Quora Answer: What is the Rhetorical Device in, “Oceans Rise, Empires Fall”

The following is my answer to a Quora question: “What is the rhetorical device in, ‘Oceans rise, Empires fall’?”

This is an antithesis, and a bicolon.  An antithesis is a rhetorical device where the first portion of the phrase is the opposite of the second.  In this case, the elements are “ocean” versus “empire”, and the second is “rise” versus “fall”.

A bicolon is a form of isocolon, since it is an example of parallelism in speech where the number of syllables and words are identical.  Since there are only two phrases, this makes it a bicolon.

Quora Answer: What is the Impact of Prolonged Sub-US$20 Crude Oil on the Malaysian Economy, Ringgit, & Petronas?

The following is my answer to a Quora question: “What is the impact of prolonged sub-US$20 crude oil on the Malaysian economy, ringgit, and Petronas?”

Malaysia is in a difficult position.  At the beginning of the year, they were projecting a GDP growth if around 3%, meaning that the economy was already slowing down due to several other factors.  The pandemic simply made it worse exponentially.  Malaysia’s economy is now projected to grow at -0.1%, and they will likely fall into a technical recession.  A worst-case scenario, considering a prolonged U-curve, would be an actual recession.

Malaysia’s budget was tabled on the assumption that oil would trade at US$62 per barrel.  Even then, it was rather optimistic.  However, with oil trading at around US$23 or US$24 per barrel at the moment, that budget is in deficit by the billions.  Analysts have calculated the loss at between MYR31 billion to MYR40 billion.  They will likely have to propose another budget for the year, and soon.

The Malaysian government is already heavily constrained, with limited tools to address this.  Their foreign exchange reserves are low, institutional confidence and ratings have not recovered since the 1MDB debacle, and the ringgit will continue to fall against international and regional currencies.  The last stimulus package of MYR20 billion, with an additional MYR620 million, is a stop gap, and definitely not enough for a prolonged lockdown of the economy.  The market thinks so as well, and the local bourse is trading flat, after almost reaching 10-year lows earlier in the month.  This makes borrowing in the international markets very expensive.  Malaysia will likely table a deficit budget, and this will be carried forward next year.  It will be a difficult time for Malaysians.

Specific to the Malaysian government, the Perikatan Nasional needs to prove they are better stewards of the economy than the Pakatan Harapan they replaced.  Otherwise, they will face a reckoning at the ballot box from the rural Malays, who will bear the brunt of this economic malaise.  PAS has its heartland, but BERSATU has no such fallback.  They are still a minor party, with limited support, cobbled together by disaffected Malay nationalists.  The party that has the best chance of gain would likely be UMNO, since they can claim that they alone have presided over a period of sustained growth, and can do that leading a new coalition.

I see no way back for the DAP.  Their ministers have proven to be terrible at building bridges, and spent too much time fighting the civil service, sniping at Singapore, Sarawak and Sabah; and moaning about the poor state of the government.  PKR has an existential crisis, being seen as merely a vehicle for Anwar bin Ibrahim.  The smaller parties have no national consequence.

I foresee the MYR to continue being undervalued compared to regional currencies and the US Dollar, at least until well into 2021.  No one will make major investments until we are convinced that this government has a viable economic recovery plan.  That means next year’s budget will be closely watched.  We must remember that concerns about the economy encompass more than merely the current pandemic.  For example, Malaysia is a major exporter of palm oil.  The European Union is looking to ban imports, and may even write off much of the trade credit.  That is a major source of revenue gone.

Malaysian financial institutions’, and the sovereign credit rating, is still down.  They still have to deal with the consequences of the 1MDB, as mentioned above.  A low credit rating makes the terms of borrowing more expensive and onerous.  For example, Indonesia recently had to issue 50-year bonds.  This constrains how much debt they can take for half a century.  Malaysia might have to do the same.

Petronas will continue to struggle.  We have to remember that even with OPEC and Russia agreeing to cut production by an unprecedented 10%, it only comes into effect in May and June.  It is not immediate.  We are looking at 10 million barrels a day less, when global demand is down 30%.  The projected recovery of oil prices will be slow.  We are looking at US$50 per barrel by the middle of 2021, which is still well below nominal Malaysian budget assumptions.  This loss of revenue will affect production, field development, exploration, and will cascade downline to the thousands of contractors and parasites.  There will be job losses, and pay cuts on a massive scale.  What is likely to happen is that Malaysia will sell stakes in Petronas to raise revenue short term.  I am not sure how attractive that will be when we consider that Malaysia is not a net importer, not exporter.  There will be too much political red tape for it to be attractive.

In summary, things are not looking good, and while seemingly competent, this Malaysian government does not have the mandate to make serious changes.  Paradoxically, going to the polls early before a sustained economic recovery will punish them further, likely leading to a hung parliament.  This will further batter market sentiment, and push the currency value down.

Quora Answer: What is the Best Way to Profit from Deflation?

The following is my answer to a Quora question: “What is the best way to profit from deflation?”

A deflation is the opposite of inflation, in which there is a general decline in prices.  In most instances, this is caused by a severe reduction in the money supply or credit.  Austerity measures which cause a decrease in government, personal, and investment spending cause deflation as well.  In such a scenario, there is no real investment safe asset to put money within a country.  If you keep it in cash, there is a danger that the currency will eventually devalue too much, or be rendered worthless by central bank efforts to address the situation.

If you put it in any sort of equity, the investments will eventually become worthless when the yield drops below the cost of maintaining it.  Companies stop making enough money to give out dividends, factories and production lines become cost centres and close, and property prices plummet.  If you put it in fine art and any sort of niche investment, if you cannot dispose of it abroad, there is no secondary market.  For a while, bonds will become attractive as companies seek funding to keep factories, and production lines, open.  But when nobody is buying, no matter the interest rate, the bonds cannot pay out so they become junk.

The only real asset is in physical gold.  But here, the complication is how to store and secure it?  And the purpose of this asset is to be held as a hedge when conditions improve.  In the meantime, you still need massive reserves of cash to spend on necessities.  Long story short, if there is a deflation, move your investments elsewhere, out of country.

Quora Answer: What is the Best Way to Manage Trust Fund Money?

The following is my answer to a Quora question: “What is the best way to manage trust fund money?” 

That depends on the type, and nature of the trust.  People set up trusts for a variety of reasons from tax mitigation to legacy planning.  All this dictates the investment horizon, management structure, and even the compensation of the trustees.  At a fundamental level, however, there has to be good mix of financial instruments, and asset classes.  This requires a trustee or manager who understands finance and investments.  The assets need to be diversified enough that political, market and currency risks are mitigated, and yet maintain sufficient levels of liquidity when required to pay out to the beneficiaries or settlor. 

There should also be a good understanding of legal requirements, and management responsibility.  One of the best ways to address this is to have a trust company manage the trust, instead of simply having two or more trustees.  This creates a legal entity that can transparently engage the services of tax accountants, lawyers and any other type of specialist with some transparency.  An alternative would be to engage an investment bank to manage the fund, but their fees are expensive, and the trust has to be significant. 

If the question is from the perspective of a beneficiary, then the considerations are towards asset management.  Putting aside some of the funds received for investment and savings is a significant step towards growing wealth.  Insurance policies address liability protection and creates an instant estate in an inclement condition.  Putting some funds in the right collective investment scheme, and creating a portfolio of assets across several classes from equity instruments, debt instruments and property will eventually create a passive income stream.  All that aside, it is very important not to flaunt what you have, and surround yourself with the wrong sort of people who will petition you to “invest” in all manner of dubious businesses.

Quora Answer: What is the Best Way to Invest $500,000 if I Have No Time to Manage My Funds?

The following is my answer to a Quora question: “What is the best way to invest $500,000?  I assume $500,000 is less than the amount most professional personal wealth managers are interested in working with.  I am 29 years old, and I am busy enough on a daily basis that I cannot spend a lot of my time managing it.”

There is no real “best” way.  “Best” depends on your investment horizon, risk appetite and investment goals.  Also, it is dependent on your geographic location and how you want to spend the money you earn, the liquidity of the securities.  Assuming that you want to put all that money in, there are several types of investments that you can consider depending also on their availability.

The most conventional, and everyone is some form of an “expert”, would be to put that money in the market.  These include various types of funds, and both asset and debt securities, including derivatives.  Whilst there is a tremendous potential for returns, there is also a good chance you can lose everything, particular if you get involved in leveraged products such as various forms of derivatives, and collateralised debt obligation.  The safest way is to put the money in funds instead of directly putting it in any security.  This allows you to spread the risk so that a sudden turn in the market in one area will not result in substantial losses on your part.

Some people would recommend property or land.  However, you must note that unless this is REITs, and even with them, liquidity is an issue; you do not have the option of unscheduled withdrawals without the risk of substantial loss.  Also, unless you know property and have experience transacting deals, I would recommend that you avoid it.

There are investment bankers who specialise in mass affluent products and with $500,000, you would qualify.  In general, however, we must remember that the banks are not to make you money; the banks are there to make themselves money – with your money.  The returns on the first two will substantially outperform any product a bank offers for the $500,000 bracket.  Even if the bank manages your funds, and puts it in a fund or an investment-linked product, they charge a substantial management fee.  You would be better off dealing directly with the fund managers or the insurance company.

Insurance companies have special products for mass affluent clients that offer substantially better returns than what they offer other clients.  A single premium of $500,000 for example, creates an immediate estate of approximately four times that, and is still liquid in and off itself since you can leverage off the policy loan, and put the money elsewhere to earn from two sources.  The money in that single premium is also guaranteed an annual return of between 4 to 5%, and a non-guaranteed of substantially more.  Essentially, it will always make money.  This is as close to capital guaranteed as you can get.

Pulling off such an investment feat, however, is not easy.  Not every financial consultant or insurance agent can structure such a product, since it requires experience and knowledge of different categories of financial products.  But if done properly, you have a relatively low risk investment than returns above market.  It will not be spectacular since “spectacular” means high risk, but it will be comfortable.

One final aspect of investments that many people forget is taxation.  Depending on where you are, capital gains may not be taxed, so it is important to know your tax liability wherever you are before putting your money in something.  It is also important to know about that there are different levels of management fees, and it is important to understand where you can cut your costs there.  For example, a bank adds a layer of management fee as opposed to going direct to a fund.  Or, an insurance plan, whilst very attractive, has a mortality charge that increases with age.  To get around this, you can consider buying the plan for a younger person of insurable interest, and make yourself a member, for example.

Quora Answer: What is the Best Way to Invest $1 Million, in Regards to Safety & Return?

The following is my answer to a Quora question: “What is the best way to invest $1 million, in regards to safety and return?”

There is no singular “best” way.  That is dependent on your investment horizon and risk tolerance, where you are based and the tax code.  However, there are some options to consider.

Firstly, you have to consider the type of investment.  If you want to create an immediate estate, that you can consider an investment-linked plan of sorts.  These are funds with an insurance element. Hey may be structured in various ways.  They share all the advantages of a mutual fund, including liquidity.  If you do not want to pay the mortality charges, then invest in a mutual fund.  They have the advantage of spreading your risk across markets and sectors.  A good fund can give you at least 4 to 6% per annum.  A good ILP gives you 33% over 15 years, and 60% over 20 years.

I would never recommend a direct investment into selected counters unless you actually know what you are doing, are familiar with the business and the market and have an exit strategy.  Bonds and fixed deposits, while safe, have every low returns, and when you factor in the inflation rate, and currency exposure, if any, you are likely to have made a significant loss over an intermediate to long investment horizon.  A good alternative, should you be able to get access to that market, is fine art.  This means putting your money into select pieces by select artists.  The ROI can be in excess of 50% over 6 months.  The authentication and appraisal papers are securities in and of themselves and can be traded.

Secondly, you have to consider the type of securities.  It is sensible to have a mix of equity and debt securities.  This ensures that when one end of the market goes down, the other goes up and you have some stability.  A second type of mix is the risk exposure.  You should have at least 20% of your securities in low risk funds, and not more than 20% in high risk.  Keep the rest in balanced funds.  This is a relatively conservative style, but it ensures that until you get a hang of it, you do not over-leverage yourself and end up with nothing.

As far as possible, stay away from derivatives.  Whilst they afford an opportunity for multiplied gains, they also have much higher risk due to leveraging.  Whilst it is never said, most of these movement are based on some form of market intelligence that the average investor will not have access to.  In the long run, you have a much greater risk of actually making losses as opposed to gains.

Quora Answer: How to Ensure You Do Not Lose Assets in a Divorce, without a Prenuptial Agreement?

The following is my answer to a Quora question: “If you do not have a prenuptial agreement, what is the best way to ensure that your partner will not take your money in a divorce?”

Prenuptial agreements are not as effective as people imagine them to be.  They do not, as a general rule, cover child support and alimony.  A prenuptial agreement cannot preclude the payment of either, although it may set some mitigating guidelines.  However, this is the primary reason why people create such agreements.

The most effective means to prevent your soon-to-be former spouse from acquiring most of your estate would be to transfer them to an irrevocable trust.  An irrevocable trust is a distinct legal entity, and marital claims cannot be made against assets in the trust, provided they were not marital assets when they were transferred to the trust, and the ownership may be disputed.

If the intent it to protect an heirloom, such as inherited property, a prenuptial agreement would likely suffice.  But property and assets purchased jointly are marital assets, so shares of it may be transferred to the trust.  Earning post marriage, however, may be run through the trust.

Quora Answer: What is the Best Type of Investment for a 33-Year-Old, with $100,000 in the Bank?

The following is my answer to a Quora question: “I am 33 years old, this year, and have $100,000 in the bank, earning very little interest.  What is the best type of investment for me, in 2016?”

You must understand that the bank in not there to make you money; the bank is there to make the bank money.  If you had more than a million, or in some banks, $2 million in assets and an annual income above their quantum, you would be eligible for their private banking services and products.  Your current amount does not qualify.  As such, even a fixed deposit would not have competitive returns.

On one hand, you can consider mutual funds or any sort of collective investment scheme.  There is no capital guarantee, unlike fixed deposit, so it is classed as a higher risk class of investment.  On the other hand, if you want some element of estate creation, which is a form of capital guarantee, you can put the funds in an investment-linked plan.  They are both more liquid than a fixed deposit should you need to draw on the funds.  And they both have good potential returns of at least 6.5%.  And they both have a slew of funds that you can shift your money around.

The idea here is to spread your risk across several markets and sectors between debt and equity securities.  Generally, I would advise a pivot to Asia if you have a medium to long investment horizon.  The US market fundamentals are not sound, and very susceptible to the boom and bust cycle that plagues it.  Also, their regulation is weak, meaning that your money is not as protected as it should be.  Europe is risky for several major reasons all tied to the Eurozone debt bomb.

I am generally bullish about Asia, particularly East Asia.  Since your money is in funds and not direct counters, you are insulated somewhat from the volatility of the market.  And since this is a long strategy, you should not be bothered by minor shift in the market that have market watchers panicking every now and then.  You have to understand that the major players need to engineer panics now and then so that the sharks can feed when smaller players dump their funds.  An example would be the recent quantitative easing in the China market that had the Financial Times and many major publications talking about a meltdown, and the Shanghai bourse dropped precipitously.  When things like this happen, always step back and relook the fundamentals.  In this case, for many reasons, China is fundamentally sound in the long run, and things look good for the rest of East Asia except Japan, due to its persistent negative interest rates.

Quora Answer: What is Singapore's Strategy if Malaysia Turns into an Aggressor & Attacks under the Mahathir Leadership?

The following is my answer to a Quora question: “What is Singapore’s strategy if Malaysia turns into an aggressor, and attacks under the Mahathir leadership?”

At a strategic level, Malaysia will lose, and lose badly.  This is not an indictment of the combat abilities of the Malaysian military.  They have very good soldiers, and are some of the best in jungle warfare.  However, war, at a strategic level, is won through logistics, political coherence, and an established series of battle plans with specific objectives.

Something that should be corrected, is that elements of the Malaysian Armed Forces, and the Singapore Armed Forces do have combat experience.  Malaysian commandos have acquitted themselves well in overseas action in Somalia, Afghanistan, and Yemen.  Certain units in Singapore were involved in military action around the region, from Timor Leste, to Mindanao to Sri Lanka, as observers, advisors or direct action.

Firstly, an invasion requires mobilisation.  Malaysia requires a military strength of at least three times the defending force in Singapore.  They do not have that. Assuming they implement conscription and muster up the numbers, they cannot mobilise an army group and equip them in the requisite time. Singapore can - that is the purpose of all those mobilisation exercises.  Malaysia is also unable to mobilise those numbers quietly.  Singapore is not going to sit by and wait for them to come to the Causeway.  The Singapore Armed Forces is an offensive force, not a defensive one.  Since Singapore does not have strategic depth to fall back on, that strategic depth must be created by taking territory.  This means securing bridges, ports, roads, air fields, and other strategic points that are within the cover of its artillery umbrella, which is over 100 km.

Secondly, Singapore has overwhelming advantage in all areas of military hardware, being one of the of the most mobile militaries in the world.  Singapore has a vehicle for every three soldiers.  It will have aerial superiority and naval domination of the littoral waters numerically and technologically.  Air interdiction of assets alone will mean that any forces within the entirety of the theatre of war would be unable to move, let alone stop an invasion.  The Malaysian Armed Forces will cease to exist as a coherent fighting force within six hours.

Thirdly, the objective of Singapore would be to seize enough territory to be used as a concession to force Malaysia to the negotiation table.  Taking territory is one thing, but keeping it is politically unviable.  The longer Singapore holds that territory, the more international pressure would build.  Also, scenario modelling shows that holding that territory for an extended period of time will allow a growing resistance movement, which will inflict more casualties than actual combat operations.  Since the Singapore Armed Forces is an offensive force, it does not have the tested morale or the logistics capability of holding that territory in the face of widespread low intensity conflict.

I am quite certain that the Malaysian government is aware that there is no viable military option on the table.  Even if there were an unlikely alliance with Indonesia, Singapore’s assured domination of the seas and air will preclude any meaningful contribution.  As such, Mahathir bin Mohamad is only posturing for a domestic audience.

From a Singaporean perspective, military action is unpalatable because the political cost outweighs the gain.  A military deterrent is only effective when it is a deterrent.  Once that card is played, Singapore is an aggressor, and that has political and trade ramifications that would take decades to address.

Considering the short timeline of this hypothetical conflict, regional and world powers would not have the time to deploy forces, such as when the US sent an aircraft carrier to the Malacca Straits during the Konfrontasi.  This means that they would seek to militarise the Malacca Straits by overtly positioning assets in the region to protect their trade routes.  This would spell the end of the region as an independent, non-aligned actor on the world stage.  This would also end ASEAN as a bloc.

Ownership Protection: The Buy-Sell Agreement

No matter how a business is structured, it requires a mechanism to transfer the equity or control of the business in the event that the principle owner or manager is unable to continue.  This also applies to the members of the board, and senior management.  This is why a buy-sell agreement is necessary.

A buy-sell agreement is a legal contract that outlines the details of how the ownership of a business will be managed upon the death or serious disablement of a partner or shareholder  It provides clarity and certainty regarding the future ownership and operation of the business.

Ownership protection is important for several reasons.  The control and future ownership of a business may have to be reconsidered if one of the partners or shareholders passes away or be unable to continue due to disability or critical illness.  This prevent situations where funds may not be available, the value of business under contention, and beneficiaries may be disadvantaged.  For example, banks may cease to provide credit, or leverage, and give a notice of assessment.  Creditors may call in debt should they be unconvinced of the business as a going concern.  Ownership protection through buy-sell agreement will ensure existing shareholders receive a fair share of the company.  An appropriately structured series of life insurance policies mitigate risk, and provide surviving shareholders some funds to compensate the estate of the deceased without compromising shareholder, and retain control of the business.  The payout is also important because there is a cost for the executive search for a suitable replacement, and this would take time.

The process of using insurance for buy-sell agreements is not complicated.  A specialist lawyer can prepare the buy-sell agreement after the shareholders have discussed and agreed accordingly.  It is important that the agreement is reviewed annually to ensure all shareholders are still in agreement with the terms, and they still accurately reflect the current needs and value of the business.

 

Changes to Critical Illness Definitions in Singapore

Critical illness insurance plans are an important part of any insurance portfolio, especially in Singapore.  Singapore is a wealthy country, with a wealthy country health issues.  The average Singaporean will not die early of malnutrition, childhood diseases, and gastrointestinal brought about by poor sanitation.  The average life expectancy in Singapore is 83 years old for males, and 85 years old for females.  This means we are likely to live long enough to contract a critical illness.

A hospitalisation plan covers the cost of treatment for a critical illness, unless it is a new condition, and they end up naming it after you.  What such a plan does not cover, is the loss of income and the degradation in the standard of living due to the onset of critical illness.  In most families, it may mean the loss or decrease in more than one income streams.  The one who has cancer, for example, is not the only one who cannot work.  Often, another family member, likely the spouse or one of the children, has to become the caregiver and give up on a career.  Even if not, the stress of the illness affects more than one person.

In light of this, it is perfectly understandable why that insurance payout is so important.  It is not only a replacement for income loss, but that extra funds give us options in additional medical options not otherwise covered by the insurer, complementary therapy, or even a final trip.  It is a hedge against impoverishment and medical bankruptcy.

From the 26^th August 2020, there are updated definitions for the standard 37 critical illnesses  all life insurers abide to under the Life Insurance Association of Singapore’s Critical Illness Framework 2019.  This was announced on the 29^th August 2019.  This means, from that 26^th August 2020, no life insurer may sell a critical illness plan or rider under the old definitions.  This does not, in any way, affect any critical illness policy sold before this, and claims against these policies.  These are refinements of definitions of certain critical illnesses, and not the addition or removal from this list.

Under the Critical Illness Framework 2019, the definitions of 21 critical illnesses were revised, while the names of 14 critical illnesses were enhanced to better reflect the intent of the coverage, and remove ambiguity.  The following is a summary of the changes to the standard list of 37 critical illness under the framework:

No	Critical Illness	Name Change?	Definition Change?
1	Major Cancer	Yes	Yes
2	Heart Attacks of Specified Severity	Yes	Yes
3	Stroke with Permanent Neurological Deficit	Yes	Yes
4	Coronary Artery By-pass Surgery	No	No
5	End Stage Kidney Failure	Yes	No
6	Irreversible Aplastic Anaemia	Yes	Yes
7	End Stage Lung Disease	No	No
8	End Stage Liver Disease	No	No
9	Coma	No	Yes
10	Deafness (Irreversible Loss of Hearing)	Yes	Yes
11	Open Chest Heart Valve Surgery	Yes	No
12	Irreversible Loss of Speech	Yes	Yes
13	Major Burns	No	No
14	Major Organ / Bone Marrow Transplantation	No	No
15	Multiple Sclerosis	No	Yes
16	Muscular Dystrophy	No	Yes
17	Idiopathic Parkinson’s Disease	Yes	Yes
18	Open Chest Surgery to Aorta	Yes	No
19	Alzheimer's Disease / Severe Dementia	No	Yes
20	Fulminant Hepatitis	No	No
21	Motor Neurone Disease	No	Yes
22	Primary Pulmonary Hypertension	No	No
23	HIV Due to Blood Transfusion & Occupationally Acquired HIV	No	Yes
24	Benign Brain Tumour	No	Yes
25	Severe Encephalitis	Yes	Yes
26	Severe Bacterial Meningitis	Yes	No
27	Angioplasty & Other Invasive Treatment for Coronary Artery	No	No
28	Blindness (Irreversible Loss of Sight)	Yes	Yes
29	Major Head Trauma	No	Yes
30	Paralysis (Irreversible Loss of Use of Limbs)	Yes	No
31	Terminal Illness	No	No
32	Progressive Scleroderma	No	Yes
33	Persistent Vegetative State (Apallic Syndrome)	Yes	No
34	Systemic Lupus Erythematosus with Lupus Nephritis	No	yes
35	Other Serious Coronary Artery Disease	No	Yes
36	Poliomyelitis	N0	Yes
37	Loss of Independent Existence	Yes	No

Details of these amendments are available at the Life Insurance Association of Singapore’s Critical Illness Framework Comparison of the 2014 & 2019 Definitions.

The reason for these changes is to provide greater transparency, and provide common definitions of these critical illnesses so that consumers are able to compare different policy plans and assess their coverage needs.  This also seeks to eliminate claim discrepancies due to varying definitions, where one insurer may pay out for a claim, whereas another would decline, for the same condition.

None of this precludes insurers from extending coverage beyond the standard 37 critical illnesses, which AIA Singapore does, for its critical illness plans.  For example, AIA Power Critical Cover offers a wide coverage for 175 conditions, including 150 multi-stage critical illnesses, 10 conditions under our Pre-Early Benefit, and 15 special condition.  AIA further boosts your coverage with a Power Reset Benefit, restoring 100% of your coverage 12 months after your last claim, allowing you to make claims up to five times your coverage amount.  You will also enjoy twice your coverage amount should a relapse occur with our Power Relapse Benefit.

Additionally, some changes have expanded benefits for the insured. These include allowing claims under “HIV Due to Blood Transfusion & Occupationally Acquired HIV” for those who suffer from thalassaemia or haemophillia.  Previously, they were denied a claim.  Also, the new definitions have aligned the “Blindness (Irreversible Lost of Sight)” condition with the legal definition of blindness of 6/60, from the previous 3/60.

None of these amendments materially affect any existing coverage.  These definitions are not implemented retroactively, in a manner to deny claims.  They are enhancements, and may be a reason for you to relook your critical illness coverage to add to what you already have.  For amendments that expand the scope of existing coverage, however, it is the discretion of the insurer as to whether they apply, or apply upon auto-renewal of the policy or riders.  There is no reason to rush, or be pressured to relook your coverage.