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Is Your Life Insurance Enough to Support Your Family?

Life in Singapore moves quickly, and with it comes the responsibility of safeguarding the people who depend on you. Life insurance protects your loved ones when you are no longer able to do so yourself. Still, many people wonder if the coverage they have today would truly be enough.

Whole life insurance has gained popularity among Singaporeans because it provides lifelong coverage and combines protection with the opportunity to build cash value over time. A portion of the premiums you pay goes into investments, allowing the policy to grow in value and be used later. This value may include guaranteed benefits and in some cases non guaranteed bonuses, depending on the type of whole life plan. If necessary, the cash value can be accessed during emergencies or used to pay future premiums. However, loans taken from the policy must be repaid with interest, and failing to do so may slow future growth and reduce the amount available.

Participating whole life plans share in the profits of the insurer’s participating fund. These profits are distributed to policyholders as dividends or bonuses. While they offer the potential for attractive growth, these bonuses are not guaranteed and depend on the performance of investments in the fund. In contrast, non participating policies focus on stability and offer guaranteed benefits without bonuses. Choosing between the two depends on your risk appetite and expectations for long term returns.

Term life insurance provides a simpler alternative. It offers coverage for a set period and is typically more affordable since it does not invest part of the premium. Many families select term insurance to cover key life stages, such as raising children until they become financially independent or supporting elderly parents. Because it does not build cash value, term insurance works well for those who only want pure protection without an investment component.

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The amount of protection you need depends on the sum assured, which is the payout your family would receive if you pass away or suffer total and permanent disability. If you are the primary income provider, you may require a higher sum assured to ensure your family can continue living comfortably. If your household has multiple income sources and relies less on yours, a lower amount may be sufficient. Coverage can remain fixed for the policy’s duration or decrease gradually, such as in mortgage reducing plans that are designed to cover home loan balances until they are fully paid.

To determine the right level of coverage, start by looking at your family’s lifestyle and financial commitments. Consider the monthly expenses needed to maintain their standard of living. Think about potential medical or care costs that may arise. Add unpaid liabilities such as home loans or personal debts. Then assess the assets already available, including savings, investments, and government support schemes.

Singapore provides several programs to help families in difficult times. The Dependants’ Protection Scheme automatically covers Singaporeans and Permanent Residents who have made their first CPF working contribution and offers a payout of up to $46,000 in the event of death, terminal illness, or total and permanent disability. Home buyers who use CPF to finance their Housing and Development Board loan may be protected under the Home Protection Scheme, which covers outstanding housing loan instalments until the loan is fully paid.

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Protecting your family remains one of the most meaningful financial decisions you can make. Whether you select a lifetime policy that grows with you or a term plan that offers straightforward coverage, the key is choosing a solution that fits your family’s needs and allows them to continue life with dignity should the unexpected happen.

Sources: 1 & 2

Micro-investing: Small Money Big Momentum

Micro-investing has emerged as one of the most accessible ways for Singaporeans to enter the financial markets without the stress of committing large sums. The idea is straightforward. You invest small amounts at regular intervals, often through mobile apps that automate everything from deposits to portfolio allocation. With fractional shares and exchange traded funds available for as little as S$1, even the smallest contributions begin to take shape as a genuine portfolio over time.

Its appeal lies in simplicity and confidence building. Micro-investing eliminates the belief that serious investing requires substantial capital. User friendly apps guide beginners at their own pace and budget, making the learning curve far less intimidating. The automated nature of these platforms also encourages discipline. When contributions occur quietly in the background, saving becomes habitual rather than aspirational. Over time, these habits compound and can meaningfully influence long term financial health. Even with limited funds, investors can achieve diversification by spreading small amounts across sectors, markets, and asset classes.

However, micro-investing is not without its drawbacks, particularly when it comes to cost. Round up apps may be convenient, but they often charge a flat fee regardless of account size. Some popular platforms start at about S$4 per month, which translates to roughly S$37 per year. This may not seem significant, but if you are investing only S$7 to S$13 a month, the fees can quickly outweigh your early returns. Many platforms operate on similar fixed fee structures, which can erode gains until the portfolio grows large enough to absorb these charges. Growth potential also remains modest unless contributions increase steadily. Small amounts will yield small results in the early years, which means micro-investing alone might not support major long term goals such as retirement or home purchases. Volatile markets can also feel more discouraging when account values are still small, as fluctuations appear more pronounced.

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Despite these limitations, the true value of micro-investing lies in habit formation and long term discipline. Small recurring contributions serve as early training for future investment behavior. They introduce new investors to market movements while reinforcing consistency. A simple projection illustrates the impact. Investing S$27 per month at a ten percent annual return grows to about S$339 after one year from S$324 in contributions. After ten years, it becomes roughly S$5,531. After thirty years, it surpasses S$61,033 from just S$9,720 in total contributions. These figures show how time and compound interest can turn modest amounts into meaningful progress. Micro-investing may start small, but it builds momentum. As contributions rise alongside income and confidence, it can become the gateway to a stronger, more resilient investment journey.

Sources: 1 & 2

Spending Less and Living More in Singapore

I once stumbled upon a small shop that sold pre-loved books and a title caught my eye. It read “Live More, Spend Less”, and it made me reflect on how people in Singapore can stretch every dollar without giving up comfort or joy. In a city where the cost of living can feel overwhelming, it becomes even more important to be conscious of how we live and what we value. Living well does not need to mean spending freely. Sometimes it means being intentional with daily choices.

One of the most practical ways to save is by rethinking everyday habits. Cooking at home can make a big difference. If you have access to a kitchen, preparing meals in advance can cut food expenses dramatically while also giving you control over what goes into your meals. Even something as simple as drinking water from a reusable bottle can save money that often gets spent on beverages throughout the day. And of course, we are blessed with its famous hawker culture. For less than S$10, you can enjoy hearty meals and local favorites. If you want a more comfortable setting, food courts offer air conditioned spaces, although they come at a slightly higher cost.

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Living better also means spending with awareness. Tracking expenses through a simple app or spreadsheet helps reveal patterns that are easy to miss. Paying yourself first by setting aside savings before spending anything else builds financial discipline. But saving money should not mean giving up the things that make life meaningful. A thoughtful splurge on an experience with loved ones or a purchase that enhances your life is more rewarding than spending without thinking. Planning ahead also goes a long way. Booking tickets for activities through platforms like Klook or Agoda often comes with discounts that free up more room in the budget.

Furthermore, the beauty of Singapore is that you do not always need to spend to enjoy it. The city offers many free attractions that showcase what makes it unique. Walking trails at the Singapore Botanic Gardens are a refreshing escape in the middle of the city, while neighborhoods such as Little India and Chinatown offer vibrant streets filled with culture and food. A hike up Mount Faber rewards you with a sweeping view of the skyline and sea. Visit at sunset and you will be treated to one of the most beautiful sights in the city. From there, the cable car to Sentosa awaits if you choose to continue the adventure.

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Living more while spending less is not about deprivation. It is about being mindful, embracing resourcefulness, and finding joy in what already exists around us. Sometimes we just need to pause long enough to see them.

Sources: 1 & 2

Closing Your Singapore Bank Account the Right Way

Closing a bank account in Singapore is generally straightforward, but it is not as simple as clicking a button. Personally, it is a step I will be taking in the coming weeks as I switch banks. Whether you are consolidating your finances (like me) or managing the estate of a loved one, doing it properly ensures a smooth process and helps you avoid unnecessary fees or complications.

The first step is to make sure your account is ready to close. That means settling any outstanding balances, unpaid fees, or overdrafts. If your account still holds money, decide how you would like to receive it. Most banks offer a few options. You can transfer the remaining funds to another account, request a cashier’s order, or withdraw the balance in cash at a branch.

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Before you move forward, take a moment to review any automatic payments or GIRO arrangements linked to your account. These recurring transactions must be canceled in advance. Failing to do so could cause missed bill payments or rejected transfers once the account is closed.

Once everything is settled, contact your bank for the closure form. This can usually be done by visiting a branch or downloading the document from the bank’s website. Fill it out with your personal details and specify which accounts you intend to close. Each account typically requires its own form. For instance, this is a sample of the OCBC Account Closure Form and a sample of the CIMB Account Closure Instruction.

Submitting the form depends on your situation. If you are in Singapore, visiting a branch remains the fastest route since bank staff can process the request immediately after verifying your identification. You can also mail the signed form, though this may take longer to process. For customers based overseas, some banks accept international submissions, but you may need to have your documents verified at a Singapore overseas mission, which could come with extra charges.

Digital banking has made the process even easier for some. DBS and POSB, for instance, allow customers to close a personal or joint alternate account online using the digibank portal. After logging in, you can select the account, verify your details, and transfer any remaining balance to another account before confirming the closure.

When the account is officially closed, you can receive your remaining funds by transfer, cashier’s order, or cash at a branch. Once done, the account becomes inactive and cannot be used for any further transactions, whether through ATMs, online banking, or other self-service facilities. Any GIRO deductions or cheque clearances will automatically be rejected. In addition, PayNow links tied to your mobile number or NRIC will be automatically removed. Any incoming payments through PayNow will no longer be credited once the account is deactivated.

If the closed account was the only one linked to your ATM or debit card, you should destroy the card to prevent accidental use. The same goes for a savings passbook, if applicable.

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In cases where you are handling the account of a deceased loved one, contact the bank directly. You will likely need to present documents such as a death certificate or the Last Will & Testament. Each bank has its own policy for estate settlements, and staff can guide you through the steps.

Closing a bank account is often the last chapter of a financial story. By taking the time to settle obligations, secure funds, and follow the bank’s procedures, you can bring that chapter to a close with confidence and clarity.

Sources: 1 ,2, & 3

How to Start Investing in Gold in Singapore

There is something undeniably alluring about gold. Beyond its gleam and grandeur, gold carries a timeless quality, a tangible piece of wealth that transcends generations. Whether worn as jewelry or stored as bullion, it is an asset that often endures when markets falter. But for those looking to begin investing in gold in Singapore, the questions remain: Where should you start? Should you buy gold bars or gold jewelry, and which form truly protects you against inflation?

Gold’s enduring appeal lies in its reputation as a safe haven. When uncertainty shakes the global economy, as seen during the 2008 financial crisis or the COVID-19 pandemic, investors frequently turn to gold to preserve value. It is the metal that shines brightest when confidence in currencies fades.

One of the most traditional ways to invest in gold is by purchasing physical bullion, which refers to investment-grade gold in the form of bars, coins, or ingots. Each bar typically bears the stamp of its manufacturer along with its weight and purity, usually 99.5 percent or higher. Coins, on the other hand, often carry artistic engravings or collector value that can push prices above the metal’s intrinsic worth. In Singapore, buying bullion comes with a tax advantage because gold that qualifies as an Investment Precious Metal (IPM) is exempt from the Goods and Services Tax (GST). Reputable sellers include UOB Gold Bullion, BullionStar, and GoldSilver Central.

Gold jewelry offers another route, though it is not quite the same as investing in pure gold. Jewelry comes with added costs such as craftsmanship, branding, and design premiums, which dilute its value as an investment asset. It can still serve as a portable store of wealth, but it is not GST-exempt and should not be mistaken for a direct hedge against inflation.

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For investors seeking something more dynamic, gold can also be approached as a currency-linked investment. Some structured products allow you to treat gold as a tradable currency known by its code XAU. In this setup, you agree on an investment term, a base currency such as USD or SGD, and a target conversion rate. Depending on gold’s performance against your chosen currency, your returns may be paid in cash or in gold itself. The potential for higher yields makes this approach attractive to those comfortable with some risk and the idea of being repaid in ounces rather than dollars.

If you prefer not to store or insure physical gold, exchange-traded funds (ETFs) and unit trusts offer a more accessible alternative. These funds mirror gold’s market performance without requiring you to hold the metal. ETFs tend to passively track gold prices, while unit trusts are actively managed by professionals who buy and sell gold-related assets on your behalf. They trade easily on the stock exchange, making them a flexible and liquid way to diversify your portfolio. Still, investors should review management fees and ensure that the fund is operated by a reputable institution.

Another indirect approach is through gold mining stocks. Companies such as Barrick Gold (GOLD) and Newmont Corporation (NEM) give investors exposure to the gold industry without owning the physical commodity. Their share prices often move in tandem with gold’s market value, though management quality, operational efficiency, and geopolitical risks can introduce additional volatility.

Should you buy gold in Singapore? Absolutely, but with a clear understanding of what you are buying and why. Gold can act as an anchor in turbulent times, a hedge against inflation, and a stabilizing force in a diversified portfolio. Yet it is not without its challenges. Physical gold lacks liquidity compared to ETFs or stocks, and its price can swing sharply in response to economic shifts.

Ultimately, investing in gold is about balance. It is not meant to replace other assets but to complement them, serving as a steady counterweight when markets stumble. In a world of uncertainty, gold remains one of the few investments that appeals as much to the heart as to the head, a rare blend of beauty and financial resilience.

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Disclaimer: This article is for general information only. Readers should research gold investments in Singapore and seek professional advice before investing. Remember that gold is best viewed as a way to diversify a portfolio, not as the sole safeguard for wealth.

Sources: 1 & 2

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