Licensed Financial Adviser Representative

„ Not solely obligated to any Financial

Institutions or Companies
Licensed
„ I represent my Client’
Client’s Interest
Financial
Adviser „ Licensed under the Financial Advisers Act on:
„ Advising
IPP FINANCIAL ADVISERS PTE LTD „ Life Policies
„ Collective Investment Schemes
„ Marketing
„ Collective Investment Schemes
„ Arranging
„ Any Contract of Life insurance

Why Licensed FAR? Investment Protection

•To promote the emergence of a single class of Planning
independent advisors

• Offer comprehensive financial planning and Unit Trusts

Whole Life
Investment- Linked
advice on the entire range of investment options Hedge Funds
Term Estate Plan
Critical Illness Will
Offshore Products
• Representing their clients, rather than pushing Income Protection Trust
Mortgage Loans
General Insurance Family Company
any particular product or service provider. Cash Management
Hospital/Surgical Business Succession
Account
Mortgage Protection *Partnership
Child Education
•Provide “ One-Stop” Service to meet investors’ Key-Man Policy *Shareholders
Endowment
financial needs Business Continuity Pension Holders
Investment Plans
Employee Benefits
Annuities

Life Insurance Group/General Insurance

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Financial Institutions
Unit Trust Funds Providers
ABN AMRO Asset Management (S)
AIB Govett (Asia) Ltd
APS Asset Management Pte Ltd
AIG Investment Corporation (S) Ltd
Aberdeen Asset Management Asia Ltd
Alliance Capital Management (S) Ltd
Commerzbank Asset Management
DBS Asset Management
Deutsche Asset Management (Asia)
First State Investments (S)
HSBS Asset Management (S)
Henderson Global Investors (S) Ltd
Invesco Asset Management (S)
Morley Fund Management
Lion Capital Management Ltd
Philip Capital Management
What Insurance
Companies Don’t
Tell You
About the speaker:
Accolades
• Court of the Table Award (2006)
• Million Dollar Round Table Award
(2000, 2001, 2003, 2004)
• Rookie Of The Year Award (2000)
• Top Adviser Award
• Speaker in “Moneysense” Program organised by MAS
& North East CDC
Local and Foreign Banks
Unit Trust Funds Providers
Prudential Asset Management (S) Ltd
Rothschild Asset Management (S) Ltd
SG Asset Management (S) Ltd
Schroder Investment Management (S) Ltd
Templeton Asset Management Ltd
UBS Global Asset Management (S) Ltd
UOB Asset Management
Xavex SICAV Singapore Branch
Hedge Funds Providers
Vega Asset Management
Fairfield Sentry Fund Limited
Man Investments Group
Platinum Capital Management
Honey Guide Inc.
James River Capital Group
About the speaker:
Mr Anthony Boon, has 7 years of experience in helping
families and individuals, plan for their future and protect
their interests.
Academic Credentials
• Certified Financial PlannerCM,
• Dip SCI (Life), SIFP (S'pore), A.S.I.I. (S'pore)
• Chartered Financial Consultant
• Fellow Chartered Financial PractitionerTM
• Associate Wealth PlannerCM
• MBA in Financial Services
Today’s Agenda
1)The State Of The Industry
2)What Insurance Really Is?
3)How Does Insurance Work?
4)Do You Own The Right Plans?
5)Do’s & Don’ts To Get Right Coverage
6)Conclusion
7)Q & A Session
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 The State of the Industry What You See May Not Be
What You Get
¾People Are Over-Insured, Yet Under-Protected

¾Don’t Understand The Products They

Have Bought

¾Maturity Values Not Meeting Expectations

¾People Buy What They Are Sold, Not What

Over They Need
Insured

¾The Worst Products Are Somehow The Most

“Popular”

¾The Best Products Are “Hard To Find”

ted
pro der
tec
Un

Actual Net Rate Of Return Cover Yourself In Case You

of Life Insurer Can’t Work Anymore
But, what if a
debilitating sickness
should strike – one not
on the list of 30
ailments included in the
critical illness cover
you bought?
How many of us could
cope with the sudden
and prolonged loss of
income if we were no
longer able to continue
working?

How Much Insurance Do

DPS Payout Scheme
You Need?

3
 AIA Warns Choice Life Clients Of
Critical Year Problem
Longer Premium Period

The Straits Times – 7 March 2003

In most cases, they may
AIA clients cry foul over premium extension
They seek a refund of extra premiums paid and firm’s word that it will honour cash have to pay annual
payouts guaranteed in documents. premiums for between
HOLDERS of life-insurance policies taken out with industry giant AIA in the 1980s are seeing red over a four and 10 years
predicament that could affect tens of thousands of Singaporeans.
longer than they
The policyholders were shocked to find that monthly premiums were still being planned initially.
deducted by Giro although they had been promised in writing by their insurance
agent that coverage would become free by now.

Poor Performance of ILPs

Business Times - 30 Apr 2003

The trickle effect

What Insurance Really Is?
Policy-holders of investment-linked insurance plans may be in for a rude shock
if they expect investment rates of return of 5% to 9% per annum. Genevieve Cua
finds out why
POOR investment returns are making the benefit illustrations (BIs) of investment-linked insurance plans
(ILPs) look more and more remote from reality.

Insurance Is J.I.C. Risk Management

Protection Against 1. Risk Retention
¾Unknown Events That Cause Large Financial Loss
2. Risk Avoidance
¾Becoming Your Family’s Burden
3. Risk Reduction

4. Risk Transfer

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 Risk Management
FREQUENCY
LOW HIGH

S
How Does Insurance
Low Severity Low Severity
E
V
E
Low Frequency High Frequency Work?
R
I Life Insurance Combines
T
Y
High Severity High Severity Investment And Protection
Low Frequency High Frequency
HIGH

Why Do Insurance Companies Cost Of Insurance VS

Love Bundled Products? Cost Of Insurance + Investment
Example:
¾Much bigger premiums (you are paying for the Male Age 30
$100,000 life insurance
protection part and the investment part)
$100,000 Term Life $100,000 Whole Life
¾Higher commissions Gives you protection Gives you protection
only and cash value
¾More fees for the insurer to “manage your money” Premiums: $250 Premiums: $2,000
in addition to providing you with protection
1st Year Commission: 1st Year Commission:
$20 - $35
¾Easier to sell! $800 - $1,500

Where Does Your Money First Year Premium

Go??? Bonds Example
Bonds - $0
Cash Value
Cash Value

$100,000 Whole Life Plan

Equities
Male Age 30 Equities - $0
Property
Property - $0
Cash
Cash - $0
Premiums Insurance
Protection

Cost of Ins Insurance Cost of Ins

Policy
Protection

$2,000
Policy $100
Commission Comm -
$1,400
Profit
Admin $200
Admin
Profit - $300

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 What Is The Worst
Thing That Can Happen
Do You Own The Right to You?
Plans ???

The Do’s

Do’s & Don’t 1. Only use insurance for protection

2. Identify each area that needs protection
To Get the Right 3. Know how much you need
Coverage 4. Find the most appropriate product
9 Price
9 Quality: definitions, terms, conditions
9 Service
9 Reputation of insurer
9 Financial strength of insurer

The Dont’s
1. Don’t Buy To Support Friends
5. Understand exactly what you have
2. Don’t Buy Because Of The Free Gifts
6. Figure out:
- What’s missing 3. Don’t Buy Because You Are Amazed With
- What’s deficient Projected Returns
- What’s too much 4. Not Necessary To Buy From “Branded”
7. Restructure your insurance portfolio Companies

8. Buy the missing pieces 5. Don’t Buy Because You Think Insurance Can
Make You “Rich”

6
Coverage – What, Who, When, Why Shattering A Myth
¾Life Protection

™ Until our dependants are not dependent

ay
to p fe
•Spouse: until his/her retirement
•Children: until they complete education d
n ee rli
you
Buy life insurance when you are
ou
•Parents: until they depart

that y le of younger because it is more

¾Medical & Critical Illness Cover
th ho expensive if you wait
™ Life Time Cover
e my the w
g th for
t te rin olicy
¾Disability Protection
p until retirement or until assets are
Sha tor people
™ Working
ife need
lprovide
yo u
sufficient alternative income

¾Long Term Care

™ Elderly Or Retiree

Insurability
„ Insure When You Are Still Healthy!

So Why Is It „ If Not In Reasonable Health, Insurer can:

„ Decline application

Important To Start Early? „

„
Load premiums
Exclude Certain Conditions

„ Especially Medical Plans

Conclusion

Thank You For Your

Do Not Buy Participation
More Umbrellas
With The Same Hole!

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Our Contact… …
Mr. Anthony Boon
Mobile – 9450 8819
anthonyboon@ippfa.com
Q & A Session
Ms. Linda Ong
Mobile – 9450 8803
lindaong@ippfa.com

Mr. Jason Tan

Mobile- 9685 9588
jasontancs@ippfa.com