Read my suggestions in:
http://theonlinecitizen.com/2008/07/improving-public-transport-%e2%80%93-an-express-alternative/#comment-15330
Saturday, July 19, 2008
Ownership of a life policy
Dear Mr. Tan,
My uncle (as policy holder) bought a life policy for his wife (as insured). If the policy holder passes away, does it mean that the ownership of the policy automatically transfers to his wife (the insured)? Or does it become a 'no ownership policy'. If it is the latter, who has the rights to deal with the policy, for instance, to take a policy loan/terminate it?
REPLY
Your uncle is the owner of the policy. On his death, the policy becomes part of his estate and the administrator of the estate (which is usually his wife) can deal with the policy in any suitable way, such as taking a loan or terminating it.
Your uncle has the choice of transferring the policy to his wife now and write in his will to transfer the policy to the wife on his death.
My uncle (as policy holder) bought a life policy for his wife (as insured). If the policy holder passes away, does it mean that the ownership of the policy automatically transfers to his wife (the insured)? Or does it become a 'no ownership policy'. If it is the latter, who has the rights to deal with the policy, for instance, to take a policy loan/terminate it?
REPLY
Your uncle is the owner of the policy. On his death, the policy becomes part of his estate and the administrator of the estate (which is usually his wife) can deal with the policy in any suitable way, such as taking a loan or terminating it.
Your uncle has the choice of transferring the policy to his wife now and write in his will to transfer the policy to the wife on his death.
Unforgettable sight in Beijing
My friend saw an unforgettable sight during his recent visit to Beijing - something that he has not seen before, and will never see again in the future.
He looked up and saw a blue sky. In preparation for the Beijing Olympics which will start soon, the authority has asked the factories to stop or reduce their production within a large part of Beijing. This reduces the pollution and makes the air clean.
He expects that, after the Olympics, things will get back to normal in Beijing - and that is a polluted environment.
He looked up and saw a blue sky. In preparation for the Beijing Olympics which will start soon, the authority has asked the factories to stop or reduce their production within a large part of Beijing. This reduces the pollution and makes the air clean.
He expects that, after the Olympics, things will get back to normal in Beijing - and that is a polluted environment.
Cost of Private Shield
A reader asked how it is possible for the cost of a private Shield plan to be more than $100,000 for ages 30 to 85.
You can add up the total cost from the websites of the insurance companies. Here is an example from NTUC Income:
For the enhanced plan (subject to deductible and co-insurance):
http://income.com.sg/insurance/incshield/premium.asp
For the plus rider (to cover the deductible and co-insurance)
http://income.com.sg/insurance/incshieldplus/
Add up the premium rate for plan P (which covers private hospital) for the ages from 30 to 85. Remeber to muliply by the number of years in each category. I got a total of $102,344.
This does not include the cost beyond age 85, and also for future increases in premium rates due to medical inflation. These rates are not guaranteed at the current level and can be adjusted in future years.
You can find out the premium rates charged by the other insurance companies for their private Shield plan. I believe that the total cost will be higher, i.e. more than NTUC Income.
You can add up the total cost from the websites of the insurance companies. Here is an example from NTUC Income:
For the enhanced plan (subject to deductible and co-insurance):
http://income.com.sg/insurance/incshield/premium.asp
For the plus rider (to cover the deductible and co-insurance)
http://income.com.sg/insurance/incshieldplus/
Add up the premium rate for plan P (which covers private hospital) for the ages from 30 to 85. Remeber to muliply by the number of years in each category. I got a total of $102,344.
This does not include the cost beyond age 85, and also for future increases in premium rates due to medical inflation. These rates are not guaranteed at the current level and can be adjusted in future years.
You can find out the premium rates charged by the other insurance companies for their private Shield plan. I believe that the total cost will be higher, i.e. more than NTUC Income.
How banks lose the trust of their customers
An elderly person told me, "Long ago, many people can trust their bank to give them a fair return on their savings. Nowadays, the banks make a lot of profit by selling bad financial products to their customers. Many customers now distrust the banks".
What has happened during the past ten years, that makes the banks lose the trust of their customers?
Long ago, the banks are tightly controlled by the regulator. They have a few common products that their customers can understand, such as a saving account, a current account and fixed deposits. The customers can compare the interest rate paid on these savings and deposits. The banks have to offer competitive terms to attract and retain their customers.
The situation changed in the past decade. Banks started to offer complicated financial products. They employ marketing officers to sell these products, such as high cost life insurance products. Later, they sell structured investment products.
There is a change in the role of the regulator. They are not concerned about ensuring fairness to the consumers, and decide to leave this matter to the market. The consumers are left at the mercy of the issuers of these products. The issuers have the objective of maximising their profit and do not mind "ripping off the consumers". Business ethics disappeared.
The banks market these products to their consumers. They make a handsome profit from the commissions paid by the product issuers. But the poor consumers are given poor financial products. They only realise it after 3 to 5 years, but by then, it is too late.
This is how banks lose the confidence of the customers.
What has happened during the past ten years, that makes the banks lose the trust of their customers?
Long ago, the banks are tightly controlled by the regulator. They have a few common products that their customers can understand, such as a saving account, a current account and fixed deposits. The customers can compare the interest rate paid on these savings and deposits. The banks have to offer competitive terms to attract and retain their customers.
The situation changed in the past decade. Banks started to offer complicated financial products. They employ marketing officers to sell these products, such as high cost life insurance products. Later, they sell structured investment products.
There is a change in the role of the regulator. They are not concerned about ensuring fairness to the consumers, and decide to leave this matter to the market. The consumers are left at the mercy of the issuers of these products. The issuers have the objective of maximising their profit and do not mind "ripping off the consumers". Business ethics disappeared.
The banks market these products to their consumers. They make a handsome profit from the commissions paid by the product issuers. But the poor consumers are given poor financial products. They only realise it after 3 to 5 years, but by then, it is too late.
This is how banks lose the confidence of the customers.
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