The Most Powerful (Insurance) Self Discovery Tool you need to use – and Pronto!

Posted 26 January, 2017 by Clearly
in Opinion

Ever used an online financial needs calculator? Chances are – you walked away feeling disappointed.

They usually come with little to no customization, with little regard to your practical needs and current situation. That is only half the disappointment.

The results presented are almost always half-baked, to say the least. You get tonnes of numbers – but with no explanation why. I might find that I “require” a cool $500,000 in cover but without a word on how long I need it for, and what my priorities are.

Enter Clearly Surely to the rescue.

 

Introducing our new Discover Tool

 

We’ve laboured for months (ok, it was actually our designers and developers that did most of the hard work) to bring about a Life Insurance Discovery tool for everyone to use.

What exactly does it do?

Glad you asked.

After entering your relevant information, you get to know exactly:

  • What type of Life Insurance you need
  • How much of cover you need
  • How long you need it for
  • What are your insurance priorities – and Why

Most importantly – it is meant to be understood with minimal prior insurance knowledge. And it comes in such a cute little design!

Let’s have a quick walkthrough to demonstrate exactly what I mean. Be warned – this tool is extremely easy to use!

 

Input the necessary Information

 

When you visit this link, you are greeted by this aesthetically pleasing input page. Just go right ahead to fill it up.

Minimal typing required – just tap, slide, and click to enter all the fields. So smooth, its addictive.

Most people will have no difficulty filling in the fields, but let us touch on one key input that will influence your results later.

Financial Dependents – Who are they?

We’ve classified them under Child or Adult Dependents. These are the people that depend on you financially, meaning that they require money from you on a day to day basis.


There might be some uncertainty as who is actually your financial dependent. A rule of thumb:  if he or she absolutely NEEDS your financial contribution/help to get by daily life, then he or she is considered a financial dependent.

 

Fill in the Financial Dependents’ Information (if any)

First for the children…

Age of Financial Independence for the little chap is when he or she starts to earn his or her own living, and probably start to give you a little something every month. Hurray!

Desired Monthly Upkeep is the sum of money you estimate he needs to get by if you are not around to provide an income.

And then the adults…

Largely similar in concept to child dependents, and Age to support Adult Dependent refers to the estimated age of the Dependent when he or she no longer needs your support. (We don’t have to elaborate further on this)

 

Fill in some General Assumptions

 

These deserve a little extra clarity.

Age till you achieve Financial Independence: Best described as when you are able to retire / not work anymore but still have enough money to last for the rest of your life. Setting a higher value means you are more conservative (and the results will reflect that later)

Inflation Rate: Your assumed long term inflation rate. Again, the higher the value, the more conservative your results will be.

Number of Year required to Recover from Critical Illness: Your guess on the recuperation period required should you fall ill with a Critical Illness. The average recovery period is 3.5 to 4 years, and setting a higher value means a more conservative result (More protection required).

 

Step back to admire your handiwork

 

The hard part is now over (wasn’t even all that hard now, was it?) and you get to see the results.

All colour coded for your viewing pleasure

This page lets you see the amounts required for each type of essential insurance, and also lets you see graphically how the coverage amount changes over time.

Let’s dissect the words first.

Critical Illness Cover Needs:

Based on the information I input, I require a CI cover of 480k, for 25 years. This will allow me to recuperate from any CI for a period of 4 years (which is what I input as a General Assumption earlier), without a need for any income. I will need this cover at least until I turn age 65, the age where I am assumed to have retired and have enough money set aside for the remainder of my natural life.

Death, Total Permanent Disability, and Terminal Illness Cover Needs:

Likewise, it shows the (maximum) amount of this cover I need, and how long I need it for – to ensure all my dependents can be taken care of. This factors in the inflation rate I input earlier.

Hospitalization Cover Needs:

We are referring to Integrated Shield Plans here, which we feel that everyone needs till the day they pass on. But technically speaking you may not require it after your retirement, depending on the shape of your finances. But we say better safe than sorry!

And now the graph:

Notice the both blue and pink lines dip after some time? That is because your coverage needs for each type has decreased over time. Blue still represents Death, TPD and TI cover. Pink is for CI cover.

Cool tip: You can mouse over each line for additional information.

Right after Little Clearly can earn his own living, my required cover drops.

Just before financial independence, I will need to maintain a critical illness cover. That need disappears after I am financially free. Though of course, I am free to continue maintaining the CI cover. It’s really up to you (and me)

Serious information, presented in a seriously easy manner to understand.

There’s more!

 

Understanding Why

 

After we’ve presented the core information, the next logical step is to analyze why.

We show you why different covers are prioritized differently, and which are those you should take care of first.

In an ideal world, we would buy all types of covers without a moment’s hesitation. But alas! Since resources (money) is limited in the world we live in, we have to prioritize.

 

Addressing your Needs

 

Next is a table which shows how each type of cover can be addressed with the different plans out there in the market.

We show what type of cover(s) is provided by the different type of insurance plans out there. This list is not exhaustive, but it does cover most of the plan types out in the market.

This information comes in handy when considering what type of plans you want to purchase since your needs vary with time.

And finally…

 

Take Action!

 

This is probably the most important part of the whole Discovery exercise.

You may do one or more of the following:

  • Download your report – for free! Print it out, stick it on the fridge if you like
  • Contact Us for a recommended Financial Adviser – we only work with those that have the same values of objectiveness as us. (Each one of them has to meet our stringent standards!)
  • Head on down to our Compare Section
  • Show us some love on Facebook – we really appreciate that!

In case you were wondering, the PDF report looks equally AWESOME. You have to download it to believe it.

 

That’s (almost) all, folks!

When I discover who I am, I’ll be free.
Ralph Ellison

 

We are the first to admit that this tool is not perfect, and we will constantly be on the lookout to improve it. But we are definitely proud of it, as it is the first of its kind (think vastly developed financial needs calculator) to display a wealth of relevant information in such a manner.

 

In the months to come, we will be adding new features that will aid in the insurance buying decision process. Till then, enjoy your journey of self-discovery! If you have any feedback on how we can improve this further, don’t hesitate to share your thoughts below.

 

Visit (and use!) our Discover tool here

 

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.

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