Discover Discuss Compare Blog About Us

Top 5 Financial Tips to help you tide across this CB period (and beyond)

Posted 15 April, 2020 by Clearly
in Finance

Yup its finally here!

Our very first post on Covid 19 – and more to come, don’t worry!

We’ve been really caught up with development of our new platform, and what an era for it to be launched, in light of whole new concept of social distancing. (Couldn’t ask for a better timing, really)

But simultaneously we found ourselves with more time on our hands during this CB, and are looking to resume posting more regularly.

As usual, let’s kick things off with a meme:
(space)

For real, you must

(space
So a clear PSA if you aren’t doing this already:

Wash your hands
Keep your distance
Wear your mask
Stay at home

Bonus: Eat your greens! (My vegan friend made me throw that in)

With that PSA over, we can get down to the business end of things.

While we are left wishing for stronger, more decisive action taken from the government, things are what they are and in all honesty, they could be a whole lot worse.

With many people losing their jobs or having their incomes cut severely due to the reduced business flow, things might be bleak on the economic horizon.

 

Which brings us back to the purpose of this article.

Inspired by our friend and industry professional Johnny Nimrod Chan, who came up with a comprehensive video about the things you can do during this Covid crisis, we’ve remastered his video and organized it down to 5 areas of Financial actions you can take.

 

1. Utilize all available government grants that are applicable to you

 

In case you didn’t know, you most probably have $600 bucks credited to your bank account already. Some of you might have already spent it, but we digress.

Besides that, there are so many other initiatives that are applicable to many of us during this period. Here are some key pictures for reference:

(space)

 

Here’s the key article to read on the gov.sg site:

https://www.gov.sg/article/solidarity-budget-2020-additional-cash-payments-to-help-families-get-through-circuit-breaker-phase

And no, they are not buying your vote in election year. (sike)

 

2. Compare Utilities packages and deals

 

With more of us staying at home and the warm weather gearing up, it is inevitable that our electricity consumption will also spike correspondingly.

If you haven’t done so already, now is a great time to check out various utility providers for their deals and promotions.

We wrote about the importance of comparing here in this unique article

 

3. Check if you can refinance your mortgage loan

 

Time for some quick maths:

How much interest can someone save, if his mortgage loan interest rate were reduced by 0.5%, assuming a loan quantum of $500,000 over 20 years, with a current rate of 3%?

If you answered: $29,633.65, then you would be absolutely right. You might also be privy to a amortization calculator, or you could simply be a genius with numbers.

Point is, with central banks all looking to flood the market with credit and liquidity, is it only a matter of time when interest rates drop. In fact, it already has:

 

3 Month Sibor rate since 2016. Source: https://tradingeconomics.com/singapore/interbank-rate

 

4. Maximize your Insurance options

 

This being our bread and butter, here are the many insurance tricks that you didn’t know up had, up your metaphorical sleeve.

 

a) Sign up for Free Covid Insurance

With insurers falling all over themselves to show that “we are all in this together”, a good many of them have started to offer free Covid-19 insurance coverage.

If there is no other action you are taking for insurance, at least then take this one. Because not only are they free, they are also stackable. (Meaning you can claim under each insurer separately should you contract Covid)

All you need is to provide basic personal data to the insurers and voila!

(space)

(space)
Here are a couple of insurers we know that are giving out these freebies:

AIA
AXA
Etiqa
GE
HSBC Insurance
Manulife
NTUC
Prudential

They provide hospitalization cash, death benefits, and a host of miscellaneous coverages. The point being, its free anyway – so lets show exactly what it means to be Singaporean.

 

b) Check your current policies for applicable Covid Coverage

Specifically, the two most prominent coverages are: Critical Illness covers, and Hospitalization cover (ie Intergrated Shield Plans).

We wrote about them comprehensively here, here, and here.

Within the Life Insurance Association framework of 37 Covers for Critical illnesses, the most applicable ones to Covid might be:

End Stage Lung Disease & Coma

 

For those suffering from insomnia, you can check out the latest definitions below:

https://www.lia.org.sg/media/2160/mu5819-part-2-of-4-_lia-ci-framework-2019_lia-definitions-for-37-cis.pdf

Since your policies may or may not follow this latest framework by LIA, you may want to check with your financial advisor regarding your existing policies.

And yes, policies that payout for death will also payout in the case of death via Covid.
(space)

Yup, our collective sigh of relief

 

Do a financial review with your Finacial Advisor while you are at it

 

He or she will likely have tonnes of time on his/her hands during this period, and would most likely be of good assistance. (if not, drop them like a bad habit and find yourself someone good)

There could be gaps in your coverage, or perhaps new and improved plans that are cheaper or better.

Not to mention they could also assist and advise you on the feasibility of taking a policy loan, a premium holiday, or even a partial surrender of a policy if you really need to.

 

5. Take charge of your investments

 

If Warren Buffet does it, so should you, really. With such turbulent times and with world economies looking shaky as hell, this is prime time for any bargain hunting investor.

It does not matter if you are a rank novice that cannot tell the difference between an ETF and Index, everyone starts somewhere.

The sooner you take a more informed stance towards your own investing journey, the better off you will be in the long run.

 

Signing off with our thanks

 

Covid 19 laid bare the world’s (and also Singapore’s) collective shortcomings, and also revealed the financial weaknesses inherent in all countries, businesses, and individuals.

Here is the wake up call and also the golden opportunity to take stock of what you have, what you need, and shore up all the weaknesses while you still can.

Our grateful thanks to Johnny Nimrod Chan for providing the content and inspiration for this article in his own video here:

 

www.facebook.com/johnny.n.chan/posts/10157850612850196

 

Should you need financial advice during this period, he can be reached at:

Johnny Nimrod Chan
+65 8268 8518
johnny.chan@proinvest.com.sg

 

Our grateful thanks too to our readers that have stuck with us through thick and thin, and we are happy to announce that we are on track to launch our brand new platform in Q3 2020.

 

www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

We are also in the midst of building a top-secret new platform that will change the way people view financial planning. PS. It does not contain lame hyperboles like “fintech” or “insurtech” or “machine-learning” or “AI”.

Leave a Reply