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Sunday, January 23, 2011
Poor yield from Vivo-life policy
Dear Mr. Tan
I got a quote for a Vivolife policy from an agent. I did my calculation. Apparently, the effect of deduction on the 25th yr is far from your benchmark. I also calculated the actual yield of return which is roughly 2%.
I wondered whether is the current market now offers this kind of policy to me? As in most of the company offering roughly the same amount of deductions as well, hence offering even lower yield of return?
REPLY
I have looked at the benefit illustraiton. As this policy requires the premium to be paid for 15 years, it is better to calculate the yield at the end of 15 years. The situation is worse than what you have calculated.
Taking the cash value at the end of 15 years, I found the yield to be between 0.2% to 1.1% The reduction in yield is 3.6% to 4.1% from the gross yield. My benchmark for the reduction in yield, to cover the cost of insurance and the investment service, is 1.5% for all durations. The deduction from the Vivo-life policy is far too high.
Is is better for you to invest in a low cost investment fund, such as an indexed fund or exchange traded fund, as explained in my book on financial planning. If you need insurance, you can buy insurance under the SAF group insurance scheme. Do not invest into any life insurance policy that provides a poor return.
I got a quote for a Vivolife policy from an agent. I did my calculation. Apparently, the effect of deduction on the 25th yr is far from your benchmark. I also calculated the actual yield of return which is roughly 2%.
I wondered whether is the current market now offers this kind of policy to me? As in most of the company offering roughly the same amount of deductions as well, hence offering even lower yield of return?
REPLY
I have looked at the benefit illustraiton. As this policy requires the premium to be paid for 15 years, it is better to calculate the yield at the end of 15 years. The situation is worse than what you have calculated.
Taking the cash value at the end of 15 years, I found the yield to be between 0.2% to 1.1% The reduction in yield is 3.6% to 4.1% from the gross yield. My benchmark for the reduction in yield, to cover the cost of insurance and the investment service, is 1.5% for all durations. The deduction from the Vivo-life policy is far too high.
Is is better for you to invest in a low cost investment fund, such as an indexed fund or exchange traded fund, as explained in my book on financial planning. If you need insurance, you can buy insurance under the SAF group insurance scheme. Do not invest into any life insurance policy that provides a poor return.
Guaranteed Life Annuity
Dear Mr. Tan
I am 50 years old. I do not invest in shares and keep my money in the bank to earn a low rate of interest. An agent has told me about the guaranteed life annuity from NTUC. The agent said that it gives a return of 3 – 5% per annum and I can terminate the annuity anytime and get the principal back plus interest. If you retire early U can also start the annuity payment early. Appreciate your advice.
REPLY
Please ask them to give you the benefit illustration. You can send it to me.
You should also buy my book on financial planning, to learn about better choices. See this brochure. http://projects.easyapps.sg/iShop/public/common/File.aspx?file=43
I am 50 years old. I do not invest in shares and keep my money in the bank to earn a low rate of interest. An agent has told me about the guaranteed life annuity from NTUC. The agent said that it gives a return of 3 – 5% per annum and I can terminate the annuity anytime and get the principal back plus interest. If you retire early U can also start the annuity payment early. Appreciate your advice.
REPLY
Please ask them to give you the benefit illustration. You can send it to me.
You should also buy my book on financial planning, to learn about better choices. See this brochure. http://projects.easyapps.sg/iShop/public/common/File.aspx?file=43
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Family Law | Family Law in Ireland | BusinessAndLegal.ie
Family law solicitors have a huge area of issues to deal with on behalf of clients such as
- Nullity and void marriages
- Separation agreements
- Judicial separation and divorce
- Maintenance
- Pension adjustment orders and pensions generally in separation and divorce
- Ancillary orders and other reliefs to be pursued on divorce and judicial separation
- Domestic violence
- Foreign divorce decrees
- Domestic violence
- The non marital family
- Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 which was signed into law in 2010
- Child law including guardianship, access and custody
- The tax implications of marriages breaking up
- Adoption
- The non-marital family
- Child abduction.
Attorney Software | Software for Lawyers | Legal Office Supplies
Attorney software is commonplace in the offices of the largest and most successful law firms.
But the ability in recent years of software manufacturers to build software on the Microsoft CRM platform has meant a welcome increase in the number and quality of software for lawyers.
The astute legal professional understands the need to keep on top of his file and client management, particularly to avoid malpractice and professional negligence suits and unhappy and disgruntled clients.
North South Expressway
The Government is spending $7 to $8 billion on the North South Expressway. This is a lot of money. The money is better spent to improve the feeder services, e.g. to bring commuters from their homes to the MRT station or bus terminal with a shorter waiting and journey time and capping the cost at the current level.
If the feeder service is improved, like in Hong Kong, many people will prefer to take public transport to work, rather than drive their cars. If 30% in the current cars are taken off the road, there will be no need to expand the road network and expressway for the next 10 years or more. It will be a better solution over the long term, and is environmentally sustainable.
Tan Kin Lain
If the feeder service is improved, like in Hong Kong, many people will prefer to take public transport to work, rather than drive their cars. If 30% in the current cars are taken off the road, there will be no need to expand the road network and expressway for the next 10 years or more. It will be a better solution over the long term, and is environmentally sustainable.
Tan Kin Lain
Employment Law Ireland | BusinessAndLegal.ie
Redundancy in Ireland
Redundancy in Ireland and your entitlements are provided for in the Redundancy Payments acts 1967-2007 and claims under this legislation must be made to the Employment Appeals Tribunal and will be heard by a Rights Commissioner in the first instance or by a direct claim to the Employment Appeals tribunal.
- Employers Obligations to Employees
- Employment Rights
- Find A Job-6 Great Places To Check Out
- Payment of Wages-The Legal Position
- Termination of Employment
- Terms of Employment
- The Contract Of Employment
- Unfair Dismissal | Unfair Dismissals In Ireland
- Work Permits-Big Changes in Ireland
- Working Time And Rest Periods-Organization Of Working Time Act 1997
- Workplace Safety-An Employer’s Duties
As you can see from the above employment legislation is extensive but complex. Even though you can make your own claim to the Employment Appeals tribunal or to a Rights Commissioner you would be well advised to contact a solicitor to do so on your behalf to ensure that your employment rights are upheld successfully.
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