Stockbank promotes a wide range of financial planning services by partnering with licensed independent financial advisors for the benefit of its users. The financial planning services include general and life insurances.
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Financial planning is one of people’s most important decisions in life beside marriage and often is the first step towards financial freedom for old age or later life. Investments without financial planning are often fraught with risks setbacks and failures especially when your investments go wrong. Therefore, it is unwise to start any type of investment when one does not embark on financial planning first.
Financial planning is the process to reach your personal financial goal in life through minimizing your own financial risk by way of transferring or outsourcing the risk to another party which is often called the insurance company. This process involves many elements such as investment, asset allocation, risk management, tax, retirement and estate planning. General and life insurances are usually the basics of financial planning.
General insurance can be divided into 2 areas, namely, personal and business coverage which are listed below.
|Personal Coverage||Business Coverage|
The most common form of personal general insurance is motor vehicle coverage which is stipulated by law.
There are 3 types of motor vehicle coverage which are listed below.
|Types of Coverage||Definition|
|i. Third Party||Provide cover against legal liability for damage caused to another person's property. It also pays for bodily injuries to another person in case of an accident by the policyholder’s car.|
|ii. Third Party Fire and Theft||Provide cover against damage due to fire or theft. Cover against legal liability for damage caused to another person's property. It also pays for bodily injuries to another person in case of an accident by the policyholder’s car|
|iii. Comprehensive||Provide benefits of both the earlier policies plus a range of additional covers. It includes personal accident cover and medical expenses due to an accident.|
Good drivers are entitled to No Claim Discount (NCD) and also additional 5% good driving discount (from the traffic police) with the provision that they have 30% NCD or more.
|Period of Insurance||Discount|
|The preceding year||10%|
|The preceding 2 consecutive year||20%|
|The preceding 3 consecutive year||30%|
|The preceding 4 consecutive year||40%|
|The preceding 5 consecutive year||50%|
|List of General Insurance Agencies|
Two common elements of life insurance are risk management and investment planning which are surmised below,
- Risk Management
- Hospital and Surgical;
- Disability Income/Long-Term Care;
- Critical Illnesses;
- Death/Total Permanent Disability;
- Personal Accident.
- Investment Planning
- CPF Ordinary Account;
- CPF Special Account;
- Cash Investment;
- SRS Supplementary Retirement Schemes;
- Regular Saving Plan – (Dollar Cost Averaging);
- Endowment Plan.
Disclaimer: STOCKBANK LLP is not a licensed independent financial advisor and is only working with its preferred working business partners to facilitate financial planning services for the benefits of its users. Therefore, STOCKBANK LLP will not be responsible and liable for any of your financial planning decisions engaged with its preferred working business partner(s).