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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Early stage critical illness insurance worries

Why do you need early stage critical illness insurance in Singapore?

Why do you need early stage critical illness coverage in Singapore?

Generally, critical illness insurance typically pays a lump sum in an event of a diagnosis of the critical illness. This amount of money is typically used to replace a person’s income and sustain their lifestyle. This is because it will not be easy to work straightaway after suffering from a critical illness.

One of my client recently asked me this question.

“Do I need an early stage critical illness since I have a critical illness insurance already?”

To answer this, we first have to ask ourselves this question.

 

What is early stage critical illness?

An early stage critical illness (to put simply) is an illness that is discovered at the very beginning. I will be giving 2 examples that are common in Singapore.

Why do you need early stage critical illness insurance in Singapore.

Why do you need early stage critical illness insurance in Singapore.

While it is true that an early stage critical illness is “less serious” that a major stage critical illness, a person might also need to be away from work for a short period of time (probably a year). This will lead to the second question.

Why do I need an early stage critical illness coverage?

While we take time away from work to recover to be well again, our lifestyle still carry on. Our utilities bills, our mobile bills, our daily commute and our daily food consumption still continues. The sudden lost of income from resting may start to DIG HEAVILY into your savings (that is meant for retirement). Worrying about money usually creates more stress and it may kill you more than the illness itself.

Early stage critical illness insurance worries

Early stage critical illness insurance worries

How much early stage critical illness coverage should I need?

Everyone is different. For Wealthdojo readers, we recommend your early stage critical illness coverage to be at least 1 year of your annual income. This means that if you are earning $100,000 a year, a recommended coverage you should have is at least $100,000. Premiums for early stage critical illness is usually higher as compared to the other protection plans in the market. This coverage was made popular in 2010 (The New Paper. 31 August 2010. She has 3 policies but no coverage) after a lady was unable to claim from her critical illness coverage even though she was paying high premiums ($600/month). Those were the times early stage critical illness coverage was not widely available.

Nowadays, insurance companies covers for early stage critical illness.

Early stage critical illness insurance claims

Early stage critical illness insurance claims. Source: The New Paper. 31 August 2010

While critical illness definition has been standardized in Singapore (Read: Life Insurers to change definition of Critical Illness), there is no standardized definition for early critical illness.

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!

Learn more by following us

Don't be shy. Just say hi.
Price Hikes Public Transportation Singapore Budget

What you can do about price hikes for public transport in Singapore

Price hikes for public transportation in Singapore is set to increase. This will include the buses and trains fares that majority of Singapore takes every day to work or school. The public transport counsel has hinted the fares could go up by 7% after they have conducted their fare review exercise. (Read More: Fare Exercise Review)

The reasons cited for the rates increase has been put on the increase in energy prices, rail reliability and also introduction of new buses and MRT over the last few years.  This isn’t a shock to me at least. Over the years, fare price hikes has been slowly increasing. (Read more: Public Transport Counsel Chronology). As a nation progress, there will be need for a more reliable public transportation and this will result in higher cost of maintenance over time.

Price Hikes Public Transportation Singapore

Price Hikes Public Transportation Singapore: Source: Straits Times

For majority of us, the amount of money we spend on public transportation will soon increase in December 2019. We can either lament all we want about the $0.09 increase per journey or we always do something about it. (Read More: Sandwich Generation: Is it still possible to be rich?)

 

Money Maximization: Transportation

Readers of Wealthdojo are in luck. We were just exploring on ways to save on transportation in the previous article. (Read more: Save Money on Transportation Singapore). 

We have created a system to help an individual save up to 5% a year on transportation cost. This comes in timely as it can “cancel out” the effect of increase just by following this system.

Price Hikes Public Transportation Singapore Budget

Price Hikes Public Transportation Singapore Budget

If you can’t beat them, join them

I’m always excited about companies that are able to increase their prices even during a recession. While we are somewhat in a economy that is slowing down, there are a few companies that are STILL ABLE to raise prices and people have no choice but to pay for it! This is what we called Pricing Power. Investing in companies with pricing power are the ones that can survive and thrive. As Wealthdojo believes in dealing with real life situations, please refer to our disclaimer section for more information.

Everyone in Singapore probably knows of this company called SBS Transit (SGX: S61)

SBS Transit Stock Price ComfortDelGro

SBS Transit Stock Price ComfortDelGro

Basically, they are our train and bus providers in Singapore. Over the last 1 year, this humble share has increase 57%. I have talked about in our Facebook Closed Group (Contact Us to be invited to the Facebook Group). It is a simple business, easy to understand and has a certain pricing power in Singapore. Just to point out an illustration, will you walk all the way to Changi Airport by foot just because your bus fare has increase by $0.09? 99.99% will definitely continue using this service.

In addition to the 57% increase this year, the dividend yield is at 3.52% right now. While it isn’t the highest yielding dividend stock out there, this is clear about our inflation rate this year.

I recommend everyone to study more into this stock before making a decision. This is not a buy/sell recommendation.

We wish you the best in your financial journey.

 

In Wealthdojo, 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 (Things To Consider Before Investing In Foreign Dividend Stocks )to push your understanding further!

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How Can You Stop Buying Shit You Don't Need

How Can You Stop Buying Shit You Don’t Need?

How Can You Stop Buying Shit You Don’t Need?

Have you ever gone out for a meal only to head home with a gazillion paper bags hanging off your arm? Oh No!! That feeling is terrible. But How Can You Stop Buying Shit You Don’t Need?

(This article is written by a recent graduate from NTU, Karissa Sim who is recording down her financial journey)

Being a recent rat in the rat race, I have just started getting my new “monthly allowance”. And like every other person who suddenly “come into money”, all I want to do when I’m out is to spend it all on things I didn’t bear to before (Consider Reading How To Track Your Expenses? ). From classy restaurants to Lush and boutiques, and spending hours on online shopping just adding things to my cart, the only thing left at the end of the day is an ever decreasing balance in my bank account and me wondering whatever happened.

How Can You Stop Buying Shit You Don't Need

How Can You Stop Buying Shit You Don’t Need. Damn.

 

WHY AM I SUCH A SPENDTHRIFT?

Our subconscious has an incredible way of leading us by the nose to make the most redundant of purchases. Affectionately nicknamed System 1 by Professor Daniel Kahneman in his bestseller, “Thinking, Fast and Slow”, it refers to the fast, automatic and emotional thinking processes that often results in relying on illogical impressions, feelings and inclination for decisions. On the other hand, each individual also has a System 2, referring to the slow, deliberate and systematic thinking processes that evaluates our options rationally and logically.

“System 1 continuously generates suggestions for System 2: impressions, intuitions, intentions, and feelings. If endorsed by System 2, impressions and intuitions turn into beliefs, and impulses turn into voluntary actions. When all goes smoothly, which is most of the time, System 2 adopts the suggestions of System 1 with little or no modification.”

― Daniel Kahneman, Thinking, Fast and Slow

Confusing examples, I know. System 1 is the part of you that looks at that 50% off everything in store sign and desperately want to run in and throw everything remotely appealing to you into the basket and swipe that card. System 2 is the part of you that asks yourself if you are even interested in what that shop to offer, and if yes, whether the items you’re picking up is something nice, needed, and worth its price tag. Our system 1 is always sending alarm bells to us and made worse because of influencers.

 

WHAT ARE INFLUENCERS DOING TO US?

 

How Can You Stop Buying Shit You Don't Need Beautiful Girl

Nothing against you. I wanted a photo of a beautiful girl in my blog. 

In today’s world, we are not only exposed to TV or online commercials, but we also place ourselves in range of being influenced by a group of people we call “Influencers”. These people are experts at appealing to our System 1 by targeting our mental rule of thumb (i.e. heuristics) or our cognitive biases.

Why do we trust what these influencers say? Because they are also people. We trust other people more than trusting brands and marketers. Furthermore, since many others are also following them, they should also be that much better at adulting than we are, aren’t they? This is the halo effect, especially since we view them positively as a person, we trust that their decisions would also be good. Forbes magazine also once reported that “data from influencer marketing platform MuseFind shows that 92% of consumers trust an influencer more than an advertisement or traditional celebrity endorsement.”

“Indeed, there is evidence that people are more likely to be influenced by empty persuasive messages, such as commercials, when they are tired and depleted.”

― Daniel Kahneman, Thinking, Fast and Slow

As the cherry on top, influencers leverage on the framing effect, as different wordings, settings and situations would affect our decision making differently – from emotional appeals to social pressure and more. An interesting example would be the fat loss gummies that rocked social media world in 2017, shortly after 28-day detox teas was given the same treatment by not just influencers, but celebrities worldwide. These teas did not work as well as advertised for majority of the users, but many still bought it at an inflated price because they trusted the influencers and their opinions. Interestingly, people forgot that these influencers looked as great before and after they “consumed” the tea.

 

SO WHY DO WE BUY SO MUCH NONSENSE?

 

Let’s contrast our thinking processes of System 1 with our System 2. In our great grandparents’ age, it was commonly believed that consumers are rational with their purchasing decisions – a feat only possible if they have all the information available in the marketplace. Today, the marketplace is so saturated with choices – the sheer number of choices with varying qualities and prices – that it is impossible for one to make the best economic decisions.

Unfortunately, there is no hard and fast rule to making the best economic decisions, not just when making consumerist purchases, but also when deciding what exactly to do with your money. How much should you spend in a month? What proportion of your monthly income should you invest? What about insurance? Savings? (Consider Reading this: Sandwich Generation: Is it still possible to be rich? and Insurance for investors and Money Maximization: REV©)

The answers to these questions and more can be answered in our monthly seminars. Why stop at spending less? Start working on meeting your future goals of owning that condo or that beautiful Mercedes.  (Consider Reading This: How can we be rich and succeed in the financial world?).

It is time to start understanding.

We hope this website will be one to let you be rich and succeed in the financial world. If you would like to start your financial journey today. Subscribe to us (yourwealthdojo) to learn how you can move through your financial journey together.

Thank you Karissa for sharing your own personal journey.

Naruto Run Area

How to Naruto Run To Financial Freedom

What is a Naruto Run and how is it related to Financial Freedom? What we are running to?

Naruto Run Area

Naruto Run

Recently, there is a big joke in the USA as there is now a whopping 1.7million people who have signed up to “storm Area 51” Facebook event. The event, which is called ‘Storm Area 51, They Can’t Stop All of Us’, was seemingly created as a joke. However, it has got so serious such that the US Air Force has issued a stark warning to anyone thinking of trying to gain unauthorised access to the base. (Read more: Naruto Run Area 51)

This sentence was what made it famous.

‘If we naruto run, we can move faster than their bullets. Lets see them aliens.’

For those of you thinking of what is a naruto run? You have come to the right place. A Naruto run is a style of running in which person or character runs leaning forward with their arms stretched out behind them. For those that need some visual image, look at the gif below.

Naruto Run Area

Naruto Run

Not the most important of information. In this article, we want to find out how we can Naruto run our way to financial freedom. Have you ever pondered about this question before?

“Why are some people rich and how did they become rich at a young age?”

How is it possible for people that young to be rich? This question comes out a lot for people who are in their 40s or 50s. They have worked hard for a HUGE part of their life but are not rich yet. Just how is it possible for  people who in their 30s become richer faster than them! This also puzzles me UNTIL I met people who are became Millionaires in their 30s. These are ordinary Singaporeans who also serve the same NS, buy the same HDB, and also get married (Read More: Sandwich Generation: Is it still possible to be rich?). I had a rare opportunity to interview these people and what they shared with me changed my life forever. To my surprise, I realised that there are many similarities on how they naruto run themselves into Financial Freedom. Today, we will look at 3 similarities strategies that majority of them used to reach their Financial Freedom.

  • Learn a high paying skill set

Let’s face it. To make money from assets, we first need to have money. In our initial working years, majority of us won’t have a lot of money to invest. Imagine you have a chance of a lifetime to make 1000% from the stock market, would you want to have $10,000 or $100?

$100,000 -> After 1000% -> $1,000,000
$1,000     -> After 1000% -> $10,000

See the difference?

For young people, the capital that we have will be limited. As a result, there might be tons of opportunities that we might be missing out if we don’t have money. Instead of lamenting on the fact that we don’t have money, successful people they learn a high paying skill SO THAT they can get more money to invest WHEN THE TIME COMES. To find a high paying skill set, we need to first understand what the market needs NOW. You can always get this information from LinkedIn (Read more: Tops Skills 2019). Some of the skills sets are evergreen, like Sales Leadership, Marketing and customer service.

There are many skills to learn. Choose one and get very good at it.

  • Maximise the available tools you have in your disposal 

Multiplier accounts (Read More: Money Maximization: REV©), Fixed Deposits, Bonds, CPF (Read More: Make The Most Of Your CPF). There are many tools that we are exposed to. But, it is still under utilized by many people! These are simple things that we can do to help us maximise the amount of money in our bank accounts especially when there is minimum fee or commission involved in these accounts. Successful people maximises what they have with what they have. Every cents counts.

I have a client who was not maximizing his bank accounts in Singapore. After, I share the REV strategy with him, his banking interest INCREASED by 600%

Before REV: $1400 interest per year
After REV: $10,000 interest per year

After sharing with many people, I realised that most Singaporeans will be able to get around $150 to $300 a month just using this strategy. These are just extra cash to be obtained if you put in that extra effort.

  • Learn Investing
Preparation is half the battle won

Preparation is half the battle won

In a recent survey (Read more: Most Singaporeans behind on retirement plans, many unsure how to grow wealth), 1 out of 3 Singaporeans is not investing. My question in my previous article is that are the 2 Singaporeans investing properly?

Most people that I met do some level of “investing” but when questioned deeper, I realised that many of these people “gamble” instead. So, how do you identify if you are gambling or investing? Ask yourself these questions

  1. Do you know what kind of business are you investing in?
  2. Do you know how this business collect revenue?
  3. What kind of risk are you taking when putting your money here?

If you are unable to answer those question confidently, you might be gambling with your money.

I realised that successful people who became rich actually spend money to learn how to invest. It is like a springboard to jump even higher. Yes. It will cost money. Yes it will cost time. Yes. It will take effort. It is like everything else. If you want to be good at something, it will definitely cost money, time and also effort. Why else would you want to risk your hard earn money.

In summary, we hope that everyone can naruto run their way to financial freedom.

Here, at wealthdojo, our vision is to be the platform for everyone to become enlightened in their financial decision so that they can become financially free. Our tagline: Your black belt to financial freedom. We hope this website will be one to let you be rich and also succeed in the financial world.

If you would like to start your financial journey today. Subscribe to us to learn how you can move through your financial journey together.