talk to me using the contact form or any methods listed below.

God Bless.

If you read until here, thank you again for your patience and your support over in 2019. I hope that in 2020, Wealthdojo can continue to value add you. Let us know what you think in the comments below. This is a working article. The above doesn’t represent my stock recommendation in anyway. Please read our disclaimer for more information.

I hope to nurture genuine relationships with all of my readers. Please feel free to contact me on my Instagram (@chengkokoh) or Facebook Page or my Telegram Channel! Or subscribe to our newsletter now!

 



 

How Not to get your insurance claim rejected disclosure

How not to get your insurance claim rejected

How not to get your insurance claim rejected. It is very common for people to buy insurance in Singapore especially in the recent years. This is because the level of financial literary has risen over the years in Singapore (Wealthdojo wants to be part of this movement). As more insurance are being bought, there are definitely more claims to be made (a simple law of large numbers). If everything is done well, how is it possible that your insurance claim is rejected? We hear many stories claiming that they are unable to claim from their insurance. These people are usually angry and when asked about the details of the claim, remain strangely silent on it. I feel that this has led to some distrust to insurance companies. These are some of the common comments I hear when it comes to claiming from insurance.

“I heard from my father’s friend that he couldn’t claim when he was hospitalised”

“My friend tried to claim from his plan. After buying, the consultant said he cannot claim from this plan”

Seeking to understand where they are coming from, I personally asked them about their situation. Finally, I realised that there are 3 secrets to not get your insurance claims rejected. (Secret #3 will blow your mind)  

3 Secrets to not get your insurance claims rejected

  I did a poll on instagram to see if there would be people out there will be interested in this topic (Screenshot below). They have this fear because of one reason and that is they have never claim before. They will not be sure if a particular situation is claimable or not. For experience financial consultants (Bespoke Financial Planner), we see claims regularly. On average, I do between 2 to 4 claims a week for my clients. Today, I want to share with you the 3 secrets to not get your insurance claims rejected.
How Not to get your insurance claim rejected

How Not to get your insurance claim rejected

Secret #1: Don’t listen to the plumper for investing advice

Each of us have different specialties. We hone our skills over time to be competent in that one thing. As a result, we get a salary from companies who pays us for providing services to their companies. This also explains why when there is a disruption in the economy, people who lose their jobs find it hard to find another job (think about the amount of taxi drivers who will lose their jobs if autonomous driving kicks in). The point I’m driving here is to get advice from those that are experts in it. Will you get advice on how to cook chicken rice from a vegetarian store owner? Will you get advice on which surgery to go for from a teacher? Then why will you get advice on insurance claims from a coffeeshop uncle or auntie? While a teacher may have some experience in surgery, a vegetarian store owner may had chicken before, the uncle may have some claims done before, they are not the experts in that particular craft. Seek advice about claims (especially if there is upcoming surgery) from a professional financial consultant (Feel free to contact us) who have done numerous claims to help you assess better.

Secret #2: Going for an annual financial review

How Not to get your insurance claim rejected financial review

How Not to get your insurance claim rejected: Financial review

After speaking to the father’s friend (as mentioned above), I realised that he has not met any financial consultant for the last 10 years (we will not be talked about why he refused to meet anyone in this article). Indeed, he was not able to claim a cent from hospitalization stay and that is because he didn’t had one. Yes. You read that correctly. He didn’t have one. Over the years, he had 10 accident plans bought over the phone from various banks. He was convinced he was insured adequately. Unfortunately, he wasn’t. Over the years, we may forget what plans we might have. The last time you saw your policy contract was probably the first time you bought the insurance. (Are you one of those who have not remove your policy from the envelope it was sent in? =p) Going for an annual financial review not only keep you reminded on your existing plans, it keeps you abreast on the latest changes that will affect you. (Read More: Life Insurers to change definition of Critical Illness)

Secret #3: Proper Disclosure

“Will XXX company find out if I have done regular breast check ups with a specialist?”

“I don’t want to get an exclusion. Can you help me answer “no” in the underwriting form?”

These questions sends shivers down my spine when a prospect look me into my eye and say it. Every year, numerous life and health insurance claims are rejected on various grounds with material non-disclosure of facts pertaining to an individual’s health being the key reason for claim rejection. One of the easiest way to get your claims rejected is to not state the truth in your underwriting.
How Not to get your insurance claim rejected disclosure

How Not to get your insurance claim rejected: Disclosure

Most people underestimate the insurer investigation capability during claims. The claim can be rejected if a “non-disclosure” or “misstatement” of fact is discovered. In simpler words, it means if you “did not state” a given fact or “provide inaccurate facts” that will affect the policy approval, the claims can be rejected. Financial Consultants is NOT HELPING YOU when he is helping you hide these facts. He/She just merely pushing the problem in the future when there is a claim.  

Conclusion: We all want a happy claim experience

We buy insurance to insure ourselves against unforeseen circumstances. In those time, we will need the money the most. We want the claims experience to be fast and smooth. Nevertheless, I will pray that your health is good and not use the insurance. In Wealthdojo, we strongly encourage you to talk to your Insurance Financial Planner once a year for a review so that your protection needs can be taken care of adequately. (Click here to contact us to help you with your Insurance Financial Planning). We believe in bespoke financial planning. Whether it is money maximization, insurance or investing, we believe that everyone is different and the planning should be suited for you. All opinions above are my own. Please view our disclaimer page to understand more. I hope to nurture genuine relationships with all of my readers. Please feel free to contact me on my Instagram (@chengkokoh) or Facebook Page! Now that you’ve read about learnt about how to benefit from What you can do about price hikes for public transport in Singapore. I challenge you to read this article (Careshield Life: Disability Insurance Singapore )to push your understanding further!

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