MINDEF & MHA Group Insurance

Many of us would have seen the news on the new subsidised insurance which MINDEF is providing to all personnel including regulars, NSF and NSmen. This also extends to your spouse and children. You can read the news here.

The purpose of this post is to uncover the protection provided and the premiums payable. From what I see so far, the coverage we get and the premiums payable is so much lesser than if we were to get from outside insurance agents. You'll be surprised it is about half the cost. This is one of the 30 recommendations by the Committee to Strengthen National Service (CSNS) to better recognise the contributions of national servicemen to national defence and security, and to strengthen our care for them.

If you've served national service, this will be of interest to you. If not, if your spouse has served national service, you can also get the insurance through him or her.

What is the MINDEF & MHA Group Insurance?

Under the MINDEF & MHA Group Insurance, there is group term life and personal accident insurance. Even if we do not buy any insurance, from 1 July 2016, we will automatically be provided with $150,000 group term life and $150,000 group personal accident insurance coverage during the period of our full-time NS and operationally-ready NS (ORNS) duties. The premiums are fully paid by MINDEF and MHA.


Group term life insurance

To get additional coverage, we can opt for the voluntary scheme. This scheme will only be available from 1 July 2016 for MHA personnel and 1 October 2016 for MINDEF personnel. We can get term life and personal accident insurance through this scheme. I will focus more on the MINDEF/SAF group. The premiums for the Group term life insurance is as below:

(Group Term Life Premiums)

As we can see, for a coverage of 1 Million, the premiums is only $41 per month. This covers 1 Million in the event of death or Total Permanent Disability only. If we compare to a term life insurance in the market using compare first website, the lowest will be $71 per month.


Critical Illness Rider

If we're thinking to just get insurance for death and total permanent disability, then it wouldn't be much of an issue. However, if we want to add in riders for critical illness, there are certain limitations for this scheme.

The limitations are:

1. Critical illness only cover maximum $350K
2. The premiums are not flat but increasing 

The critical illness rider under the Group term life insurance is called "living care". It covers against 37 common critical illness. Here are the premiums payable:

(Living care rider premiums)

As we can see, the premiums are in age bracket and not flat rate. This means we have to pay more per month as we hit the next age bracket. The problem is when we get pass 50 years old, the premiums can be quite a lot and even more when we are above age 60. If we are planning to add in this rider, there may be a problem in later parts of our life.


Disability Income Rider

There is also another optional rider called disability income. This coverage will replace your income in the event of disability. The annual coverage amount is based on 50% of your monthly basic salary multiplied by 12 times up to a maximum annual benefit of S$120,000. 

Here is the premiums table:

Similar to the living care rider, the disability income rider premiums are increasing. A point to note is the riders have to be bought together with the Group Term Life or Group Personal Accident insurance. We cannot buy the riders only without the main insurance.

Group Personal Accident insurance

For the personal accident insurance, it provides coverage in the event of an accident. We can cover up to $600,000 at cheap premiums.

Here's the premiums table:

(Personal Accident Premiums)

For personal accident, the premiums are on a flat rate and doesn't cost much. For the full list of items and conditions we can claim, you can refer to the brochure here.

List of resources

Lastly, I've complied the list of brochures from the website which I've wrote in this post. You can refer to the brochures for more information on the coverage and the premiums. I understand that to apply for the insurance, we cannot get through the public insurance agents channel and have to purchase direct from Aviva.

1. Group Term Life Product Summary
2. Group Personal Accident Product Summary
3. Living Care Product Summary
4. Disability Income Product Summary

For the full suite of insurance offered under the MINDEF & MHA Group Insurance, you can refer to the website here.

The above products are more for MINDEF personnel. For MHA personnel, you can refer here. It is quite similar from what I see.

I hope this post is useful for those who want to find out more on the new group insurance for people who served national service and played a part in contributing to national security. Don't forget this applies for your spouse and children as well so you can also buy for them through the voluntary scheme.

The Health Insurance Process - When the Patient Gets Stuck

Thinks about demonstrate that ER costs make up the greatest bit of sums owed from safeguarded and uninsured patients attempting to pay doctor's visit expenses!

In Network or Not?

Did you realize that around 66% of crisis room specialists are self employed entities who might possibly be in your protection arrangement? What's more, in a practice called parity charging, any out-of-system supplier or lab can charge you for whatever your protection does not cover. You may get bills from a few substances, some of which you never at any point met!

What is an out-of-system supplier mean? This is a medicinal services proficient that does not have an agreement with a protection arrangement. In this way, the supplier does not need to acknowledge the protection's suitable sum as installment in full.

The Ambulance

Consider the rescue vehicle as well. In the event that the rescue vehicle organization that takes you to the ER does not hold an agreement with your protection, you could be on the snare for more than $2,000.00 relying upon where you live in connection to the ER and what level of consideration your get before landing at the doctor's facility. Also, if your insurance agency infers that an ER visit wasn't justified, you may owe much more cash.

To evade these dreadful shocks, consider the accompanying methodologies:

Protection Policy

It may sound simple since it is. Ask your safety net provider what the arrangement does and does not cover in case of crisis consideration. This incorporates the ER copay, coinsurance, and deductible - all through system. Numerous patients are astounded to realize there are diverse qualities for out-of-system consideration. A few arranges even have a layered installment framework. Discover which range clinics are in system with your protection. Check with the doctor's facility to see which ER specialists are in system in your protection arrangement.

Discover how your arrangement characterizes a restoratively essential emergency vehicle ride and what is required to offer a non-installment choice.

EMTs choose which clinic they will take you as well yet you can ask for a specific one. Demand an in-system specialist when the affirmation structures are finished. Know, be that as it may, your protection may deny the charge in the event that you ask for a doctor's facility promote away and could have been dealt with at an area closest you.

Out-of-Network Bills

On the off chance that you get a bill for out-of-system charges that you couldn't avert in light of the crisis, then it's a great opportunity to get the opportunity to work. Inquire as to whether they'll take care of the expenses at the in-system rate. Contact the suppliers and ask what the protection has officially paid and approach them to settle for that or arrange for a lower sum.

Around a fourth of US states have buyer assurance laws that confine suppliers from equalization charging in certain consideration circumstances like crises. A few laws apply just to certain wellbeing arranges or certain suppliers. Contact your state's protection division for specifics.

In the event that this comes up short, contact your protection to figure out what must be submitted to document an advance and time limits for recording. By and large, documentation from the provider(s) will be required. On account of an out-of-system circumstance, request that the specialist give a letter bearing witness to a decent confidence exertion was made to use a contracted supplier and no fair access to such supplier existed.

Be Careful Buying A Used Car That May Have Been A Flood Victim

As of late, we saw an immense surge in Louisiana where somewhere in the range of 20,000 individuals must be cleared. Some say it wasn't the ever-dreaded 100-year surge, more like the 1,000-year surge. 10s of a large number of homes have been red hailed and are presently dreadful, base gone, schools demolished and enormous quantities of autos absolutely submerged. We should discuss this.

One of the numerous stories in the media originated from NBC News; "Louisiana Flooding Far From Over Despite Expected Respite From Rain," by Cassandra Vinograd and Alex Johnson distributed on August 15, 2016. The story recounted families escaping, houses overflowed, covers set up and autos submerged.

As a previous franchisor of a portable auto washing idea, I can review the immense quantities of overwhelmed autos appearing at auto barters, requiring itemizing and cleaning - continually thinking about whether the purchasers would be advised by the utilized auto dealerships purchasing these autos, maybe delivering them out West to California. At a certain point around 10-years prior the issue got so awful that the US government needed to venture in and make laws to shield customers from this fake movement. 100s of a large number of autos have been considered overflowed and in this way squashed for scrap - insurance agencies not able to re-offer those autos at sales.

Not very far in the past, I was helped to remember this law with a story in the Charleston Gazette-Mail titled; "WV law shields customers from accidentally purchasing surge harmed autos" Phil Kabler distributed on July 17, 2016 which expressed:

"With potential for vehicles harmed in the June surges to appear available, West Virginia customers can take comfort in knowing state law requires automobile merchants to give guarantees on vehicle deals, and precludes offering vehicles that have been submerged without a rescued title. 'With current law, in the event that you purchase a vehicle and it winds up having issues as a result of it, you recover your cash,' he said of surge harmed vehicles. 'With 'as may be,' you're screwed over thanks to it, unless you particularly asked, 'Was it in the surge?' and the merchant misled you."

Fortunately, there are presently standards, directions and laws set up to secure auto purchasers and customers. On the off chance that you are going to purchase an utilized auto, get some information about its history, particularly if the auto has ever been in a surge. You have buyer rights, essential ones, and new rights that buyers two or three decades prior didn't have, and paid for beyond a reasonable doubt. It would be ideal if you verify whether the utilized auto you are purchasing is to be sure fit as a fiddle and has never been submerged.

Most Common Car Insurance Discounts

The reports list a variety of use classes and normal sum, yet they stay substantial markers of how costly collision protection can be. It deteriorates when driver falls under high-hazard classification. A high-hazard driver is one who has inclination to document asserts more frequently than a normal individual because of history of intermittent inclusion in mishaps, absence of experience in the driver's seat, vision weakness, and awful financial assessment. Collision protection organizations see high-hazard drivers as undesirable clients. More claims mean more payout, and this is terrible for organizations. Be that as it may, there are a wide range of approaches to lessen auto protection premium whether a driver is high-hazard or generally safe.

Comprehend Auto Coverage Necessity

Collision protection gives money related assurances through scope. There is particular sort of scope for an alternate arrangement of dangers for cases Bodily Injury and Property Damage, Collision, Comprehensive, Personal Injury Protection, and Roadside Assistance. Some of them are obligatory by law, while others are discretionary. Obligatory scope is unavoidable on the grounds that all drivers must have the capacity to create substantial evidence of protection when a cop requests it. Inability to deliver the confirmation is deserving of fines, driver permit suspension, and correctional facility time.

Discretionary scope is omissible from collision protection approach. It is best to comprehend what every scope sort does to settle on the right choice. For instance, an old economical auto that would not be excessively expensive, making it impossible to supplant does not require far reaching protection. After some careful computations, the premium and deductible for the scope can cost more than the estimation of the auto. Conversely, another auto that is worth more than ten times of the premium can simply utilize both Comprehensive and Collision.

Notwithstanding the auto model, please ensure that all scope sorts in the arrangement are important on the grounds that exclusion of pointless scope can spare a considerable measure of cash. An exchange with an autonomous operator can help anybody decides the right protection for their requirements.

Cut the Premium yet Not the Coverage

Not all drivers can manage the cost of the most finish protection arrangement or need the same sorts of scope. A protection approach that comprises of just the state's base scope necessity costs not exactly those with some discretionary assurances in reality, however it doesn't imply that everybody ought to slice the scope to spare cash. One of the least demanding approaches to lessen premium without exclusion of scope is to exploit protection rebates. Accident coverage premium can look extravagant, however diminishment from a few rebates cut great measure of the expense. There are three fundamental sorts of protection rebates: Vehicle Discounts, Driver Discounts, and Policy Discounts.

1. Vehicle Discounts

Premium lessening is accessible for those whose vehicles meet and surpass the necessity for wellbeing principles. Vehicles with hostile to robbery and detached limitation framework are the absolute minimum prerequisites for qualification. Some new vehicles accompany these security highlights as standard alternatives, so there is no compelling reason to buy and introduce post-retail parts. Other security highlights incorporate VIN, electronically monitored slowing mechanisms, and steadiness control. Every one of those increments forestall wounds and mishaps out and about; collision protection organizations acknowledge and reward drivers' endeavors to stay safe. On the off chance that the supplier does not offer the rebates, buyers ought to request this.

2. Driver Discounts

Qualification fortification driver rebates rely on upon the drivers' profiles. It has nothing to do with vehicle security highlights. A few prerequisites for driver rebates are as per the following:

· Completion of Defensive Driving Course: the course instructs drivers to drive safe and maintain a strategic distance from contribution in mishaps all the time paying little heed to the street conditions.

· Safe Driver: after a time of sans ticket or mischance free, some protection suppliers remunerate the drivers with rebates. The period can be unique in relation to supplier to supplier.

· Low Mileage: in the event that the customer permits, a protection transporter can introduce mileage indicator on the vehicle. Drivers with low mileage implies they invest less energy in the street, consequently generally safe of mischances.

· Loyal Customer: a policyholder who stays with the same bearer for a few periods can be qualified for this markdown.

· Good Student: young driver who accomplishes decent evaluations at school or school is qualified for premium decrease also.

At the point when life conditions change, a driver who already was ineligible for rebates can request decreases the length of he/she can indicate legitimate evidence of qualification.

3. Arrangement Discounts

Not at all like driver and vehicle rebates, the qualification for approach rebates relies on upon how a client buys the protection. Basic qualification prerequisites include:

· Full Payment: a few organizations offer numerous installment alternatives. A client who pays the whole cost forthright merits a value lessening.

· Multi-Car: a client who has two or more autos in the same approach is qualified for lower cost, as well.

A few organizations offer a considerable rundown of rebates, while others just have a few fundamental alternatives. Kindly do an online research or counsel a free specialist to get the most out of the protection approach. Rebates turn out to be more imperative when a driver is high-hazard. Much of the time, a high-chance driver must gain protection from non-standard business sector with higher premium than normal. An organization that merits a look in this circumstance is Good to Go Auto Insurance, a non-standard supplier who offers simple endorsement for high-chance driver and a lot of rebates.

Tips to Trust Building on Cross Cultural Teams

Does every one of your workers believe your choice and quality your organization with their head and heart? Shouldn't something be said about representatives working from seaward areas? Assembling enough trust among representatives is basic to the accomplishment of any trying business. Be that as it may, things can get somewhat confounded when you are hoping to make your nearness felt over the globe. What works in the US won't do in India and the other way around. In any case, given the chances of a worldwide business sector, it is important that organizations and brands discover an exit plan.

Building connections gets harder with multifaceted groups as it is anything but difficult to confound aims and get wrong supposition in the absence of virtual signals. The main distinction is the style of correspondence. At a few sections of the world, individuals like to mingle more than others before getting right to business. Time, patterns, political perspectives, way of life and business sector conduct further confound things. Things being what they are, in what manner can pioneers of multinational/multicultural groups try to utilize differences further bolstering their good fortune without neglecting to the difficulties?

Make a win structure for group building

As per the mainstream authoritative conduct researcher, Dr. Richard Hackman, the perfect approach to guarantee culturally diverse group building achievement is by making beginning molding. This would imply that the whole group has a convincing and clear heading to endeavor towards. Associations ought to share over all assets and data crosswise over geologies to fill each representative about the board's plans. Individuals with the perfect specialized aptitudes ought to be utilized more as a part of worldwide smoothness and building social knowledge. It is additionally vital to manufacture a staff that is adaptable, inquisitive, keen and sincerely steady. Web preparing and courses will frame a part of the excursion today.

Understanding multifaceted cosmetics

To end up a powerful pioneer of a multifaceted group, you have to see each "flaw line" made by contrasts in dialect, thinking and culture. A uninitiated group that comprises of Germans, Koreans and Americans would be a tripwire! While Germans would be agreeable in giving and accepting direct negative criticism, it could be a debacle with Koreans. As a pioneer, you ought to be prepared for these strains and understand them quickly.

Aside from social contrasts, it is likewise beneficial if the pioneer additionally comprehends contrasts in identities, age and sexual orientation. You can't anticipate that an Indian representative will quickly adjust to a more drawn out working day in Germany.

Setting clear standards and adhering to them

Culturally diverse groups can be both resources and liabilities as they acquire a wide assortment of working styles. Add individual inclinations to the blend and things can get truly befuddling. It is along these lines important that the group pioneer chalks out clear standards that are required to be trailed by everybody - paying little respect to the individual bowed. So, it will be best to consider what will work best for the whole group as opposed to forcing your very own decisions and work styles. For individuals that think that its hard to hold fast to the standards because of their social bowed, some additional sessions, extra correspondence and suggestive preparing will be the answer. A customary inflow of video chats, video meetings, email upgrades and meeting room examinations will remunerate the separation boundaries between groups.

Take a stab at building an individual association

It needn't bother with exploration to discover that the best apparatus to battle diverse contrasts and clashes is by making an individual bond between colleagues. In any case, distinctive societies have diverse go up against relationship building. Brazilian workers can get to be companions overnight however it will require a considerable measure of investment to pick up the trust of a British group. It is in this manner important to cultivate a compatibility at every stage and each day of working. It is the occupation of the pioneers to discover the chances of correspondence. Maybe a worker is additionally enthusiastic about photography and would love to have his work included in the site. Get-togethers of this sort can help a great deal in drawing in better correspondence and acquainting colleagues crosswise over societies with each other. The advantages circle back straightforwardly to the profitability.

Address clashes without even a moment's pause

Clashes, particularly with regards to multifaceted groups, don't should be closed down and kept in the basement. While contrasts in assessment are unavoidable when you are working with such an enormous gathering, you ought to likewise guarantee that contentions don't develop to a degree that they will be difficult to oversee. The pioneers ought to serve as a social scaffold and be prepared to start a plain gathering exchange and hear out everybody. Toward the day's end, there ought to be no show! In the meantime, regard everybody as equivalent as everybody prizes a law based authority.

In some cases, you should take a long lunch to comprehend somebody and in some cases it is the decision of the desert that opens up a man. The main thing that is regular in a culturally diverse group is the brand name. Workers, crosswise over society, need to feel regarded to be partnered to your image. There is a pragmatic advantage of letting your gatekeeper down some of the time to assemble multifaceted connections, particularly when hoping to benefit as much as possible from a developing business sector. The relationship demonstrations like protection against the work nature of the abroad group. Nobody needs to lose validity and a decent companionship!

Online and in-house preparing and talks can pilot an activity that aides everybody get in agreement. On the off chance that you went by a Burger King outlet in another nation, you would expect the same taste, representative help and work process as it is at home. All things considered, this won't be conceivable until and unless the administration of Burger King takes after the same rules around the world. It however needs inspiration to make things work and bring individuals under the same umbrella. An effective brand is one which has possessed the capacity to achieve a position where it effortlessly influences the advantages of social differences, as opposed to attempting to moderate the difficulties.

Understanding Over 50 Life Insurance Comparison

Who says that the life insurance will only be able to be purchased when you are still at your productive age? Actually, there are also over 50 life insurances which will make you have a good time of ensuring your future. Now, when you want to deal with this life insurance, you surely need to make a good over 50 life insurance comparison so you can find the best insurance. The best insurance will provide you with more ensuring future so your beneficiary will get the best benefits from what you have let.

This kind of insurance exists for some reasons. First of all, most people will forget about their financial management in young age because they tend to have fun with their money. When the old days come, people’s minds change to be more preventive because they have to deal what they will face in the future. They will have to think about the money for their family in the future or the money which is used for ensuring their funeral. For that reason, in the old days, people often find this insurance and making the over 50 life insurance comparison.

How to Take Over 50 Life Insurance?

In the first step, you should know which one that should be taken when you are dealing with insurance. First, you should see the type insurance which you take. In over 50, you can get the term life insurance which commonly will reach certain period of time in your age. There, you will have maximum payment and regular payments for ensuring that you’re insurance will mature soon. You should also take a look in this maturity time for the insurance in over 50 life insurance comparison so you will get the best benefits. You should get the fastest one because your time is limited when you are over 50.

Consideration in Over 50 Life Insurance Comparisons

Now, when we perform this insurance, we should have some considerations to take. Now, I will mention the consideration which you have to take when you are making the over 50 life insurance comparison. First, you need to know how long the insurance which you have purchased will cover your beneficiary. Most of the time, this insurance takes shape in term life insurance where the owner or policy holder will predict their period of being productive in the old days. When you have predicted it, you need to find the best length of time for the coverage.

You should see in the coverage which is offered by certain insurance agency. Here, you need to make an over 50 life insurance comparison based on this coverage matter. This coverage matter will deal with certain aspects in your life. You have to make sure that the coverage will hit right in the most important thing that you need in your future. For example, you need to find the comparison of over 50 life insurance which focuses on giving the best education for your children in the future.

You also need to ensure the quality of the insurance agent in the over 50 life insurance comparison. Here, you should not deal with newly born insurance agency because you will find some trouble because they have less experience. The best way is to find the insurance agent which is credible and has been established for a long time in that business.

The last thing which comes to your consideration when you make over 50 life insurance comparison is the payment. You have to see that the payments which you have to pay will not bother your daily need. You need to ensure that the money which you pay is actually your saving and it does not make your need in daily life get troubled and you have to force for being thriftier or stingier.

Those are the things which you need to know when you want to make over 50 life insurance comparison. Having this great comparison in over 50 life insurance will make you have better step in choosing. Choosing the right insurance provider is your main purpose here because different provider will also give different benefits. The most beneficial one is the one which is the best for you and the benefit will also depend on your need too

Life Insurance: Incurable Disease Doesn’t Cancel Your Options

Your life insurance policy can be a valuable resource if you are diagnosed with a terminal illness. If you do not have life insurance at your time of diagnosis, it is unlikely that you will be able to purchase a policy. But If you already have life insurance, incurable disease can pose less of a financial burden on your loved ones.

With existing life insurance, incurable disease and its outcome can be financially mitigated. Your life insurance policy will provide income for your survivors. In addition, you may be able to access a portion of your death benefits while you are still living to fulfill a dream of yours or to cover necessary expenses. 

Guaranteed insurability rider

Insurance companies regard a terminal illness as an obvious risk. If you try to purchase new or additional coverage for life insurance, incurable disease will almost definitely stand in the way. However, if you purchased a guaranteed insurability rider when you purchased your policy of insurance, incurable disease may not be a factor; you may be able to purchase additional benefits without proof of medical insurability. 

Change your dividend option

If you receive annual dividends from your life insurance, incurable disease may not prohibit you from purchasing more life insurance. If your current dividend option is to allow dividends to accumulate, or to use dividends to reduce premiums, you will probably be able to switch to a paid-up additions option. You would then be able to use the dividends to purchase on yourself additional fully paid-up life insurance, incurable disease not being as issue as you would not need to provide proof of medical insurability. 

Buy credit insurance

If you are still employed and take out a loan for an expensive item, you might be able to purchase credit life insurance, incurable disease and resulting death being the reason that the insurance will probably need to pay off the balance of your loan. 

Your company's program

Your place of employment may allow you to purchase additional life insurance, incurable disease not being a factor because you are not required to provide proof of medical insurability. This option may be available only during open enrollment, or perhaps at any time..

More income for your survivors

If you purchase more life insurance, incurable disease and your resulting death will have less of a financial impact on your survivors. Although this will raise your premiums, it should be considered seriously to achieve the maximum level of coverage possible. 

Cash surrender value

If there is a cash value to your insurance, incurable disease may not stop you from using your policy as collateral to get a loan from the insurance company. While this will give you cash in the short term, bear in mind that a loan against your policy will decrease the death benefit and cash value of the policy. If your life insurance policy has a cash value component, you may be able to get a loan from the insurance company using your policy as collateral. Keep in mind, however, that taking a loan against your policy will reduce the death benefit and cash value of the policy.

Accelerated death benefit rider

If you there is an accelerated death benefit rider on your insurance, incurable disease may not prohibit you from being eligible to access a portion of the policy’s face value before you die, either in installments or in a lump sum. You can use this money however you want, and if you are expected to die within 24 months, the money will not be taxed. If you prefer, you can take a portion of the funds so there will be some left for your survivors. 

Sell to a viatical settlement company

If you sell your policy to a third party, most often an investor-owned viatical settlement funding company, you will receive some 40-85% of the face value of your insurance, incurable disease notwithstanding, and you can use the cash payment as you see fit while you are still living. If you do not spend it all, you can leave the remainder to your beneficiaries through your will. You will not pay taxes if your life expectancy is less than 24 months.

LIC Bima Diamond Money Back Plan 841

LIC Bima Diamond Plan Details

LIC Bima Diamond plan is the new Money Back insurance policy from LIC of India. It is a non-linked, traditional money back insurance policy. This plan provides financial support for the family not only during the policy term but also beyond the policy term during Extended Cover period.

Bima Diamond is the new money back plan of LIC in 2016. In the beginning of the year, the LIC has launched the LIC Jeevan Labh, LIC Jeevan Shikhar (Closed now) and LIC Jeevan Pragati.

LIC Bima Diamond Plan Features

LIC Bima Diamond Plan Benefit & Features

Minimum Sum Assured

The minimum sum assured for the LIC Bima Diamond Plans should be Rs 1 lac.

Maximum Sum Assured

LIC Bima diamond plan offers maximum Rs 5 lacs of Sum Assured. You cannot take sum assured of 5 lacs under this plan. For more sum assured you can take LIC Endowment Plan 814.

Policy Term / Premium Paying Term

16/10, 20/12 & 24/15 years where 16,20 & 24 is Policy Term while 10, 12 & 15 are premium paying term.

Minimum age at Entry

LIC Bima diamond is a Money back plan so you can take it for your son or daughter who are older then 18 years or for yourself. The minimum age for this policy is 14 years (nbd).

Maximum age at Entry

16 Years Policy Term : 50 years (nbd)

20 Years Policy Term : 45 years (nbd)

24 Years Policy Term : 41 years (nbd)

Maximum age at Maturity

16 Years Policy Term          : 66 years (nbd)

20 & 24 Years Policy Term : 65 years (nbd)

Extended Cover Period

Bima Dimaond covers extended cover period, i.e for 16/10 years term policy extended cover would be next 8 years i.e. you will be covered for 24 years while for 20/12 policy you will be covered for 20 years & for 24/15 plan you will be covered for 36 years. This period starts after elapsation of  policy term and applicable for inforce policies as on the date of maturity.

Date of Commencement of Risk

Under Bima Diamond plan, risk will be immediately commenced from the date of issue policy.

Date of issuance of policy is a date when a proposal after underwriting is accepted as a policy and the contract gets effected between LIC and Customer.

Auto Cover 

Auto Life cover is provided for 2 years even if the premium is not paid. This benefit will be extended only if 5 policy years are completed.

LOAN

Loan facility is available in this plan only after payment of premiums are paid at least 3 full years with few below conditions:

For Inforce policies : Upto 90%

For paid up policies : Upto 80%

Percentage may vary time to time. For more details contact us.

Death Benefits in LIC’s Bima Diamond

In case of the death of Life Assured before the date of Maturity

During the first 5 policy years “Sum Assured on Death” will be paid to the nominee in Bima Diamond.

After completion of 5 policy years but before the date of maturity: “Sum Assured on Death” and Loyalty addition (if any) will be paid to the nominee of the Life Assured.

The death benefit will not be less than the 105% of all the premium paid in the policy as at the date of death of the life assured. (The premium referred above will not include any taxes, extra amount charged due to underwriting decision and rider premium, if any.)

In case of the death of Life Assured during the extended cover period

An amount equal to 50% of Basic sum assured will be paid to the nominee.

LIC’s Accidental Death and Disability Benefit Rider

If this benefit is opted for, an additional amount equal to “Accidental Benefit sum Assured” is Payable on death due to Accident, provided the rider is inforce at the time of the accident. In the case of the accidental permanent disability (within 180 days from the date of accident) an additional amount equal to “Accidental Benefit sum Assured” is Payable in equal monthly installments spread over 10 years. The future premium will be waived for the accidental benefit rider and premiums for the portion of Basic sum assured will be waived. This rider can be taken at the inception of the policy or before the premium term is over.

LIC’s New Term Assurance Rider

If this benefit is opted for, an additional amount equal to “Term Assurance Rider sum Assured” is Payable on death to nominee, provided the rider is inforce at the time of the death of the Life Assured. This rider can be taken at the inception of the policy.

Survival Benefits in LIC’s Bima Diamond

If life assured survives to the specified duration during the policy term, then a fixed percentage of Basic Sum Assured is  will be payable to the life assured. The fixed percentage in various terms are mentioned below:

Bima Diamond Money Back

Guaranteed Money back every 4 Years, during the policy term. Bima Dimaond Money back after every 4 yrs 15% in 16 and 20 yrs term plan  and 12% of BSA (Basic Sum Assured) in 24 yrs term.

Example:

For Policy Term 16 years :
15% of BSA at the end of each of 4, 8, 12 policy year. It means if you have taken a Sum Assured of 5 Lacs, you will get 75 thousand 4th, 8th & 12th policy year.

For Policy Term 20 years :
15% of BSA at the end of each of 4, 8, 12, 16 policy year. It means if you have taken a Sum Assured of 5 Lacs, you will get 75 thousand 4th, 8th , 12th & 16th policy year.

For Policy Term 24 years :
12% of BSA at the end of each of 4, 8, 12, 16, 20 policy year. It means if you have taken a Sum Assured of 5 Lacs, you will get 60 thousand 4th, 8th , 12th, 16th & 20th  policy year.

LIC lic-bima-diamond-money-back-plan-841-presentation

LIC Bima Diamond Money Back Plan 841 Presentation

LIC BIMA Diamond Money Back Plan 841 Presentation from Satyendra Gupta - 9811362697

If the Life Assured survives till the end of the policy term, “Sum Assured on Maturity” along with Loyalty Addition, if any will be payable to the Life Assured.

Where “Sum Assured on Maturity” in LIC Bima Diamond 841 is

55% of Basic Sum Assured in policy term 16 years

40% of Basic Sum Assured in Policy terms 20 and 24 years.

Optional Benefits in LIC’s Bima Diamond

Proposer can opt for the optional riders by payment of additional premium. Benefits under the optional rider will be available during the policy term only.

LIC Bima Diamond Premium Rates

LIC BIMA DIAMOND PREMIUM CHART 841

LIC BIMA DIAMOND PREMIUM CALCULATOR

Practical Ways To Increase Our Income

The road to financial independence is sometimes not an easy one. Many people in the past such as my parents' generation born in 1950s-1960s were savers. They work hard, they save money and never really had much luxuries. Life was simple back then. However, you would have realised that the baby boomers generation still did not have much savings. This is after working hard and saving money all their lives. Why is this so?

The reason is simple, most of them could not increase their income due to circumstances back then. Some of them had to quit school early to work in order to supplement income for the household. Singapore was also transforming fast during the 1980s and 1990s which means jobs were changing fast too. Some were left stranded with their skills and experience being made redundant and this caused them to suffer wage cuts or stay stagnant in their career.

Income is an important factor on the road to financial independence. You can be saving 50% of your income but if you earn only $2000, that is just $1000 savings which is not a lot. Furthermore, if you want to start a family or have kids, it is quite hard to save if you have a low salary. I have been focusing on increasing my income which I see it necessary if I want to achieve financial independence earlier. It may take years and a lot of hard work to increase income but it will all be worth it in the end.

If you're looking at a career switch or to upgrade your skills for more income, this is the post for you.

Ways to increase your income

Find A Job You Really Like - Mid career switch is possible too

If you hate your job, most likely you're not going to do well in it. Passion has created success for many people as they no longer feel a burden to work. People with passion tend to excel in their work and create more income for themselves be it in their career or business.

The problem with finding a job you like is when we were younger, we may not have chosen the right course to study and thus not able to enter the industry we want. We may have spent $25,000 on a university education which we realise we didn't like at all. When we enter the industry we don't like, we may want to change.

With the most recent statistics by Ministry of Manpower that the unemployment rate has risen and more workers have been retrenched, it is all the more vital to know how and where to acquire the right skills. Some sectors are still lacking in manpower and in this competitive environment, without the relevant qualification, it may be hard to change industry. However, we can actually get some help in this. I too may want to change industry so I've been looking at some relevant courses to gain better competitive advantage. To my surprise, I found various schemes which are really quite useful. In this blog post, I'll list down some schemes which I found that will help us progress better in our career:

U Future Leaders Programme 

(U Future Leaders Summit 2015 speaker line up) 

This is a programme where there are a series of seminars, conferences and mentorship sessions to help us up-skill and even gain access to useful networks.

It comprises of:

1) Future Leaders Summit - The  flagship conference featuring speakers such as the CEO of DBS, Managing director of LinkedIn, vice president of amazon etc.

2) Future Leaders Mentorship - Where industry leaders conduct mentoring sessions in a small group setting behind closed doors to help PMEs in their personal and career development.

3) Future Leaders Sectorial Programmes and Series – These are sector specific such as young engineers leadership programme, aspiring HR leaders programme, finance operations development programme and many more.

Funding for courses

This to me is the best funding for courses I've ever seen. On top of the $500 SkillsFuture which we know of, there are actually a lot of courses which are heavily subsidised for Singaporeans and PR.

Let's take for example you're seeking a career in project management, you would most probably need to be PMP certified which a lot of project management job position requires. PMP stands for project management professional. The PMP® designation is recognised worldwide as the standard of the profession.

The normal course fees for a PMP certification course would cost $2675. I did a search and found the course on NTUC learning hub website with the breakdown of the course fees. Here is a snapshot for your reference:

As you can see above, if you're a Singaporean or PR, the course fees reduces to $1129.75 as compared to the original course fees of $2675. If you're age 35 and above, you get even more subsidies that the course fees comes down to just $100-$200+ dollars. Don't forget we still can use our $500 skillsfutures credit to offset the course fees so in the end we don't really have to pay much for the whole certification course.

To remain relevant in the workplace, Singaporeans have always been encouraged to upskill. Labour chief Chan Chun Sing even said “As our economy transforms, more and more of our people will be in the PME sectors, and it is also NTUC's job to make sure that we help our PMEs remain competitive and stay ahead of the competition."

Aside from the $500 SkillsFuture credit given to all Singaporeans which can be used on a range of 10,000 courses, there are actually so many schemes to subsidise course fees for us. Some of the schemes are workfare training support scheme and SkillsFuture Mid-Career Enhanced Subsidy. If you're an NTUC member, you can also get further funding under the Union Training Assistance Programme (UTAP).

If you're interested in short courses such as communication skills or WSQ certified courses, I saw some by NTU which are quite interesting. Courses such as negotiation skills, or even WSQ Apply Statistics for Lean Six Sigma. More information on the short courses by NTU can be found here. There are also subsidies and SkillsFuture credit can be used.


Place and Train Programme

Lastly, I also noticed that there is this place and train programme under WDA where it enables companies to hire workers first, then to provide them with structured training to equip them with relevant skills and knowledge.Under the programme, the trainees do not pay any fees as their training will be supported and co-funded by their employers and WDA. These trainees will also receive their salaries as usual, as they are already employed once they join the programme.

There is a whole list of conversion programme where we can switch our career to. We get employed and we get the training without any cost.

Since 2008, NTUC’s e2i has also worked with various industry partners to create over 50 Place-And-Train programmes.

Getting relevant certification will help us to increase our income. The courses will also help us if we want to make a career switch into something we feel more passionate about. With the heavily subsidised courses, I think all of us can look to upgrade our skills and increase our income. Also, with programmes such as the place and train programme, switching career is no longer just a dream. There are many ways to increase our income. By just knowing more about the schemes available, we can see a better light for our career and also able to seek a passion which we yearn for.

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Is Buying High Dividend Stocks A Wise Choice?

I've been very busy the past few weeks and have not been blogging much on investments. My apologies to readers who want to read more on investments here. In the midst of investing for the past few years starting from 6 years ago, to be honest, it was not always a smooth sailing one. I have made mistakes, learnt from it and moved on. To date, I've come to realised my own investment style and manage my risk accordingly. There are stocks which has huge percentage loses in my portfolio but because they make up only 1-2% of my entire portfolio, the losses are really negligible in monetary terms. If I had invested heavily in those stocks, I would have lost a lot of money. Even after 6 years of investing, I'm still learning the ropes of it. Market has been relatively sideways with a few irritional downward spins which presents good opportunities.

Buying high dividend stocks has been a favourite among Singaporeans. REITs are very popular here because of the higher dividend nature. But, is buying high dividend stocks a wise choice? In this post, I will back test a few high dividend stocks and see the returns we would have (inclusive of dividends) if we had invested at that time.

Let's start of with a popular stock, Capitaland Mall Trust:

Capitaland Mall is a sideway stock where the price have not really increased for the past 5 years. Let's take for example if we had invested around the mid price of the chart in 2012 where the small hand is, the price bought would be 1.925. The price now is 2.14 so there is some capital gains but not much. It would just be 11.25% gain in 4 years. But, if we had added in the dividends received, the gains would increase to 34.54%. This shows that the dividend received makes a difference if we had bought this stock.

Now, what if a stock price has dropped over the years but this is a high dividend stock? Would we still have profits? An example is Hutchison Port Holdings trust which was a high dividend stock many years ago. However, its stock price dropped by almost half in the past 4 years.

Now, if we had bought in 2012 at around 0.75, would we still have profit today? The answer is no. At one point in time, this stock was giving as high as 10% dividend yield. If we had invested back in 2012, the losses would have been more than 40%. But, if we include dividends received, the losses would reduce to about 10%. This seems like dividends still do make a difference.


Buy dividend stocks but don't look at dividend yield only

Dividends can definitely get us more money in our investment portfolio but it would be pointless if the share price drops too much that the dividends collected don't even cover the losses due to drop in share price. The best combination would be the share price increases and we still get dividends. In such scenarios, we can expect the dividends to increase too if the company is making more money and wants to reward shareholders.

In investing, we can look at a few other key statistics in order to invest at the right price. They include:

1) Valuations such as Price to Earnings, Price to Book
Read: Buying the company on the streets (Part 2) - When to buy?

2) Industry outlook and Economic Moats
Read: How to pick stocks (Part 1) - Economic Moats

3) Track record and profit growth
Read: How to pick stocks (Part 2) - The profitability of a business

A point to note is that there is no holy grail to investing. Over the years, I realised even if we follow another successful investor's style, we may still not be successful in investing. This is because no two investor will have the same capital or the same portfolio for investing. Everyone of us invest different amounts to each individual stock and also have different number of stocks in our portfolio. For example, investor A may invest $5000 in a stock and investor B also invest $5000 in the same stock. When the stock price drops by half, each of them looses $2500. However, the difference is investor A has a $100,000 stocks portfolio while investor B only has a $10,000 stocks portfolio. In this case, investor A looses only 2.5% while investor B looses 25%.


How I manage Risk in my stocks portfolio

I've also come to realise that risk management is very important in stocks investing. How I manage risk is simple, if I feel that a certain stock is my portfolio is risky, I will reduce my exposure in it. Risk can be in the form of declining profits, poor industry outlook, uncertainties and poor balance sheet. There is always an opportunity with under-performing stocks but my personal preference is not to have too much exposure in it. That's why some people say its a punt for speculative stocks which is risky by nature.

For stable stocks and those with a strong balance sheet, I would increase my exposure in it. But, this is bearing in mind that I do not buy the stock at a high price base on the valuations. It is important to understand how to read financial statements and determine if the company is worth buying at that price. We can use ratios such as PE, PEG, Discounted cashflow/earnings, PB etc to determine valuations. This has to be reviewed periodically as things could worsen in the future.

One stock which I've held on and increased my exposure to a large extend is Saizen Reit. This Reit has relatively good dividends at about 7% and stable growth. The rationale is simple, this is a REIT which owns and rents out residential properties in Japan, is undervalued and also Japan was starting to do a major QE at that time. Rental residential properties are in demand in Japan because of the high price of properties there. It is also much more stable as compared to retail or hospitality which can be affected by economic conditions easily. Saizen Reit has since been acquired and reverse take over by another company which sent the share price up.


Is Buying High Dividend Stocks A Wise Choice?

So Is Buying High Dividend Stocks A Wise Choice? Dividends can indeed boost the returns in our portfolio and also provides an additional source of income. It can be quite significant if we have a large investment capital to begin with. Some of my other blogger friends have more than 5 figures a year for dividends.

But don't just focus on dividend yield alone. If the stock price drops too much, it is not a wise choice then. Learning to pick good dividend stocks is the key.

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The most expensive insurance in football

Insurance is the most important thing that every one needs to have. Home insurance ,body part insurance is better to solve a plenty of problems.Moreover, if you are a well-known person in society you obviously have a lot of income ,a lot of assets and you definitely need high insurance.
Celebrities have saved their body parts or voice by insuring their body parts or voice .This is not new it exists from decades earlier.The below are the some of the most expensive Athletic insurance in football.

1.Lionel Messi
His pair of legs when La Pulga is listed as the most expensive ever insured football players, i.e. up to $126.306 billion per year.Unfortunately the world footballer of the year four times this should injury against Real Betis.He won to become the most expensive insurance with a foot in the world.

2.Cristiano Ronaldo
The second leg of this lin Cahn ya, he scored some fantastic goals.Players of Real Madrid's midfield mainstay has scored a hattrick when Portugal meets with Sweden on Tuesday(19/11/2013). An attacker who paid very high in this world is indeed a rare injury. To keep the worst thing that may happen due to the foot injury ,the stars are insured with a value of $18.044 billion per year.

3.Wayne Rooney
It looks like Manchester United due to acute injury kapok experienced 'Wazza' in the period 2004 to 2006.Finally, in 2007, the Manchester United and Wayne Rooney agreed to insure both legs worth $70.346 million.

4.Iker Casillas
Not just the strikers and midfielders goal keeper are also not to be outdone by insuring both hands.The boyfriend of Sara Carbonero is indeed very proficient in keeping Real Madrid goal, no wonder she mengansurasikan both hands valued at $1.727 billion.

5.Neymar
A young player who recently joined the Barcelona striker's injury seems to be blocking career Cem erlang NYA.The second leg of the Brazilian striker is paid to insurance companies worth $2.615 billion.

6.Manuel Neuer
Manuel Neuer who is the good German Football Player has made insurance to his hands for $4.3 million.His extraordinary performance in his earlier career has given him a good scope to insure his body part.

These Athletic insurance have become as a publicity stunt or to get a lot of money on injuries.Getting insurance to our body parts is always a good thing and should not be ignored.The above mentioned are the most Athletic Insurance in football.Not only in a football field in almost every field well-known people insures their body parts for future benefits.

How To Talk To Your Bf/Gf About Money

Money may be a difficult topic to bring up with your significant other. One of my blogger friend, Lionel from cheerfulegg, has written this guest post exclusively for SG Young Investment. Even I learnt a few tips here. He definitely has gone through this stage with his partner. Enjoy the read!

Every Singaporean couple can easily tell whether they’re in a serious relationship: It depends on whether they’ve had The Talk. You know the one I’m talking about: The one when the guy takes the girl out to a fancy restaurant, takes her by the hand, stares deeply into her eyes, and asks: “Sooooo... Do you want to apply for BTO in Punggol or Sengkang?" Okayyyyy. Things are getting serious here. But what if, after having The Talk, you found out that your girlfriend wants a $110,000 wedding? Or what if your boyfriend insists that he wants a $1M condo - something you know that you can’t afford? Would you break up with him or her? Are you letting money come between you and your partner? Are you putting a price on love?

The Truth About Money And Relationships

Many of us don’t like to talk about money - especially with those closest to us. For example, does your boyfriend know how much you earn? Does your girlfriend know how much you give your parents every month? Have you both talked about the right time to buy a car? Going over these topics can make us uncomfortable, because we’ve been taught by Hollywood that love should overcome all obstacles. It’s okay if your boyfriend racks up $10,000 in credit card debt every month, because hey, you love him, right? The truth is, money has the power to bring a couple closer together, or tear a relationship apart. For example, check out this story about a Singapore couple who spent $110K on their wedding. To pay for the costs, they racked up credit card bills and borrowed from licensed moneylenders. Their expenses for a single day wrecked havoc on their relationship for years:

Trying to clear the debts has put a strain on the marriage and their relationship, Mr Lee said. "I think we have had more fights since we got married than in the six years that we were dating."

These fights can escalate into something more serious: 80 percent of divorced couples in their twenties and thirties cited money as the major destructive factor in their marriages. I’m not bringing these stats up to scare you away from marriage - I think it’s awesome that you’re taking your relationship to the next level. But if you really want to make this work, you’ll have to make sure you’re on the same page when it comes to money. Luckily, talking about money doesn’t have to be awkward. If you do this right, it can actually bring a couple closer together. Here’s a step-by-step guide, including the exact words to say, on how to do it:

Step 1: Talk About Your Dreams

Unless you’re a weirdo financial blogger like me, you probably don’t want to start off the conversation with something like: “Okay. Let’s make sure that we channel an additional $20,492 into our savings accounts to take advantage of the additional 0.5% interest rate." If you’ve never had a serious conversation about money with your partner, it’s probably a good idea to take it slow. Talking about your aspirations is a great place to start. You could say something like:

“Hey, so I was chatting with my colleague today who just bought a house in Tiong Bahru. Great neighbourhood, near the MRT, though slightly more expensive than he expected. That made me think about where WE might want to live in the future, if we get married. I was wondering whether you’ve thought about that before?"

The exact words don’t matter as much as the topics you talk about. Focus on the BIG aspirations - the ones that matter the most to the both of you: What type of house would you like to live in? What would your dream wedding be like? What sort of lifestyle do you see yourself having after getting married? When would you like to retire? Dig deep into the details - get your partner’s thoughts on what that house/wedding/life would actually LOOK like. Remember that it’s not an interview - you’re not there to fire question after question, which can be kinda creepy. Instead, give your own opinions while seeking your partner’s. You could say something like:

“Yes, I think this condo has a fantastic modern design too. In fact, I read this article on Qanvast about how even HDB owners are renovating their houses to make them look like condos on the inside. Do you think that’s something we could consider?"

The goal is to simply understand your partner’s aspirations and to let him or her know about yours. The more details you have, the better. They’ll come in useful for the next step.

Step 2: Research The Costs

Now that you’ve understood your partner’s aspirations, pick 2-3 ones that are the MOST important to the both of you. Then, it’s time to do a bit of homework and estimate their approximate costs. Why is this important? Because anyone can fantasize about their hopes and dreams. But when you put actual NUMBERS to your dreams, it changes the conversation from, “Wow it would be so nice to have that someday….” to “Okay, let’s figure out how to get there together." Estimating numbers might sound scary, but it’s actually a lot easier than it sounds. For example, there are thousands of articles and resources online to help you estimate the costs for any big life milestone. Here are some:

• How Much Is Needed To Get Married & Start A Family In Singapore?
• How Much Would It Cost To Travel The World?
• The Cost Of Raising A Child In Singapore
• Qanvast’s Renovation Cost Breakdown
• HDB resale prices
• What Is The True Cost Of Owning A Car In Singapore?
• The True Cost Of A Wedding In Singapore

Don’t worry about being too detailed in your estimates. Instead, the goal is to get a ballpark estimate of how much your 2-3 big aspirations might cost. This should take you no longer than 30 mins - 1 hour to research. Then, take your findings to your boyfriend or girlfriend and say something like:

“Hey, so I was thinking about our conversation the other day and how we said we wanted a restaurant wedding. I did some calculations and found that it would cost us around $40,000. I’m not sure if I estimated it right, so I wanted to get your advice. What do you think?"

The intention is not to intimidate your partner with a whole bunch of scary numbers. Instead, it’s to use the numbers as a starting point to get his/her thoughts on the topic. The goal is to get your partner to agree to have a deeper conversation about money at a later date. After looking at the numbers together, you could say something like:

“I know this is just an estimate, but it looks like a wedding with 400 guests might be more expensive than we thought. I know this is important to us, so maybe we can take some time to figure out how we can get there together?"

Re-emphasize that you’re not doing this to criticise each other, but to help you both figure out how to achieve your aspirations together.

Step 3: Talk About Money And Set Short-Term Goals

The big day is here! Block off two hours on the weekend to do this, so that you’re both relaxed and unhurried. Agree to come prepared with your bank/insurance statements, and any other financial commitments you currently have. First, start off by recapping your aspirations. Then, go through your documents together to find out what your financial situation is as a couple. Is it really necessary to bring all these documents? It might seem like a hassle, but I’ve personally I found that it helps tremendously. First, it eliminates the guesswork. You don’t have to say things like “Yeahhh… I THINK I have around $20,000 in my savings account.” A quick glance at your bank statement will tell you exactly how much you have. More importantly, it sets the right tone for your relationship. When you “bare it all”, you’re showing each other that you want to be open and honest with each other - and that will translate into other parts of your relationship. What’s next? The easiest way to start is to set some short-term savings goals. For example, if you estimate that you’ll need $40,000 for your wedding in 2 years, that means you’ll need to save $1,667 per month, or around $833 each. If that sounds too high, make a commitment to put say, $300 each into a joint savings account every month, with the understanding that you’ll increase it later as your salary rises. (By the way, if you want a quick, easy way of saving more efficiently - I also wrote a mini ebook on how to automatically save more every month, without having to change your lifestyle. You can check it out here). That’s pretty much it! The goal here is to get your partner to take action - no matter how small - towards saving and investing for the future. The simple action of actually DOING something will make you both more mindful about money.

In Short...

Talking about money may seem like a lot of effort - but trust me, it’s worth it. This could be the person you spend the rest of your life with, so why not invest a few days to get it right? The key here is patience. Approach the topic slowly, listen to each other, and focus on your hopes and dreams. This will set the stage for more open conversations in the future. And when you finally pop the question - whether it’s “Will you marry me?” or “Sengkang, or Punggol?” - you’ll both know the answer in advance.

==== Lionel Yeo is a ramen-slurper, bathroom dancer and financial hacker behind cheerfulegg.com, a personal finance blog for young executives. He has been featured on the Sunday Times, Channel News Asia, KISS 92 and more. He also secretly dances in his room. Check out his free guide on How To Start Investing In 3 Days.

Areas hit by wildfire are at risk for flood damage – are you covered?

We are reaching the end of a “normal” fire season, thanks to this year’s snowpack and spring rain. While that is good news, the more than 15,000 acres that have burned are at higher risk for flash flooding and mudflows. Vegetation absorbs water and reduces runoff that causes mudflows. Even areas that are not historically prone to flood are at risk due to the landscape changes caused by fire. Flood risk remains high until vegetation grows back, up to five years after the fire. That means that the million-plus acres that burned the last two summers are still at higher risk for flooding and mudflows. 

Photo courtesy Washington state Department of Natural Resources

Homeowner’s and commercial insurance policies do not cover flood or mudflow damage. Consumers who want to protect their property must purchase a flood policy, available only through the National Flood Insurance Program (NFIP). Most properties qualify for flood insurance, as long as it is located in a community that participates in the program.

Typically, there is a 30-day waiting period before your flood insurance policy takes effect. This time of year is a good time to do some research into flood insurance, before the fall and winter weather that can bring floods start in earnest.

More information:

• Find an agent near you who sells flood insurance policies through NFIP.
• NFIP’s Flood After Fire fact sheet
• FEMA’s Flood after Fire Risks fact sheet

Questions? Get more information about flood insurance or contact our consumer advocates.