|
Financial planning - the buzzword of the day that is constantly espoused by the government, key financial players, the media, and the general public. But how much is truly understood about financial planning? Do you really understand the role of insurance, and how it fits into your financial plans?
Take Charge, Plan Early. This has been the mantra of the government, calling on Singaporeans to take charge of their own financial needs, to start early in providing for their retirement. With the liberalisation of the CPF Investment Scheme and the introduction of the Supplementary Retirement Scheme last year, a tax efficient asset enhancement scheme for retirement planning, one cannot help but notice the sense of importance and urgency of the need for proper financial advice and planning. In response to the changing financial scene, insurance companies, banks and independent financial advisors have been gearing up to provide Singaporeans the tools and assistance to manage their finances better.
Why the urgency for financial planning? It is an essential process of meeting our life goals through proper management of our finances. Financial planning is necessary if we desire to improve our standard of living, decrease the probability of financial crises, protect our investments and loved ones, and accumulate wealth over time. To ensure that all these can be achieved, it is essential that we start financial planning early. And most would agree that there’s no better time to do it than now with a whole range of financial tools to choose from in the market.
Despite increasing awareness of financial planning, many of us are still confused over the different financial planning tools available or how they work. We may tend to underestimate our financial needs and make poor investment choices.
This highlights the urgency for public education on the different financial tools available in the market, and the management of personal finance to meet the needs at life’s various stages.
While banks and fund houses have traditionally been the ones to offer financial services, insurance companies have been quick to offer their products as a vital component in financial planning. Indeed, apart from the traditional insurance products that offer just protection, discerning and sophisticated consumers can also choose to buy investment-linked plans that offer protection as well as returns that are potentially higher than fixed deposits or savings.
Protecting Your Assets and Loved Ones
How then, should you go about choosing an insurance product? For the uninitiated, the variety of forms and configurations that insurance plans come in can really be confusing. With the help of a trained insurance advisor to help you understand the main features of the different plan types, one can easily recognise the suitability of the various plans. Here is a brief introduction of the different types of insurance plans you can find in the market.
|
