Indefinite Coverage

1.The following statement(s) on the CPF is/are correct EXCEPT:
I. Self-employed persons with net trade income exceeding $6,000 are required to contribute to their Medisave accounts only.
II. To enhance employability for older workers, the compulsory employers’
contribution for workers aged above 50 will be lower.
III. There is no limit to the amount of contribution, both compulsory and
voluntarily, that can be paid to a member’s CPF account.
A I only.
B II only.
C I and II only.
D I and III only.

2. Which of the following statement(s) about Eldershield and IDAPE is (are) TRUE?
I. IDAPE is an alternative premium paying plan to Eldershield for those age 70 and above during the first launch.
II. Singaporeans between age 40 and 69 at the time of launch of Eldershield can apply for IDAPE if they suffer from only two existing ADLs.
III. IDAPE is a government scheme and it is free for those who qualify.
A I only.
B I and III only.
C III only.
D II and III only.
3. When considering taking on an insurance policy for retirement purposes, which of the following factors is most applicable?
A Regular premium Endowment is more suitable for pre-retirement than
retirement.
B Whole life is for indefinite coverage and useful for estate costs.
C Ageing population may lead to an increase in demand for major medical and long-term care insurance.
D All the above.
Using the information given in the case study above, answer questions 3b(i) and 3b(ii).
(b)(i) Demonstrate how close Mr T will come to his goal of a capital sum of $2,354,000.    (12 marks)
(b)(ii) Calculate the amount of retirement income Mr T can expect to receive when he retires at age 65.    (4 marks)
(c) If inflation was at a higher value, how will this affect Mr T and why?
List FOUR (4) possible impacts (assume investment returns cannot be safely improved).    (8 marks)