The Karen Tang Money Podcast

Some people say “buy term and invest the rest”. How true is this? To put it simply, term insurance is pure insurance, without any cash value whereas whole life insurance accumulates a cash value. Due to this, the term insurance premium per year is usually much lesser than whole life premiums for the same coverage amount. Some clients like this lower premium of term plans, but others see whole life plans as a way of having the discipline of setting aside some money to create an asset for their later years. A concern with term life policies is that it only covers you for a fixed number of years, typically ending by age 70. A key benefit of a whole life plan is that it is a permanent life insurance policy. It is meant to provide you with a lifetime of protection and premiums are fixed, with the exception of Critical Illness premiums. It does not expire after a specific number of years, and it cannot be canceled due to ill health. Besides this, the guaranteed cash value accumulated in whole life plans can also attract a non-guaranteed gain based on financial market performance. Some clients find this way of growing their money safer than investing it themselves. In summary, “buy term and invest the rest” is only for those who are savvy in managing their own investments WHILE accepting the risk of being uninsured in their retirement years. For the rest of us, whole life plans make a lot of sense. At the end of the day, your decision should be based on YOUR individual needs, preferences, and affordability. If you have not done a review of your financial plan in the past year, now is the perfect time to do so! Do share and subscribe to the podcast if you feel it has empowered you. Also, kindly take a moment to leave a review below. Feel free to share with me the key lessons that you have learned in your personal financial planning journey. If you wish to work with me to develop your financial security plan, call me now on +65 6252 8500 to schedule an appointment. Connect With Me:- Website: https://karentang.sg/ Youtube: https://bit.ly/2MaXvwG Linkedin: https://www.linkedin.com/in/karencfp/?originalSubdomain=sg Instagram: https://www.instagram.com/karentangsg/ Facebook: https://www.facebook.com/karentangsg Twitter: https://twitter.com/karentangsg Mail: karen@karentang.sg Do note: Any financial or investment information in this podcast/video is for use in Singapore only and is intended to be for your general information. Any particular investment or decision should only be made after consulting with a fully qualified financial adviser. See www.karentang.sg/privacy-policy/ for privacy information.

Dealing with a critical illness is not always a one-time event. Statistics show that: - Stage 3B breast cancer patients face a 70% to 90% chance of recurrence in 10 years. - 4 in 10 stroke patients will suffer another stroke within the next 10 years. - 8 out of 10 colorectal cancer patients who suffer a recurrence develop cancer that involves the liver. It is never easy coping with a recurrent life-threatening condition. It brings on yet another round of challenges - physically, emotionally, and financially. The good news is having a sound critical illness insurance plan(s) is half the battle won! A good multiple pays critical illness plan gives you financial security, allowing you to make multiple claims for different stages of critical illnesses - early, intermediate and severe - as well as specified re-diagnosed and recurrent critical illnesses. This is especially crucial for breadwinners or key contributors of the household, as it helps to replace any income loss when diagnosed with an illness. A competitive plan will also provide you with additional benefits for even greater protection and peace of mind. However, not all multiple pay critical illness plans are the same. If you wish to review your critical illness protection or are interested to learn how a multiple pay critical illness cover fits into your financial plan, call me today to set up an appointment. Do share and subscribe to the podcast if you feel it has empowered you. Also, kindly take a moment to leave a review below. Feel free to share with me the key lessons that you have learned in your personal financial planning journey. If you wish to work with me to develop your financial security plan, call me now on +65 6252 8500 to schedule an appointment. Connect With Me:- Website: https://karentang.sg/ Youtube: https://bit.ly/2MaXvwG Linkedin: https://www.linkedin.com/in/karencfp/?originalSubdomain=sg Instagram: https://www.instagram.com/karentangsg/ Facebook: https://www.facebook.com/karentangsg Twitter: https://twitter.com/karentangsg Mail: karen@karentang.sg Do note: Any financial or investment information in this podcast/video is for use in Singapore only and is intended to be for your general information. Any particular investment or decision should only be made after consulting with a fully qualified financial adviser. See www.karentang.sg/privacy-policy/ for privacy information.

In this episode, I will share with you how you can determine the amount of critical illness protection you need. The payout from critical illness (CI) insurance not only allows you to seek better medical care and treatment options, it also supports your ongoing and additional living expenses. A critical illness diagnosis will inevitably affect your ability to work, resulting in a loss of income. Hence, critical illness insurance also serves as your income replacement. It is vital that everyone has adequate critical illness protection. It is especially important when you are a breadwinner, a working professional with parents to support, and parents with young dependents. Having adequate protection means peace of mind as you focus on recuperating without worrying about money. So, how much of critical illness coverage do you need? Advances in medicine are increasing the survival rates of those diagnosed with major illnesses. This also means that treatment for certain illnesses may last for several years. A CI recovery period of up to 5 years can be expected before you can resume full-time employment. This means that you would need an estimated 3.9X of your annual income to have adequate protection (source: LIA Singapore). However, if affordability is not an issue, I would suggest that you get protection for up to 5X your income, taking into account inflation as well. Do share and subscribe to the podcast if you feel it has empowered you. Also, kindly take a moment to leave a review below. Feel free to share with me the key lessons that you have learned in your personal financial planning journey. If you wish to work with me to develop your financial security plan, call me now on +65 6252 8500 to schedule an appointment. Connect With Me:- Website: https://karentang.sg/ Youtube: https://bit.ly/2MaXvwG Linkedin: https://www.linkedin.com/in/karencfp/?originalSubdomain=sg Instagram: https://www.instagram.com/karentangsg/ Facebook: https://www.facebook.com/karentangsg Twitter: https://twitter.com/karentangsg Mail: karen@karentang.sg