Income Protection Insurance

If you're working and you're the main breadwinner or income earner for your family, you need have some protection or insurance for the money that you bring. What would you do if you lost your job or couldn't work? How would you pay your bills and feed your family? If you don't have much in savings, you could end up with a serious financial problem very quickly. If you have income protection insurance, you can be much safer and have a lot more peace of mind, even if you do end up losing your income for some reason.

There are all kinds of ways that a person can lose his income and get an income protection quote for insurance well before you have any income problems. You need to get a quote from several different places because a lot of quotes are different, depending on the insurance company you work and the specifics of your particular situation. You can't expect all of the income protection cover options to be exactly the same that they offer and the coverage that you can get for that price. It's very important to keep that in mind, because you'll want to get the best coverage for your situation.

Income Protection Quote

When you plan on getting an income protection quote, talk with your family first. They might have a lot of thoughts about how much income will be needed and for how long. If you pay attention to what they have to say, you can take that information to the insurance agent of your choice or talk to several of them to get a better and more realistic income protection quote for you. That's a great thing to do and a nice way to show that you're really interested in making sure your family is taken care of if you lose your job. If the standard of living is far reduced, that won't be as helpful to you as having the income you were used to in the past.

This is good for layoffs and other similar issues, but be sure to ask questions about any income protection cover you decide to get. For some reason, you are fired, will you still be covered? If not, that's something to be aware of. What if your hours are cut or you want to go back to school? If you can't get any kind of income protection insurance for those possibilities, you'll want to know that.

There's nothing wrong with insurance that doesn't cover those kinds of things. If you have not covered, you'll need to be aware of that. You don't want to quit your job. You can go back to school or look for another job at a later date, only to find that your income protection cover isn't any good that way and you don't have any income at all.

This provides an income if you are put out of work on account of sudden illness or injury. The idea behind income protection insurance puts you back to the same position you were in. Before you were rendered incapable of work due to adverse health conditions. The good thing about this insurance, that it pays a regular monthly income that is absolutely tax free.

You may want to note that the insurance is not designed to let you make a profit out of your misfortune. The maximum amount that you could expect to extract out of the insurance is the after tax earnings that you would have lost due to illness, after deducting an adjustment for state benefits you can claim later. You could hope to get around 50% to 65% of your earnings before tax.

Income Protection Insurance

You need to be sure that you have indeed taken a very close look at the fine print of your policy document so that you are sure what to expect from it when you really need it. Income protection insurance could be of long term. The repayment policies are intended to kick in between the time when your employer has stopped paying sick pay, and the time. It takes when you get to collect your pension. The shorter term policies, protect a mortgage, or other obligations such as a bank loan or other payment. These policies could be expected to start after a few weeks, but they tend to stop entirely in a period of 12 to 24 months.

Central Washington fire kicks off wildfire season – get insurance tips here

A wildfire, called the Sleepy Hollow Fire,  is burning in Wenatchee and it has a high potential to spread to neighboring areas. People near the fire are being evacuated and so far several thousand acres dozens of homes have burned. You can follow breaking news about the fire on Twitter using #SleepyHollowFire.

The Insurance Commissioner’s website has information for consumers about wildfires and homeowner’s insurance, including things you should talk to your insurance agent about and tips for protecting your home and belongings. We also have tips for filing a claim after a natural disaster and how to find disaster resources.

Here are some other resources for Washingtonians:

• The Washington Department of Natural Resources has the most recent fire information available on its website and through its @waDNR_fire Twitter feed.
• Governor Inslee last week declared a state of emergency and instituted a statewide burn ban. In today’s statement about the fire, he urged citizens to forego fireworks because of the risk of fires. 

Wildfires are predicted to be extensive this summer. Here are some tips for preparing for wildfire risk:

• Check your policy to make sure damage from wildfires is covered. Some policies include some coverage for emergency shelter, such as a hotel, if a home is uninhabitable. 
• Review your policy to make sure you have enough coverage. Things like fine art, jewelry and computer equipment may have limited coverage under a standard policy. But you can buy special coverage that gives you more protection for those types of items, called a rider. Contact your insurance agent or broker to ask about supplemental policies. 
• Catalog your home’s belongings in case you need to make an insurance claim. The National Association of Insurance Commissioners has a printable home inventory checklist or you can try free iPhone/iPad or Android apps. 
• You can help protect a rural home and limit the danger by clearing a natural fire break between your home and surrounding trees, brush and uncut fields. The Federal Emergency Management Agency has information on how to protect yourself and your home before, during and even after a wildfire. 
• Have an emergency kit and a family communication plan. Know the location of your valuable papers, including insurance policy and contact information, mementos and anything you can't live without, so you can evacuate with them, if needed. 
• Here's a list of recommended emergency supplies to keep on hand in the case of an evacuation. 
• Don’t forget about planning for your pets. Ready.gov has tips for pet owners. 

Consumers can seek help with their insurance or ask insurance-related questions by calling our consumer advocates at 1-800-562-6900 or contacting us online.

What you Need to Know About Private Health Insurance

Healthy life is the only ways that one can be guaranteed a quality life. No one knows when a medical complication will strike and many are finding ways of cushioning themselves from such happening. Among the many health insurance packages available in the market, private health insurance is one of the most popular among many people.

What is a private health insurance?

This health insurance is a package designed to ensure that the covered person has nothing to worry about medical bills if they get ill in the future. The insurer is responsible for all the cost that the patient. It will be liable to the medical facility that they are treated in. The patient has nothing to do with the medical bills. The full cost of treatment which is serviced by the insurer. This insurance package is designed to get the patient diagnosed and get treated quickly compared to when they are on their own. The patient gets access to top quality health services when they need them.

Benefits of Private medical insurance

Proper health is a combination of a good lifestyle and quality health services. This type health insurance cover brings plenty of benefits the insured as they have the access to some of the best medical facilities and services as per the agreement. There are many reasons why you should consider buying a private medical cover. There are:

• Control over your treatment: Treatment requires a good cooperation between the patient and the doctor. Private health insurance gives the patient freedom to choose the doctors who they want to attend to them. This is an advantage that they might not have on their own.


• Quick access to treatment: This medical insurance cover enables the patients to get into the hospitals faster than those who use the public system. The waiting period before you can get access to medical services is very short. It is very easy for the medical condition to be treated before it's too late. This not only saves time but also the life of the patient.


• Quality facilities and services: Medical insurance companies work together with private medical facilities that are known to have some of the most updated medical equipment and facilities. Apart from top quality facilities, private hospitals are reputed for the quality of their medical experts.

Types the of medical insurance covers

Select the right insurance cover is the most important thing. Most insurance companies will provide you with two types of covers. The comprehensive and the special covers. Comprehensive insurance cover allows the insured to be treated all kinds of medical complication. From the mental, dental or any other health complication that the patient experiences when under this cover, the insurer is fully responsible for the full cost. Special covers will cover the insured on the selected areas or certain medical conditions e.g. a heart disease.

Make a claiming

Like any other insurance cover, you need for a claim. The bills can be sorted out. The insurer provides a list of the medical institution that you can select from. Most of them have the health facilities that the insurance company has an agreement. It is easy for the clearance of the patient. The healthy facility or the specialist that you are referring is not recognized by the insurer. You need to call the provider for advice before you are attending.

The fact remains that private health insurance has plenty of benefits that the insured get when they get sick. It cannot compare with any normal public health packages available. You should look for is the best insurance company to insure you. The reputation of the health insurance company is a crucial factor to consider before you can sign an agreement with them. Select the best insurer and you will never struggle with your health bills. You can rest assured that you will receive nothing but quality medical services with this insurance cover. Make sure that you have adhered to the set rules and regulations or the agreement between you and the insurer.

Life Insurance Quotes

Nobody anticipates to die suddenly. It is necessary to make sure you are ready to take off your respective loved ones. That is provided for something tragic happens to you. This information will offer you excellent advice regarding life coverage advice. Each part of your family can have their own special needs. That is connected to the insurance plan. It will have their own different clauses that need to be followed within the sad incident of your death. Do not insert too much private data to acquire a quote on the web. You can find a quick, free quote and make use of the info which you take care of id theft scams. Consider that the sole primary information, you must give away for any life insurance quotes is your zip code.

Compare Life Insurance Quotes

You need to compare prices from several companies when choosing a life insurance plan which you wish to purchase. Premium plans can vary around 50 per cent from your different providers. You need to get life insurance quotes and compare plans with online comparison websites. You must make certain that the person quotes you get have got your medical history. It is possible to notice a change in premiums pretty much half the charge for 40% from a company to another.

You don't reveal any job or art that the insurer may view high risk. You will end up giving more money. It is going to make certain that any claims caused by such risks will not be deemed ineligible. Not simply to dropped by the insurer, which is often a criminal offense or tort.

You should try to be healthier before getting started with an insurance plan by using an insurance coverage company. It may be costly to buy life insurance. It is more should your health is poor. You must get a lean body and overall fitness just before receiving a life insurance. You have to do whatever that is required, and lose weight or do anything to help. Your insurance premium will reflect your well being improves.

You can get many of quotes from multiple different life insurance coverage companies. Each company offers a different in the real way to considers for customers. As for those who have negative elements, you may have several different rate variations from a life insurance company to the next company. Devote a good amount of your time into calling several places and studying many insurance quotes before you buy.

Compare all of your life coverage policies from multiple companies before settling using one. Although policies have comparable features, one might stay longer than the other. Two policies may offer the same benefits that you want, but one can be more affordable. Cost shouldn't be the determining factor, examine all clauses for any hidden detail.

You need to guard yourself by reading the cancelation options to deal with you, whenever you are establishing in your life insurance prior to signing around a dotted line. Other companies will impose a fee or penalty for canceling the policy with them. You should be conscious of whatever penalties there are for canceling the insurance plan.

Tips for Buying Life Insurance

Ask questions to your broker and be certain that she / he can respond to them in confidence. Check if it is likely to cancel the plan at any moment. If it might be canceled anytime, or what premium assurances it comes with. So, you will need to know each policy's terms to select the solutions for each of your current issues in order to acquire the best one.

You need to cautious of the insurance brokers who state they realize it all whenever you a good policy. You might not take note that exist some of your retirement income from the right insurance in an attempt to finance retirement. Think about a policy which offers "return on premiums". You pay premiums to take a set length of time. If you outlive the term of the plan, you will get everything you repaid. You could make use of the money for everything you like.

Compare different life insurance quotes prior to your ultimate decision. This is simple and only needs a mobile phone or online without trouble. Do not provide personal data when doing this, as just fundamental demographics are essential.

Take care when searching for a realtor forever insurance. You may come to the final outcome that this independent contractor is preferred because they can show you different offers from various companies, as opposed to opt for a huge. They would only sell you their particular products. An impartial agent is well known a lot about different companies and the products they provide, and may offer invaluable assistance to letting you choose a policy. That is a good fit for you personally.

You should cash your policy out only in isolated instances. Many individuals choose to cash out policies when they proceed through a financial emergency. This is a misuse of cash you gave to your policy. There are other ways to help you to pay off the debt than trading your life insurance plans.

Take a proactive position whenever your term life insurance coverage policy expires. You should be still in good health, seek out a new term life policy. If you suffer from medical problems, you should consider turning your term policy in a solid policy. This will enable you to skip acquiring a new medical exam, as well as in the years to come. The price can be less than a that of an expression policy. Life insurance quotes are an integral part of financial planning which protects both you and your loved ones when the worst occurs. When you buy life insurance cover, it can seem complex, but involves doing your homework and asking a lot of questions. You should be persistent to acquire the plan you desire. Use all that you have discovered to assist you on how you can get the right insurance cover for your requirements

The Power Of Dividend Investing [Part 1]

There have been a number of emails from readers asking me how to calculate or get a decent dividend yield from investing in stocks. I've always subscribed to the idea that creating passive income is important in our lives if we want to achieve financial independence. We could then keep all our earned income and spend on our passive income to be self sufficient.

Investing for income or dividend investing is a good way to create passive income. This method has worked for many people just like how it has worked for me so far. Having extra money coming into our bank account every now and then is not a bad idea at all. I've always had the habit of transferring a portion of my salary to my other bank accounts. I make this process automatic so it is effortless on my part. Then, I can spend the rest of the money left in that one account.


Transferring out my salary but still have more money

I transfer a big part of my salary out from my bank account every month right after my salary comes in. When I do this, magic starts to happen to this account. At first, the money in that bank account seems to be decreasing but as time passes, the money in that account grew even though the automatic transfers were still happening. This was the result of creating passive income.

This was essentially what I did:

You can replace the overseas holiday with any other expenses which you might have. After transferring a big portion of my money out every single month, my account still grew to the point that I could now afford an overseas holiday to Japan, Europe or even the US without saving up.


If you want to enjoy,  go create it!

Too many people are just spending all their earned income in order to enjoy life. If we do that consistently, we will be broke all our lives. If you want to enjoy, go create it instead. By creating, I don't mean trying to earn more active income again. It is important to grow our active income and increase it but there will always be a limit on it.

If you can earn more active income but still have the time for other more important things in your life, go ahead and do it. If you take on an additional part time job on top of your full time job, sacrificing away your family time, it doesn't seem like a wise choice. Dividend investing for passive income can help us have more money and at the same time have more time.


The Power of dividend investing 

Dividend investing is a powerful concept. Most of us know Warren Buffett as a value investor but he is actually also a dividend investor as well, or we should say a dividend growth investor.

Warren Buffett's top 5 holdings are:

• Wells Fargo
• Coca-Cola
• American Express
• IBM
• Wal-Mart

All of the five stocks above pays dividends. Wal-Mart has paid increasing dividends for over 40 years. Coca-Cola has paid increasing dividends for over 50 years. Stocks that increases dividends for the long term is a good choice for a dividend investor. Moreover, a company that can increase dividends may mean its profits increases as well which leads to stock price increasing. Dividend and growth sometimes do go hand in hand. 

Singapore Stocks for dividend investing

Some of us are not too familiar with the US market so let's start with the Singapore stock market. Are there companies which has paid increasing dividends over the years?

Yes there is. Let's look at some Singapore stocks and how it will turn out if we had invested in it over the years.

Starhub

Starhub is one of the 3 telecommunication companies in Singapore. Its no doubt a dividend stock paying dividends to shareholders every quarter. In 2005, Starhub paid a total of 6.5cents in dividend. Fast forward to 2014, Starhub has increased dividends to 20cents for the whole of 2014. 

In 2005, Starhub's share price was trading at just $1.30. Today, the price is at $4.05.  If we had invested in Starhub back in 2005 and hold it all the way to now, we would be getting a dividend yield of 15.4% (based on a price of $1.30) and also the value of the stock price has increased by 3 times. $5000 invested in 2005 would become about $15000 now and we would still be getting about $800 dividends annually from the initial $5000 invested.  

Sembcorp Industries

Sembcorp industries is an energy, water and marine group. It has paid dividends every single year for the past 16 years. In year 2000, it paid total dividends of only 10 cents while today, it is paying dividends of 22 cents in 2014. Stock price was trading at around $1.70 in year 2000 and has increased to a high of $5.50 in 2014. 

$5000 invested in Sembcorp industries would have grown to $16000 in 2014. We would also be getting an annual dividend yield of 12.9% base on the price of $1.70 bought in year 2000. 

Jardine C&C

The most amazing dividend investing story would be from this company. Jardine C&C is a well know stock among investors especially for its high price of $36 now. At its peak, the price was more than $50. Jardine Cycle & Carriage engages in motor vehicle retail, distribution, and after-sales service.

This company has paid dividends for the past 23 years. In 1993, total dividends paid was 10 cents. Today, in 2014, total dividends paid add up to $1.08 in total. This is more than 10 times increase in its dividend payout. Stock price was trading at $3.80 in year 2000 (I only have the data from 2000 onwards). Today, price is at $36. Dividends has increased 10 times while stock price has increased about 10 times too. 

$5000 invested in Jardine C&C would have grown to $50,000 now and we still get about $1300 in dividends annually. This is a 28% dividend yield on the initial invested capital. 

Parkwaylife REIT

Parkwaylife REIT is a real estate investment trust which owns hospitals such as Mount Elizabeth and Gleneagles. It has paid dividends for the past 7 years with dividends at 7.4 cents in 2009 growing to 11.4 cents now.  Its stock price was trading at $0.76 in 2009 and $2.31 now. 

If we had invested from 2009 till now, we would be getting an annual dividend yield of 15% based on the purchase price of $0.76. 

Dividend yield of more than 10%

From the above examples, we would be getting more than 10% or even 20% dividend yield if we had bought and kept those dividend stocks for the long term. However, not all stocks have increasing dividends and increasing stock price. There are many stocks which performed poorly over the years with decreasing dividends or even cutting dividends off completely. Share price would also drop as a result. 

The challenge would be to research and find the stocks which have the potential for long term dividend play. In the next part of this post on the power of dividend investing, we'll look into some of the selection criteria which we can possibly use and the strategies to build a dividend portfolio.

Read Part 2 here: http://sgyounginvestment.blogspot.sg/2015/07/the-power-of-dividend-investing-part-2.html

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Related Posts:
1. How to pick stocks (Part 1) - Economic Moats
2. How to pick stocks (Part 2) - The profitability of a business

One Day Auto Insurance: An Ideal Short Term Coverage

It’s 9am and you got a business meeting at 10am downtown. The biggest mishap you can encounter? Your car broke down and repair shop is still a drive away.

In instances like this, you can borrow a car from your friend or relative and make use of one-day auto insurance. This kind of insurance will pay any injuries from vehicular accidents. Aside from this benefit, you can also keep your properties protected. For you to know, you can get an auto insurance that can last from 1 day to 1 year. And according to insurance experts, it is more reasonable to avail of one-day insurance than of a yearly basis.

One day auto insurance offers a lot of great deals. First is that you don’t need to pay a large amount of money which can help you save on your expenses. You can seek the opinion of an auto insurance adviser on what coverage to get. These advisers usually know the policies appropriate to your needs. This type of insurance is also useful when you need to test drive a car or when going on a long travel.

Others benefits from a one day auto insurance includes immediate use of coverage, ability to do transactions online, coverage for vehicles such as cars and vans, can be availed by people ages 21-69 or until 75 for the additional driver, plus a comprehensive coverage.

You may be wondering how these things can benefit you. It is a good thing that you can right away get your auto insurance claim in case accident occurs. Accidents do happen and no one knows when. As for doing your business online, it is more convenient and efficient. You’ll save a lot of time and effort. You are just a click away in paying your auto insurance premium.



Acquiring auto insurance is not anymore a tedious and expensive move. There are also car insurance policies available that won’t hurt your pocket but will be very useful. You can talk to a team of auto insurance providers who can provide you with a reliable insurance policy right away.

Going back to the concept of one day insurance, this will be practical in times when your car will be driven by a friend or relative. This kind of insurance is becoming popular since its introduction in 2005. And if you are a car racer, this can also be used when participating in racing events. Remember that this type of insurance covers whatever damages caused by an accident.

In addition to the benefits mentioned a while ago, one day insurance is more practical since it is of short-term agreement. It is favored by people who are interested in short term and cheap auto insurance policy. And similar to comprehensive coverage, this kind of insurance also gives protection against theft, fire and other accidents.

One day insurance is among the many types of car insurance policies available in the market and online. This greater access to a wide variety of car insurance choices makes people lives easy. Whatever are your needs, there’s always right and affordable auto insurance for you.

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About the Author

Elle Perkins

Find the best and ideal cheap auto insurance quote for your cars today! Visit our website now to get the best car insurance rates and save.

4 Things to Know About Full Coverage Car Insurance

People talk about full coverage auto insurance quite a bit. A friend, a family member, or actually your insurance agent may have stated it before.

Technically speaking, full coverage auto insurance does not exist. No insurance company should promote full coverage. Brokers or agents might use it as a term to guide physical damage coverage to distinguish it from state-required coverage. However, it is essential to understand what this indicates to people.

One of my insurance trainers coaches drilled into me, "There is no such thing as full-coverage insurance". Nevertheless, customers everywhere use the term. Therefore, my objective is to assist you realize what it is, what it's not, what it does, and whether you need it on your auto insurance policy.

Question #1: What is Full Coverage Auto Insurance?

Full Coverage pertains to the auto policy whenever it offers both liability coverage and physical damage coverage. Most people use this term to refer to physical damage coverage. Physical damage coverage consists of collision and comprehensive coverage.

Collision handles the physical damage to your car in an at-fault incident. When you run a red light and get into an accident, it covers the busted headlight on your vehicle. Generally, collision insurance covers damage to your automobile caused by collision with another object or by roll-over when it's your fault.

Comprehensive insurance covers damage to your automobile from vandalism, theft or glass breakage. Comprehensive handles physical damage to your vehicle through acts of God and other occurrences. When you're utilizing it, the harm to your automobile is not your mistake. - when it's not your fault. For example, when you're traveling down the road and a stone strikes the windshield causing a crack. Your comprehensive might include the damage. Most lien holders require physical damage coverage if you are financing or leasing your vehicle.

Question#2: Why Isn't It Really 'Full Coverage'?

As you can possibly tell, it's not precisely 'full coverage car insurance'. You still have to pay your deductible to use comprehensive and collision. Occasionally, it is $50, and sometimes its $1000. Whatever it is, your 'full coverage auto insurance' won't include it. You have to write the check for it.




You cannot deliberately damage your vehicle. In reality, you cannot cover that kind of damage.That sort of damage is simply not covered. Therefore, in case you're standing at the edge of a cliff prepared to deliver send your old beater to its final destination resting location, you can may back up now. There's no auto insurance for intentional damage.

Question #3: How Do You Use Full Coverage Auto Insurance?

Ideally, you'll never have to use your car insurance. But we don't live in an ideal world. When a tree ever falls on your car, or you sideswipe another car, then you want to inform your insurance company. These details are your evidence of insurance within the glove box (you do keep a copy in your car, right?).

Contact your insurer and describe the physical damage happened to your car. When another driver was not involved in the incident, and you were not at fault, then it is possibly a comprehensive claim. If you were at-fault in the event, it's a collision claim. Your auto insurance company will assist you at that stage. Keep in mind, claims are subject to policy guidelines.

Question #4: Do You Really Need Full Coverage?

Car insurance companies generally suggest you have comprehensive and collision coverage if you have a new vehicle. You may consider obtaining full coverage if you cannot manage to change the automobile with pay cash for your car. Lastly, the bank will demands you to keep comprehensive and collision on the policy plan if they're funding the vehicle. Banks like to be compensated if you wreck your car.

It's important to be aware of everything that your car insurance covers. If you speak with an agent, ask him if your insurance is enough. Most lenders require collision insurance. If not, then drop it to liability-only but only if you are willing to take a loss on the car if you wreak it.

If you have a later model automobile, this it might be time to drop your comprehensive and collision. If you can manage afford the danger of the vehicle worth a few thousand bucks loss, this might be okay to drop full coverage on your policy to conserve some premium dollars.

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About the Author

Todd Clay

Todd Clay was an agent for the largest insurance company in the US. He now researches and blogs about car insurance coverage with the..

Consumers should beware of flood damage when shopping for used cars

The New York Times recently reported a warning to consumers about how to identify a flood-damaged car when shopping for used vehicles. Flooding this month in Texas has damaged upwards of 10,000 cars, leaving them at risk for damaged mechanical, electrical and computerized components that could render a car unsafe to drive.

Comprehensive coverage will generally pay for damage to an insured car that’s been in a flood. However, when flood-damaged vehicles are not repairable, many states issue a “salvage” title or a new title that specifies the car has been in a flood.

Before you purchase a used car, it’s important to run the vehicle identification number (VIN) through a database to see its vehicle history.

• CarFax is a popular service, which starts at $40 for one report. CarFax also has a free tool to check solely for flood damage.
• The National Insurance Crime Bureau (NICB) has a free search called VINCheck that shows if a vehicle has been reported stolen or with a salvage title from any of these insurers. 
• The National Motor Vehicle Title Information System has links to services where consumers can pay for a search of a vehicle’s history. 

In addition to running a vehicle history report, here are tips from the Northwest Insurance Council about how to avoid purchasing a vehicle that’s been in a flood:

• Check for mud or grit in the spare tire compartment, alternator crevices, behind wiring harnesses, around the small recesses of starter motors, power steering pumps and relays. 
• Check inside the seatbelt retractors by pulling the seatbelt all the way out and inspect for moisture, mildew or grime. 
• Check door speakers as they will often be damaged due to flooding.
• Inspect the vehicle for water stains, mildew, sand or silt under the carpets, floor mats, headliner cloth and behind the dashboard.

If you suspect that a car dealer or individual is knowingly selling flooded cars without disclosing the damage, you should contact local law enforcement or the NICB at 800-TEL-NICB.

OIC is hiring an Investigator 1 in training for our Legal Affairs division

The OIC is hiring an Investigator 1 (in training) in our Legal Affairs division, located at our Tumwater headquarters. We will hire the position as an Insurance Technician 3 and upon successful completion of a 12-month in-training plan, will promote to an Investigator 1.

This position conducts routine preliminary investigations into complaints alleging violations of the insurance code and proactive Internet investigations aimed at uncovering unauthorized insurance sales in Washington state.

Duties include:

• Conducting routine preliminary investigations of complaints alleging violations of the insurance code involving licensed and unlicensed individuals and entities operating throughout Washington. 
• Responding to all investigative requests received by the Investigations Unit via the OIC website, telephone, in writing, email, and in person. 
• Gathering facts and evidence from multiple sources, conduct interviews, review insurance practices, forms, contracts, service agreements, and other documents.
• Analyzing and evaluating the evidence obtained to determine if there is sufficient reason to believe a violation of the insurance code may have occurred. 
• Providing investigative support to other investigators, the Investigator Supervisor, or the Investigations Manager on more complex investigations or special projects.

View the full description or apply: Investigator 1 (In-Training)

Never Rely On CPF For Your Retirement?

In my previous post on "You Can Never Retire If You Only Save 10% Of Your Income", I said if we only save 10% of our income, it is impossible to retire. There was a comment in that post saying that since we can't retire on 10% savings, then maybe we can retire on our CPF savings which we contribute 37% of our salary on a monthly basis.

In case you didn't realise, yes we contribute 37% of our monthly salary to our CPF. This is quite a high savings rate to speak of. 20% is contributed by us and 17% is contributed by our employer. It goes into 3 separate accounts mainly the ordinary, special and medisave account.


Most of us use CPF to pay for housing loans and medical insurance

However, as we all know, most of us will use our CPF money to pay for our housing loans and also medical insurance. In most cases, young people now and in the near future will need to pay about $1200 per month for their housing loans base on a $300,000 price HDB flat. If we divide equally between husband and wife, each will need to pay about $600 for their housing loan. For a fresh graduate who earns $3000, $600 is almost all that he contributes to his ordinary account. Assuming if salary remains constant, this person would have close to nothing in his ordinary account when he reach 55.

It is a good idea to rely on CPF for your retirement? If we think that we don't need to have our own personal savings because there is CPF, will we be in big trouble?


How much CPF will we have after using it for housing?

Let's demystify how much CPF will we have after using it for housing. Many people say that the future generation of young people will have no money left in their CPF after paying for the high housing loans. Is this true?

I've done the calculation and here is the scenario and the result:

• Starts with $2500 salary and assuming it increases 3% per year 
• Buys $300,000 HDB flat ($275,000 after grant)
• Pays $556/month for housing loan from CPF OA (Divide by 2 with spouse)

From the above scenario, this person will have $580,978 in total from all 3 CPF accounts even after finishing paying for his or her housing loan. Doesn't sound too bad after all. 

From a chart perspective, here's how the CPF money will grow:

*Above figures are estimated and assumes no overflows from MA in excess of Medisave contribution ceiling

How much would we have if we did not use our CPF monies at all?

On the other hand, if we did not use our CPF money at all to pay for housing loans, how much would we have?

The number is......  $852,515

This is $271,537 more than the previous example of using CPF for housing. If you notice, the amount paid for the housing loan is only $166,800 per person ($556 x 12 months x 25 years). But, if the money is left inside CPF, there is about $100,000 more due to the interest compounded in the CPF accounts.

Here is the chart for the scenario of not using CPF money at all:

Look closely at the chart again. After age 55 to 65, the person who doesn't use his CPF money at all is a millionaire at age 65. In fact, he has more than a million dollars at $1,152,048. Just by a starting salary of $2500 and growing at 3% per annum, a person can become a millionaire by age 65 if he choose to leave his money in his CPF account.

*Above figures are estimated and assumes no overflows from MA in excess of Medisave contribution ceiling

Should we use or keep our CPF money?

Using your CPF to pay for your housing loans or keeping your CPF money inside to earn higher interest is a decision we all have to make. What I have done is simply to show you the difference between using and not using your CPF money. The example above is never perfect with various assumptions. Some may say a starting salary of $2500 is not realistic and a consistent 3% salary increment doesn't sound realistic too. What if we lose our job along the way? Yes, these are all valid concern but the model above is just to give you a rough guide base on the assumptions.

There are also instances where we will earn higher salaries which is even better for us. I have done the calculations before that if we save $1500 per month and invest it at 5% ROI, we will achieve a million dollars in 28 years. CPF gives us interest of about 2.5%-5% for us who are below 55. It is possible to accumulate a substantial amount of wealth through the CPF system alone. Never rely on CPF for your retirement? It really depends on how you use it. Most of us will not be able to rely on CPF for retirement if we choose to empty it early in our lives.

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Related Posts:
1. Changes to the CPF - CPF Focus Group Discussion
2. The affordability of housing in Singapore and the various housing grants available

OIC hiring applications, database developer in Tumwater

The OIC is hiring an IT Systems/App Specialist 6 in our Operations Division at our Tumwater headquarters. We are looking for an expert professional-level application and database developer to provide the highest level of technical expertise in the areas of application development and data management.

Duties include:

• Plan, analyze, develop, test, and implement enhancements and new functionality to the codebase (including .NET, C#, ASPX, jquery, javascript, html, etc) and database (MS SQL Server) as required for strategic IT business initiatives.
• Apply appropriate software change control procedures and IT “best practices” when applying software changes including to production, integration, UAT, and development environments.
• Provide .Net, C#, and SQL expertise to other developers (staff and vendors).

For more information or to apply, view the full description: IT Systems/App Specialist 6

Become a Savvier Online Shopper: 5 Tricks and Tips to Note!

It’s time to face up to the facts - online shopping is in. With retail therapy conveniently moving online, physical shopping might very well be on its way to becoming obsolete. Of course, that shouldn’t be a cause for concern - any online shopper will know the satisfaction of placing an order online, and having it doubled when receiving the precious parcel a few days later. And there’s no need to have it all at the expense of your wallet - here are five insider tips to help you turn your online shopping trials into triumphs.

1. Filters

If you haven’t been using filters when you browse online, you’ve been doing online shopping the wrong way. Sort your online goodies from Price Low to High to root out the best deals on the site, and keep everything organized for your browsing ease.


For those frustrated at having to sift through pages of irrelevant but cheap items, that’s exactly where the price range toggles come in. Simply adjust your minimum price to something reasonable of the category and you’ll be good to go. Then again, for those who like challenges, feel free to keep the minimum price at $0 – after all, you never know when an extra value deal sneaks its way into the game.

Price filters aside, you can also play with the various filter options provided to you by the website - in clothing sections alone, filters like size, length of skirts, colours, brands and more can really help to narrow down your options so you can access exactly what you want, instantly and efficiently.

2. Sign up for the newsletter

Believe it or not, the online newsletter exists for a purpose larger than flooding your inbox with useless spam. Signing up for the store newsletter gives you advance notice on sales and updates that could do wonders for your savings account.

In exchange for your elusive email, stores tend to reward customer's loyalty with sneak-peek ‘first looks’ at upcoming sales, and sometimes even the handy coupon code. When that happens, you definitely don’t want to miss it out. For many online stores, if you go the extra mile to sign up for an account, you’ll often be gifted with a special discount code on your birthday.

It’s a worthwhile trade for your inbox space, but if you’re still a little hesitant, here’s a tip –create a separate account purely for online shopping accounts and updates. That way, if you’re ever in the mood to part with your money, you’ll find a whole host of avenues waiting neatly for you in one place.

3. Cash in (or out) on holidays

Public holidays aren’t just good for a free day off from work or school now – online stores have cashed in on the holiday hype (and the fact that people are happier on a break) to entice customers with special promo codes and sales. Take a look around: Zalora, ASOS, Lazada, Groupon are just some of the big names that have taken to offering holiday-specific discounts when the occasion arises. Take your pick from Mother’s Day, Father’s Day, Labour Day, and the many other extraneous holidays that bring with them an onslaught of much appreciated discount codes. So if you’ve got your eyes on something, it might help to keep the other eye out for any upcoming public holidays before you place that order. 

4. Resist – curb the urge!

Strangely enough, playing hard to get with your favourite online store works, especially when you’re usually a loyal purchasing customer of the website. From a tried-and-tested perspective, if you refrain from ordering from ASOS for a substantial period of time – whether intentionally or not – this British retailer will very graciously send you a “We miss you, take 20% off!” promo code, exclusive only to you.

Singapore’s Zalora too, has been known to show the occasional act of generosity if you leave something simmering in your cart for a few days. For anyone intending to make a hasty purchase at full price, it might be worthwhile to consider playing the waiting game, because indeed, good things come to those who wait. 

5. Use CashBack Websites!

It’s a little novel to us here in Singapore, but getting money back when you shop has been a popular trend for quite a while now. Most famously done in the US, shoppers can get cashback from purchasing their favourite brands through the particular cashback website. It’s a nifty notion that has thankfully made its way onto our shores  – the cashback sites get their commission, and you get a portion of the money you spent credited back to you.

One such website that offers cashback to the South East Asian consumers is ShopBack Singapore – in addition to cashback on over 500 shops, you’ll get access to current active promo codes and discount codes for those stores including ASOS, Zalora, Groupon, Expedia, Agoda.com, and hundreds more. Once you’ve accumulated at least $10 of cashback in your ShopBack account, you can conveniently cash it out into your bank and PayPal accounts helping you save more online. 

At the end of the day, getting the most out of your online shopping experience comes down to shopping smart. Understanding and knowing how best to work the ways of the websites will help any avid shopper get a good deal - possibly even more than in shopping real-world retail. And honestly, who needs instant gratification when you can have the delayed pleasure of receiving a parcel addressed to yourself, from yourself?  

Amanda writes for cash back website ShopBack Singapore and has 48 pairs of shoes. Other than that, she's pretty good at handling her finances.

This post is brought to you by Shopback. Sign up and start enjoying cashback for your online purchases today!

Pools and trampolines increase summer fun, but also insurance risk

Before inviting friends and family over to enjoy your swimming pool or trampoline, know that either may increase your insurance risk. Because pools and trampolines can be dangerous, some companies may not insure your property if you own them, or your policy may have exclusions for liability for related injuries. 

An insurance company may also deny coverage or cancel your policy if you do not follow its safety guidelines or fail to inform the company when you build a pool or purchase a trampoline. Some insurers offer lower rates or discounts if you add safety features, such as installing a fence or locked gate.

Talk to your insurer about purchasing an umbrella policy in addition to your homeowner’s insurance to increase your liability coverage in the event of an injury. But be forewarned, if you do have an injury claim, your insurer may cancel your coverage later.

If you lease or rent a property with a pool, discuss your insurance options with your agent or insurance company.

Read more about homeowner’s insurance on our website. Questions? You can contact our consumer advocates online or at 1-800-562-6900.

Earn As Much As You Can But Never Sacrifice Your Soul To Do It

Money..... The most important aspect of our lives? Or is it not? From the day we graduate from school and enter the corporate world, we devote so much of our time for work that it seems like we do not have enough time for anything else. Replying to emails in the middle of the night, answering calls even during weekends becomes part of our lives.

Busy is the word that constantly comes out from our mouths. The bills to pay, the house to pay, the car loan to service and the children to feed keeps us moving higher up the corporate ladder to earn more. Before we know it, we are sucked into this corporate world for God knows how long a period of time.

The rat race is what most people call it. The rat keeps running on the wheel but never reaches a destination. Going round and round and round for so long without a purpose. Is that the life we want for ourselves? Or is there a greater purpose to life than just making money? 

Credit: http://en.wikipedia.org/wiki/Atlantic_slave_trade

Earn as much as you can but never sacrifice your soul to do it is the message. We all know our limits when our soul is sacrificed. When we start to neglect our health to earn money, when we start to neglect our family to earn money is not a good choice to make. Money lost can be earned back but time lost can never be recovered.

I had a colleague who choose to focus on his children and family instead of just aimlessly making money. In the past, he was working full time in the day and worked as a property agent by night. The money was good but his time with his children in the evenings and weekends were sacrificed. One day, while he was alone in a client's apartment thinking about his life, he asked himself is it worth it to spend less time with his family just to earn this extra money? His answer was No and never regretted ever since.


How We Get Ourselves in The Rat Race? 

A conscious decision early in our lives can make a difference on the path we will take in life. Let me illustrate this with a story:

There was a man who lived with his newly wed wife and they own a simple house at the outskirts of the city. The couple were excited for the new family they are going to have and had many plans for their future. They wanted to renovate their house to make it nicer, buy a car, build a beautiful pond, have children and also build a barn to raise animals. However, after calculating their budget, the couple realised they could only do one thing only.

The wife suggested that they renovate their house. The husband asked: "why should we renovate the house?". The wife replied: "If we renovate the house, our house value will go up so it is a good choice." The husband however said: "We should build a barn to raise animals." Both of them could not come to an agreement and quarrelled aggressively over this issue. The wife was so angry that she questioned her husband: "Are the animals more important than me?"

Who do you think won the argument in the end? The wife or the husband? In the end, the husband eventually won the argument. The husband said: "If we build the barn to raise animals, the income from the animals will pay for the renovation. More than that, it will also pay for the car we want to buy, the pond we want to build and the children we want to have."

Most of us sacrifice our soul to earn more money because we "renovate the house" first. When we entered the workforce, we start to spend more thinking that we are increasing our standards of living. We buy a car, we renovate the house, we go on expensive holiday trips. When our income doubles, we double our expenditure too. In the end, we have no money to build the barn and still have to work doubly hard to sustain our so called higher standards of living,

Remember, we can still have the pond, the car, the renovation without working doubly hard and getting into the rat race. Build the barn first and let it pay for the others. Gradually, let money work for you while you're still working for money. It takes time and some sacrifice not to renovate the house first in the beginning to build the barn but it'll be all worth it. A conscious decision can change your life forever.

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Related Posts:
1. How to spend on an overseas holiday but still have money?
2. The Two Approaches to Making Money

You Can Never Retire If You Only Save 10% Of Your Income

Saving 10% of income is better than not saving any money at all? That's what a lot of people say. But, is it wise to save only 10% of our income? Saving 10% only means spending 90% of our income. If you earn $1000 and can only save $100, it is still acceptable as you may not have much money to spend. But if you earn $5000 and only save $500, it is a whole different story.

Saving 10% of our income takes us 51 years before we can retire. Even if you start saving since the day you start working, you still can't retire in your 70s. Many people may say they want to double their income so they can have a better lifestyle and don't have to sacrifice too much to save money.

The scary part about increasing your income to increase expenses is that it has a negative doubling effect on your life. It is the simple reason why people who earn higher salary can get into an even worse financial problem than another person who earns lesser income.

Credit: http://pixabay.com/en/percent-percentage-percent-sign-76213/

Percentage of Savings makes a difference

Previously, I wrote that there was a report on Asiaone which showed how people in their 30s got into financial problems. Below shows 2 of the cases:

Case 3  

The third person is a 33 year old who earns $4000 monthly. Has credit card debt totalling $15,000 which was accumulated since 2007. 

The lifestyle:

• Go to the spa every week for massages, mani-pedis and hair treatments

• Take cabs everywhere

• Eat at expensive restaurants twice a week

• Always treating friends to drinks when outside

There were several instances where she was flat broke and has to walk one and a half hour from her office back home because she doesn't even have money to take a bus or MRT home.  

Case 4
The fourth case is a couple of age 34 and 36. Both are lawyers and have a combined income of $17,000. This amount of salary is an envy for many but they still can get into trouble. Currently has debts amounting to a couple of hundred thousands dollars.Their lifestyle:

• Spent $100,000 on wedding

• Pay six figure sum for a condo in a prime district

• Spent even more money on renovating and expensive furnitures for the house

They said the debts will probably take them 3 years to clear. 

In case 4, the couple had a combined monthly income of $17,000 but has debts amounting to a couple of hundred thousands dollars. This is more than the $15,000 debt which the person in case 3 who earns only $4000 monthly.

The most important thing to note is that cutting your spending rate is much more powerful than increasing your income. The reason is that every permanent drop in your spending has a DOUBLE effect:

1. it increases the amount of money you have left over to save each month
2. and it permanently decreases the amount you’ll need every month for the rest of your life

If you ask a person who spends $5000/month how much he needs for retirement, he'll probably say about $5000. If you ask a person who spends only $2000/ month how much he needs for retirement, he'll probably say about $2000. It is very very hard to change your "upgraded" lifestyle once you're up there. Some people may say that they can downgrade their lifestyles when they are older but how many have actually done it? 

Creating income for retirement is better than saving for retirement. If you spend $5000/month, you have less money saved per month and it takes a longer time to create a $5000/month income for your retirement. You need $1.5 Million dollars to create a $5000/month income base on a withdrawal rate of 4%. If you earn $10K per month and spend $5K, it takes about 17 years to do it. That is a 50% savings rate invested at 5% yearly compounded returns to achieve $1.5 Million dollars in 17 years. 

If now you earn only $6K and still spend $5K, it'll take you 41 years to create an income of $5K as compared to 17 years in the above example. In this case, this person only saves 16% of his salary. It really is just simple maths, saving 16% will mean spending 84%. 

How Much Should We Save?

10% savings takes 51 years before we can create an income that surpasses our expenses for retirement. If we do that, we will never be able to retire at all unless you have other alternatives. This is the hard truth of life and the reason why many people cannot retire today. 

If 10% savings is a no no, how much should we save then? I've done the calculations and here's the verdict:

Savings Rate (Percent)	Working Years Until Retirement
5	66
10	51
15	43
20	37
25	32
30	28
35	25
40	22
45	19
50	17
55	14.5
60	12.5
65	10.5
70	8.5
75	7
80	5.5
85	4
90	3
95	2
100	Zero

Look at the savings rate and the working years until retirement. If we want early retirement in our 40s, probably a 50% savings rate is good. If we want to retire before 60, we should save at least 25% of our income starting from our 20s.

It is really not that hard to retire if we can see the road ahead and plan accordingly.

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Related Posts:
1. Save 75% of your income to retire in 7 years
2. How an Average Family Can Retire Within 10 years of Working?

We are hiring for our consumer hotline

The Office of the Insurance Commissioner (OIC) is hiring an Insurance Technician 1 and building a register of qualified candidates who may be considered for other permanent or non-permanent Insurance Technician 1 positions in the Consumer Advocacy Program in the Consumer Protection Division that occur within the next six months.

This position provides clerical support to the Consumer Advocacy Program and answers and triages consumer hotline calls. Hotline responsibilities include assessing issues, providing routine departmental information, and routing calls to the appropriate unit, staff person or agency. This position assists insurance producers with the website and answers basic licensing questions.

Duties of this position include, but are not limited to, the following:

• Triaging calls and assisting consumer with Consumer Advocacy, Statewide Health Insurance Benefit Advisor (SHIBA) program, and Licensing inquiries on the hotline. 
• Explaining basic insurance rules and procedures, answering questions and resolving problems involving insurance matters.
• Providing information regarding actions insurance producers/brokers and applicants need to take to comply with licensing requirements.
• Helping consumers and companies troubleshoot online application issues. 

Find more information or apply at careers.wa.gov.

Saving For Retirement or Creating Income For Retirement?

Let me tell you the truth, saving for retirement no longer works in Singapore. If you're living in another high cost of living city like Singapore, most likely your money saved up for retirement isn't going to last you a long time too.

1 Million dollars isn't going to last very long for a lot of people. During the national day rally by our prime minister last year, a poll was conducted to ask the audience how much money do they think they need a month for retirement. Most agreed on the sum of $3000 on average. If we were to spend $3000 per month during retirement, 1 Million dollars is only going to last us about 27 years. This means, if you stop working at age 55, your 1 Million dollars will run out by the time you're 82. With longer life expectancy now, most of us are going to be still alive at the age of 82. If you have less money to retire, retirement is probably going to be painful for you.

Fortunately, there is always a workaround for every problem. If we know that we can't follow the traditional way of saving up for retirement, then its time to explore other ways.

Let me illustrate to you the difference between saving up for retirement and creating income for retirement.

We as Singaporean love durians. So, let's use durians as an example in this illustration.

If we save for retirement, its like we are accumulating durians all throughout our lives and consume it only when we stop working.

How long can the durians we accumulated last us? 1 year? 3 years? 10 years?

Now, how about we rack our brains a little and instead of accumulating durians from other durian trees, we plant our own durian trees?

How long will the durians last this time round? Unlimited and perhaps infinity?

Don't Just Accumulate Money, Create Money

A durian tree produces durians that can possibly last a lifetime. You might be thinking a durian tree can die so what happens to the fruits later? The trick is we can keep planting durian trees and if one dies, we still have others to rely on. As with multiple durian trees, we can also have multiple streams of income.

Most people accumulate money from other money trees. This money tree is probably from your company which pays you everytime you work. However, most people do not know that it IS POSSIBLE to plant their own money tree. By doing that, we have created money (fruits) for ourselves that can last a life time. 

If we save $1500 per month and invest it at a 5% rate of return, we would be able to create a passive income of $3000 per month after 26 years, base on a 4% withdrawal rate.

If we save $3000 per month and invest it similarly at a 5% rate of return, we would be able to create a passive income of $3000 per month after 17 years, base on a 4% withdrawal rate.

The 4% withdrawal rate means we invest in a stable asset which gives us a consistent yield of 4%. This rate is known as the safe withdrawal rate which is the maximum rate at which you can spend your retirement savings, such that you don’t run out in your lifetime.

Most of us, if we start planting our money tree in our 20s, will be able to enjoy an unlimited flow of $3000 per month in our 50s. You need to save at least $1500 per month and invest it at a 5% rate of return for it to become a reality. You either save more or increase your rate of return to accelerate the process. It can even be achieved in your 40s.


Insurance products for retirement?

If you're depending on the insurance you bought for retirement, you'll regret when the time comes. Most insurance products are for INSURANCE. That is the sole purpose of buying insurance. Some people use endowment policies as a form of savings but if you realise, even after putting your money inside the endowment policy for 25 years, you still don't get much money back.

The reason is because endowment polices mostly generate only an average 3% yield and there is also an insurance element in it which is paid as expenses. For example, assuming every $1 you pay for an endowment policy, 80 cents goes into a life fund as savings which yields on average 3% and 20 cents goes into paying for the insurance coverage. The 20 cents paid can never be retrieved back. It is expenses paid. This is similar for a whole life plan.

What happens when you get that lump sum back in your retirement years? That lump sum is just like the basket of durians in the earlier example above. How long can it last? If you draw out $3000 monthly on a $250,000 lump sum, it can only last you less than 7 years. The question is, will you even get back $250,000 on your insurance policies?


The Creation of CPF life

Knowing that Singaporeans are living longer and a sum of money cannot be enough for retirement, the Singapore government introduced CPF life as a form of annuity which pays us monthly income during our retirement years (65 years old) for the rest of our lives. This is as if a durian tree has been planted for us. It provides the money we need for our monthly expenses for life. Previously, Singaporeans could draw upon their CPF savings for only 20 years.

However, there will still be limitations of this scheme. The maximum amount of monthly income we can get now is $1750 to $1900 if we put in the maximum allowed enhanced retirement sum of $241,500. If you want a monthly income of $3000 for your retirement, you still have to find other alternative ways to create that extra $1100 of income for yourself.

That being said, if we want a stable flow of income of $1900 per month during our retirement years, we should definitely utilise the new CPF life enhanced retirement sum. $241,500 is not a lot of money to get $1900 for life. If we want to create a similar amount of monthly income on our own, we need to save up about $580,000 to get $1900 per month, base on a 4% withdrawal rate. It is more than doubled the amount required as compared to CPF life.

Now, assuming that the retirement sums in the CPF life scheme will go up over the years, we could possibly put in more money to get a $3000 or more monthly income in the future.

Earn more, save more, plant the money tree early. That's the formula for creating income for a lifelong retirement.

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Related Posts:
1. CPF Advisory Panel's Recommendations - 3 Basic Options You Need To Know
2. Make Money Investing For Passive Income