Posts Tagged ‘insurance’

4 simple tips to save some cash

Wednesday, August 5th, 2009

I was reading an article in a female magazine, written by Kenneth Goh of IPP Financial Advisors. He suggests this 4 tips:

(1) Cancel all but one checking account

    He suggests consolidating all your checking accounts and just pick one and close the rest. Most accounts charge you a fee if you fall below the minimum deposit. Sure, it may only be $2-$5 a month, but why pay the bank money to keep your money?

    Personally I don’t believe in paying bank fees. That’s why I currently use FairpricePlus and Standchart’s Xtrasavers. They both have no minimum deposit required, and decent interest rates.

(2) Get credit cards with cash rebates

    Most credit cards have their own points system. But the thing is, if you have 2000 points, u might only be able to redeem 1500 points (eg. $10 voucher), and you more often than not will spend more than the voucher amount. Also, time is spent choosing your vouchers, and then they’ll have to snail mail it to you.

    The bigger problem however, is most people forget about their points and when they do remember, the points have expired.

    I only use cards with cash rebates. Citibank Dividend Platinium is the most straightforward one. They send you a cheque every quarter when the minimum $50 is hit.

    For those who prefer debit cards, and getting cash rebates on both signed transactions (2%) and NETs (0.5%), Standchart’s Xtrasavers account comes with a debit Mastercard. However, you’ll need to maintain a minimum of $6k in your account (which will earn interest), and your cashback is deposited on the 1st of each month.

(3) Pay for hospitalisation and surgical insurance (H&S) with medisave

    Most people I know already pay for this through their CPF Medisave. There are some who pays in cash, and if you’re one of those, you can consider switching.

(4) Pay insurance premium yearly and not monthly.

    Did you know that you pay up to 5% more when you choose monthly payments for your insurance over annual payments? This is because it costs more for the company to collect 12 payments instead of 1. Switching to annual payments saves you up to 5%.

    Divide up your annual premium by 12, and force yourself to save each month!

Do you know how much your HDB Fire Insurance actually insures?

Tuesday, July 14th, 2009

The largest premium for a HDB flat under the HDB Fire Insurance scheme is $9.75 for 5 years. Wow. I assume that it’s because of the large number of HDB flats in Singapore, and with virtually every HDB flat being covered by fire insurance via HDB’s appointed American Home Assurance Company (AHA).

It’s not a comprehensive insurance of course, as HDB clearly states on their website:

“The fire insurance policy under the HDB Fire Insurance Scheme is a basic fire insurance which covers building structures, fixture and fittings (based on current standard and specifications for HDB flats). It excludes common property vested in or held in trust for HDB and any of the current or previous lessee’s/Mortgagor’s renovations or improvements to the flat and all household contents.”

Fair enough.

I was then curious about what the coverage actually was, so I searched for it:

I have never made a fire insurance claim before, but those numbers look pretty small, and I wonder if it’s even sufficient to cover the basic building structures.