Chartered Financial Consultant® (ChFC®)

Since 1982, the Chartered Financial Consultant has remained the most extensive education available for professionals seeking a designation in financial planning. More than 41,000 individuals have attained this distinction, enabling them to effectively apply a comprehensive financial planning process to their clients’ needs.

Individuals with the ChFC designation have demonstrated their vast and thorough knowledge of financial planning. The ChFC program is administered by the American College. In addition to successful completion of an exam on areas of financial planning, including income tax, insurance, investment and estate planning, candidates are required to have a minimum of three years experience in a financial industry position.

Like those with the CFP designation, professionals who hold the ChFC charter help individuals analyze their financial situations and goals.

By Genevieve Cua - Oct 18, 2006
The Business Times

SINGAPORE registers the highest level of insurance penetration of four territories in the region, yet the majority believe they do not have enough cover to meet their families' needs over 10 years, a survey commissioned by insurance company AIA has found.

In fact, 55 per cent of Singaporeans say they would not be able to survive more than 12 months if their main source of income was suddenly eliminated. Only 18 per cent hold income protection policies.

The AIA 'Life Matters' Index is an annual survey into the region's insurance and risk attitudes. This year, the survey covered Singapore, Hong Kong, Malaysia and Thailand, and included a financial planning section. The survey involved 4,000 respondents in all. In the financial planning section, Singapore respondents had a household income of at least $5,000.

On the question of whether funds would be sufficient should the respondent or a family member suffer a critical illness, between 60 and 70 per cent said they either did not know or that funds were not enough.

Singaporeans, however, had the highest expectation of how much cover they would need in case of illness or an accident. The mean multiple was 6.8 times the personal income, compared to 6.2 times in Hong Kong.

In terms of educational savings, Singapore respondents indicated that on average, they've saved $45,000 for one child's tertiary education.

But their expectation of how much is needed was about twice that amount, at over $89,000.

Sixty per cent were not sure whether they intended to send children overseas, while more than 70 per cent either did not know whether their savings were enough for retirement or that the money would not be enough.

AIA general manager Mark O'Dell said the high proportion of 'don't know' replies indicated a need for financial planning advice. AIA is setting up a 'financial health check academy' to further train its advisers on needs-based selling. At the moment it has launched a financial health survey where those who undergo a full check will receive a complimentary report.

'CPF savings are not enough (for retirement) and neither can people count on unlocking the value of their real estate ... There is over-confidence that home ownership is an asset that they can rely on at some future point to consume, and generally that does not happen.'

He said AIA might consider entering the disability income protection market. At the moment there are only two to three such products. 'I think there is a need there that seems to be recognised. Yet (the take-up) has been very slow.'

On medical cover, he said the take-up of the new HealthShield Gold Prestige 'as charged' plan has been 'very good'. 'We doubled our sales in a short period.' The firm is now looking into marketing it as an upgrade to current HealthShield policyholders, of which there are about 600,000.

By Debbie Too

Bandar Seri Begawan - Personal insurance policies have yet to increase their attractiveness to Bruneians, bankers said, noting that many who do enrol in their programmes drop out after a couple of years.

Only five of every 10 people aged 20 to 30 years old who buy a life insurance policy sustain their regular payments for a couple of years, said Elizabeth Sim, a senior personal banker at HSBC in Brunei.

Only three manage to commit to keeping the policy for its entire payment cycle, she said in an interview with The Brunei Times.

AIA Insurance, on the other hand, is seeing a higher percentage of people completing their insurance schemes, eight out of every 10, according top agency Betty Yeo.

"They are afraid of losing their income or they understand that insurance is a form of protection that helps secure them in times of sudden disability or loss of income," she explained in an interview.

"Insurance policies are a form of savings that cover health, disability and loss of income, as well as paying out the family members upon death," said Betty.

"Some people have to consider that when they take out a personal insurance, they have to think what happens when they are 40 years old with no work? At least when they take out an insurance policy when they were younger, the insurance would help them cover their loss of income."

Elizabeth said that it is better to start an insurance policy when the individual is younger because the premiums are much cheaper than when one hits 30 years and above.

"The concern for financial stability only happens when the individual has started to work between the ages 20 and 30 years old. Anyone younger has no concern or worry for finances," said Betty.

"It is better to take out an insurance policy when you're younger to take advantage of the cheaper premiums, instead of starting when you're older and thinking back about why you never started one sooner," said Elizabeth.

Asked about the necessity of having a life insurance policy, Elizabeth said: "There is no easy yes or no answer. The individual themselves will be able to see it.” -- Courtesy of The Brunei Times

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