Comments on: Decreasing Term Life Insurance can be your low cost insurance solution

By: Drizzt

Drizzt — Thu, 22 Jul 2010 11:03:33 +0000

thats the market to you my friend. it sometimes fluctuates off its tangent

By: huat

huat — Wed, 21 Jul 2010 14:52:00 +0000

Thanks Drizzt. Now i know how you determine the dividend value. Its based on forecast and not last year’s actual. Its logical. Wonder why the price keep increasing even though the yield is not as high compare to the others.
Rgds.

By: Drizzt

Drizzt — Wed, 21 Jul 2010 12:09:03 +0000

Hi Huat. it is likely i don’t factor in those 1.90 cents dividends as going forward, that is not the yield that you will be looking for as you stay vested.

best regards.

By: Huat

Huat — Wed, 21 Jul 2010 01:25:19 +0000

Drizzt, im not sure. below is the extract of dividend value extracted from starhill website and checked with Shareinvestor. I know i should check sgx website but im lazy.

Period Div
1Q10 – 1 Jan to 31 Mar 10 => 0.95 cents

4Q09 – 1 Oct to 30 Dec 09 => 0.97 cents

3Q09 – 1 Jul to 30 Sep 09 => 0.95 cents

2Q09 – 1 Apr to 30 Jun 09 => 1.90 cents

1Q09 – 1 Jan to 31 Mar 09 => 1.87 cents

In total for full year 2009, the total div should be 5.69cents.
My guess is you have only used the numbers from 1st Q and 2nd Q. Correct me if im wrong.

By: Drizzt

Drizzt — Tue, 20 Jul 2010 12:52:19 +0000

hi huat, i update this like 3-4 months ago. was it that wrong?

By: Huat

Huat — Tue, 20 Jul 2010 09:41:04 +0000

Hi Drizzt,
1st of all.. thanks for the dividend tracker. Im wondering how you get the dividend(SGD) value. Is it based on last year’s dividend actual? Seems like Starhill global dividend actual value should be more than what is stated in your tracker.
Thanks

By: Drizzt

Drizzt — Mon, 19 Jul 2010 14:26:16 +0000

hi tehts, i don’t think there is penalty. you are probably right in that aspect as it approachs low value. but i might be wrong that likely case, when it approaches end of life, there should be a small value but probably not zero.

the crux of this policy is that its objective is to protect for a certain goal and needs to be cost effective. Generally, Decreasing Term Life Insurance is often favoured because of cheaper premiums for a satisfactory amount of cover. Whereas, Level Term Life Insurance will ensure a lump sum payment to the beneficiaries as long as the claim is made at any time during the term.

By: tehts

tehts — Sun, 18 Jul 2010 14:16:03 +0000

Hi Drizzt. I don’t understand how this works. It is very good at the start, high coverage for low premium. Is there any penalty for prematurely ending this insurance scheme? Otherwise, why would anybody want to pay the same premium at the end of the agreed period when the coverage approaches zero.
Cheers

By: Drizzt

Drizzt — Thu, 08 Jul 2010 12:57:43 +0000

hi im not saying i don’t have whole life. i have a small one. but really, if you earn as little as me, and you want to insure yourself adequately yet you want to invest and take care of parents and pay for a medical bill half the size of a car loan, do you have another alternative?

i really don’t stress the 65 years old thing but the basis of this article is that not many know of decreasing term insurance, and the best application for it is mortgage. there could be other application:

such as a 100k insurance for 20 years should you not be around and your child cannot go uni.

By: La papillion

La papillion — Tue, 06 Jul 2010 06:05:50 +0000

Hi drizzt,

Why do you want to use a term plan to insure against mortgage risk? I think there are enough home protection plans to cater to such scenario.

I’m of the whole life camp. I believe that when one is old, the risk to protect against is not reduced but is increased. Just a question – what happens if you’re old (past 65) and you get C.I? Term plan do not cover until that age (plus/minus), so I’m using whole life for that purpose. In the meantime, because of the cost of the whole life plan, I’m using a term to cover a higher sum when I still have dependents until my retirement.

But of course, if one has budget problem, having some insurance is better than none. Though having the right insurance is better than some.