Annuity Or Longetivity Insurance In Singapore

Mon, Oct 29, 2007


Recently you hear a lot of hu-hah of the compulsory annuity or longetivity insurance imposed by the government..

Many are “too blur” like sotong, catch no balls or cant be bothered ignorant about this “annuity tingy” because they felt that understanding annuity is too “chim”, complex for an average Joe.

Let me offer you some enlightenment and explanation of what annuity is all about and how it could impact you.


The reason why people get life insurance is to protect themselves in case they died too early.

AND the reason why most people get themselves “annuity” is because they scared they “live too long” that they will finish up using their cash savings.


Today, I am going to talk to you about Annuities. 🙂

What are annuities?

How do annuities work?

What are the different types of annuities?

AND most importantly, how can annuities BENEFIT YOU…

Well….Before we kick start the whole discussion on annuities, let us understand what sleeping annuity is all about 🙂

In layman terms, annuity is a contract that provides a guaranteed income to the annuitant FOR LIFE with income payments made at regular intervals.

The income can be made to them on a monthly basis, quarterly basis, semi-annually basis or on a yearly basis.

It’s up to the annuitant to decide their preference.

Even, if the annuitant lives up to 90,100 or even 120 years old, they will still receive the promised income, the annuity that has been guaranteed for them.

The income remittance will only STOP once the annuitant commit suicide dies.

Well…I am not going to bogged you down with jargons, details that will put you to sleep. :O

In my job scope as a financial associate of NTUC Income, I will always mention to my client that basically there are 2 different types of annuity.

1)Immediate annuity

You get money, or annuity remittance immediately after payment.

2)Deferred Annuity

You get the first payment later. You defer it to an age of your choice and receive them later + interest.

Why is annuity attractive?

Generally, people will left $99,600 in their retirement account, and (currently) at age of 62, CPF will release or give the money to them bit by bit until the amount depleted.

This is a problem if the person lives too long.

If he has an annuity, he will receives payment till he die. That’s the reason why people have annuities.

If you have a lot of money, place half of your money in our growth fund (earning 4.04% per annum) and another half of the money for annuity remittance.

You grow your money, and you have money for your daily needs…


If you would like me to personally analyse your current situation, do give me a call and I will assist you.

Its of course, non obligatory! 🙂

p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…

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This post was written by:

- who has written 431 posts on The Official Helmi Hakim Website.

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

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6 Responses to “Annuity Or Longetivity Insurance In Singapore”

  1. Enzo Says:

    Well, i dun exactly had good thought of insurance due to some cases with my relatives.

    I had a relative who had an accident with his bike. He was paralysed and broke his arms and legs.

    According to the insurance, he should receive payments for broken limbs but the company claims that he still have his limbs, unless its amputed, they refuse to pay.

    Some fights went on and in the end, they decided to pay but by then, the person has already passed on and they pay the cheque to the deceased.

    How do u check the cheque with the name of someone who died?

    Really had bad impression on insurance since..

  2. Helmi Hakim Says:

    Enzo >>> I understand how you feel.

    Its very important for one to be insured with a good and transparent company.

    NTUC Income is well known for paying ex-gratia payment as a form of goodwill to its clients.

    Its standing as a co-operative plays an important role in the society.

    Its social mission to assist the public is noble and many have regarded NTUC Income as their partner in life…

    and I am very proud and honoured to be part of this reputable,growing organisation 🙂

  3. Raymond Lim Says:

    I found your blog useful…

    Very informative indeed…

    Continue sharing quality info with the public…

    We can feel your deepest sincerity…

  4. Senan Says:

    Thank You for your info on annuity.
    Just need to ask, for annuity, do they pay for hospitalization?
    Thank You.

  5. Helmi Hakim Says:

    Annuity doesnt pay for hospitalisation.


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