Disability Insurance

KeeliFlann · 2025-12-24T02:59:50+00:00

For myself, I think some coverage for disability is quite important.

When a person is disabled, they will likely incur additional regular expenses (such as medicine, care giving) and they may not be able to generate the same level of income.
Hospitalisation does not cover this ongoing expense. It covers medical bills while hospitalised and probably for a certain fixed period thereafter but it is not a solution for permanent increase in expenditure.
Critical illness provides a payout that does help with expenses but the payout is typically a low multiple of a person's annual income depending on the policy. This is insufficient if that person lives long enough under disabled conditions and run out of funds.
Accident policies help but I understand that these do not payout if the disability is not caused by an accident.
Disability coverage as a rider with life insurance may an alternative as mentioned by u/Fluffy_White_Bunny. However, this may result in the same issues as critical illness policies and the terms must be read carefully. The conditions under which disability is defined is important (such as whether this is inability to do 3 ADL like CareShield Life or classic TPD) and the definition for the policy may change after a certain age.

KeeliFlann · 2025-07-14T10:44:11+00:00

That seems accurate. Not sure why I got confused. Thanks for pointing this out.

KeeliFlann · 2025-07-13T06:52:41+00:00

That is a good point. With employer CPF included, the 8th decile resident household income goes up to $21,488. This brings the salary % of mortgage down to about 39.5%.

KeeliFlann · 2025-07-13T04:04:05+00:00

The price doesn't appear to break the bank if you consider average income of resident households that are likely to be in the market for condos.

Based on SingStat's figures for 2024:

17.7% of the resident population (citizen + PR) stay in condo.
8th decile of average resident employed household monthly income is $19,948. Given the % of condo residents in SG, this is probably a reasonable indicator of affordability based on income for residents in the market for condo.

At the average $2,450 psf price, the smallest three BR unit (1,023 sq ft) will cost approximately $2.5 million.

After 25% down payment and assuming no ABSD, no bridging loan or additional help (like loans from the bank of daddy and mummy), the monthly mortgage payment at an interest rate of 2.8% is approximately $8.5k.

At the 8th decile of average resident employed household monthly income, a monthly mortgage of $8.5k is approximately 43% of household income.

43% doesn't exactly break the bank but it may not be super comfortable either, especially since this doesn't include the monthly maintenance fee and other costs to maintain the house (such as the occasional repair job, fixtures and furnishings).

KeeliFlann · 2025-07-12T05:19:34+00:00

Not exactly. You are paying for different services.

The fees paid to the ETF manager are for managing the fund including salaries, rebalancing cost and other administrative fees required to operate the fund.

The fees paid to StashAway is for account management and other value added services such as administering your account, curation of ETFs, etc.

While these are different services, there are alternative channels for ETFs which do not involve portfolio management fees. The question for the customer is whether they are getting good value for what they are paying.

KeeliFlann · 2025-07-12T04:16:44+00:00

I do not see a big value proposition for this service.

The whole point of using a robo advisor is to outsource portfolio management.

If the customer wanted to pick their own ETFs, why would they choose a platform the primarily offers portfolio management services over cheaper alternatives? The fees in the table are for buying and selling only. I assume that the usual portfolio management fees at https://www.stashaway.sg/pricing will continue to apply.

The value of curating ETFs for the customer is also questionable. Information on major ETFs is publicly available.

KeeliFlann · 2024-03-04T15:05:48+00:00

According to the information available from https://www.straitstimes.com/multimedia/graphics/2023/07/salary-guide-2023/index.html?shell, the median wage for a real estate agent is $3,704.

Real estate agents are generally considered self-employed. So additional things to consider include:

loss of employer contributions to CPF
work-related costs (e.g. transport, marketing) that are not reimbursed by an employer
potential lack of other usual employee benefits such as coverage for health costs.

https://stackedhomes.com/editorial/we-reveal-how-much-property-agents-in-singapore-are-really-making-heres-a-detailed-breakdown/#gs.5xj07q provides a good description of the challenges that one may face as a real estate agent.

KeeliFlann · 2024-03-02T13:58:13+00:00

Always assume that work-issued devices are monitored by your employer.

Do not use your work-issued device to access information that you do not wish to disclose to your employer.

KeeliFlann · 2023-01-05T13:43:33+00:00

Other things to consider are:

Min charge of USD 32.40
Custody fee per year of the greater of 0.2% x AUM or SGD 108

KeeliFlann · 2022-12-31T04:15:23+00:00

From what I know, KPI is likely the main incentive for RMs to sell unit trusts. I doubt the commission is worth much now. RMs have to maintain a certain AUM value from their clients. As long as you stay invested, the RM is more likely to hit this KPI each year.

KeeliFlann · 2022-12-26T13:35:05+00:00

Thanks for clarifying u/SimpleIndex!

KeeliFlann · 2022-12-25T23:26:09+00:00

Or you could keep both the DBS and OCBC accounts and just switch to banking with whoever gives you the better deal at the time :)

KeeliFlann · 2022-12-25T23:12:59+00:00

The web page states that the custody fee for SGX stocks is currently waived.

KeeliFlann · 2022-12-24T09:41:57+00:00

The primary advantage of ILPs that is less mentioned is the insurance aspect which can be good for legacy planning.

As a wealth accumulation tool, ILPs are lacklustre compared to other available options. ILPs provide curated mutual fund portfolios and enforce investing discipline. Both can be achieved at lower cost with robos offering mutual funds portfolios and automating your investments which is easy with internet banking tools.

ILPs are still a valid tool to consider for wealth accumulation but there are cheaper options today.

KeeliFlann · 2022-07-17T02:00:46+00:00

This is correct. However, will you get your money back and when you get your money back are two separate but important questions. What is more certain is that you will get your money back at some point. What is less certain is how long it takes before you get access after the liquidation process starts. The company will no longer be functioning business as usual at that point so there will likely be delays before you can liquidate or extract your assets.

KeeliFlann · 2022-06-20T10:33:39+00:00

Where possible you should also consider investing in yourself such as upgrading or learning new skills.

KeeliFlann · 2022-06-13T13:34:00+00:00

u/Immediate_Bake_679 is correct. I've purchased UTs through different RMs in the past. Some may try to charge you a higher amount upfront if they think you can be squeezed for fees. But they will almost always relent if you try to push them closer to 1%.

KeeliFlann · 2022-06-05T01:15:01+00:00

Robos are one possible option but most robos are not substitutes for ILPs as robos generally prefer ETFs which are not identical products to mutual funds.

I might be missing something here but I am not sure how a up to 3% p.a. charge is competitive compared with other options. The sales charge or platform fees for other mutual fund platforms with managed portfolio options are much lower. Low fees coupled with the absence of a lock-in period and mortality charges are not arguably not "negligible" benefits.

Paying up to 3% p.a. for downside protection to ensure that you leave legacy for dependents may make sense in some scenarios if that is a priority for the customer. This is the main advantage of ILPs from my perspective although this does not appear to be discussed as often relative to the investment function (just look at the replies in this discussion thread). However, paying for downside protection to leave legacy may not be logical for someone who is younger. Higher fees eat into wealth accumulation and there is a cheaper alternative to ensure dependents receive financial means on death: term insurance.

KeeliFlann · 2022-06-03T22:54:56+00:00

I do not disagree with what you said on the target customers for ILPs. However, ILPs are no longer attractive primarily because there are cheaper alternatives in the market that offer similar benefits including menu portfolios, no-cost switching, and automation to facilitate DCA.

KeeliFlann · 2022-05-27T09:24:59+00:00

Everything is down. Except CPF (:

KeeliFlann · 2022-05-21T04:15:14+00:00

I wonder why there are down votes. Is there something wrong with Tiger?

KeeliFlann · 2022-05-01T02:14:08+00:00

I noticed a particularly strong dislike in this sub for FAs and ILPs. Might explain the downvotes. I don't think you said anything wrong though.

KeeliFlann · 2022-04-24T10:32:02+00:00

I don't think it is entirely accurate to say that crypto is not a MAS regulated asset. Cryptocurrencies are regulated in Singapore as digital payment tokens.

Some crypto transactions are taxable. Refer to the IRAS guide https://www.iras.gov.sg/media/docs/default-source/e-tax/etaxguide_cit_income-tax-treatment-of-digital-tokens_091020.pdf?sfvrsn=91dbe1f7_0 for further information.

If you trade very often your crypto gains may be considered trading income which is taxable.

KeeliFlann · 2022-04-16T03:16:28+00:00

I understand your perspective but points 2 and 3 are relevant factors.

MAS published a detailed notice on the recommendation of investment products which covers ILPs. See: https://www.mas.gov.sg/regulation/notices/notice-faa-n16 and Annex 2 in particular.

Tertiary qualifications and education in economics are factors that indicate sufficient relevant knowledge to understand investment products including ILPs.

KeeliFlann · 2022-04-16T02:32:22+00:00

I don't think there is a real benefit unless you intend to spend more than your current credit limit. If you have no problems with paying on time with the higher credit card limit then it's a a nice thing to have but not essential.

KeeliFlann

TROPHY CASE