Someone has started a new poll on the restructure of bonus in this forum:
http://forum.channelnewsasia.com/viewtopic.php?t=157026&highlight=ntuc
Sunday, June 22, 2008
Like a bird
"Doctor, I'm worried about my wife. She thinks she's a bird".
"Well, you better bring her to see me."
"I can't. She's flown south for the winter."
"Well, you better bring her to see me."
"I can't. She's flown south for the winter."
Unable to comment on specific products
Hi, Mr. Tan,
I have signed up for the following life insurances:
1. Life Protector Plus is uniquely designed to give you maximum and permanent life protection at a very affordable rate. It provies up to 140% extra coverage in addition to your chosen sum insured till age 65. Protection for loss of life, terminal illness and total and permanent disability (TPD). In the event of TPD, a lump sum benefit will be paid. Choice of supplementary benefits available for additional benefits and protection.
2. Nest Egg is a regular premium participating endowment plan which allows me to participate in the performance of the participating fund in the form of bonuses that are not guaranteed.There will be no bonus paid on death or TPD claim. IRR for a sum assured 50k, cover term of 20years and premium term is 15 years is 3.6%
Are these products suitable for me?
P
REPLY
I am not able to comment on these two specific products. Generally, I dislike them due to the high upfront cost to pay commission to the agent.
I advise consumers to buy term insurance and invest the difference in a low cost investment fund.
Read these FAQs:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/savings.html
I have signed up for the following life insurances:
1. Life Protector Plus is uniquely designed to give you maximum and permanent life protection at a very affordable rate. It provies up to 140% extra coverage in addition to your chosen sum insured till age 65. Protection for loss of life, terminal illness and total and permanent disability (TPD). In the event of TPD, a lump sum benefit will be paid. Choice of supplementary benefits available for additional benefits and protection.
2. Nest Egg is a regular premium participating endowment plan which allows me to participate in the performance of the participating fund in the form of bonuses that are not guaranteed.There will be no bonus paid on death or TPD claim. IRR for a sum assured 50k, cover term of 20years and premium term is 15 years is 3.6%
Are these products suitable for me?
P
REPLY
I am not able to comment on these two specific products. Generally, I dislike them due to the high upfront cost to pay commission to the agent.
I advise consumers to buy term insurance and invest the difference in a low cost investment fund.
Read these FAQs:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/savings.html
Living Policy give poor value
Someone asked me why I now advise against the Living policy - when I previously encouraged its sale as CEO of Income.
When Income kept its expenses low and distributed its bonuses fairly to policyholders, its Living policies and other products gave good value, compared to similar products in the market.
I bought two Living policies during the past years. Recently, I found to my great disappointment, that the cash value on one of the policy has still not reached the breakeven point after 12 years. This was due to the bonus cut during the crisis years.
Although the investment yield has improved significantly (with an average yield of 7.8%), the bonus cuts have still not been restored.
In fact, the cash value is far short of the "asset share" of my policy. The asset share is computed based on the premiums paid and investment income earned, less the actual expenses of the policy.
If insurance companies continue to treat their policyholders unfairly, incur high expenses and give a poor cash value that is is far below the "actual experience", I have to advise people to avoid all life insurance products - except for term insurance.
Life insurance is not a means for agents to earn high commissions and insurance companies to earn high profits, by giving a poor deal to customers.
When Income kept its expenses low and distributed its bonuses fairly to policyholders, its Living policies and other products gave good value, compared to similar products in the market.
I bought two Living policies during the past years. Recently, I found to my great disappointment, that the cash value on one of the policy has still not reached the breakeven point after 12 years. This was due to the bonus cut during the crisis years.
Although the investment yield has improved significantly (with an average yield of 7.8%), the bonus cuts have still not been restored.
In fact, the cash value is far short of the "asset share" of my policy. The asset share is computed based on the premiums paid and investment income earned, less the actual expenses of the policy.
If insurance companies continue to treat their policyholders unfairly, incur high expenses and give a poor cash value that is is far below the "actual experience", I have to advise people to avoid all life insurance products - except for term insurance.
Life insurance is not a means for agents to earn high commissions and insurance companies to earn high profits, by giving a poor deal to customers.
Sand and stone
TWO FRIENDS WERE WALKING THROUGH THE DESERT.
DURING SOME POINT OF THE JOURNEY, THEY HAD AN ARGUMENT,
AND ONE FRIEND SLAPPED THE OTHER ONE IN THE FACE.
THE ONE WHO GOT SLAPPED WAS HURT,
BUT WITHOUT SAYING ANYTHING,WROTE IN THE SAND
'TODAY MY BEST FRIEND SLAPPED ME IN THE FACE'.
THEY KEPT ON WALKING,UNTIL THEY FOUND AN OASIS,
WHERE THEY DECIDED TO TAKE A BATH.
THE ONE WHO HAD BEEN SLAPPED GOT STUCK IN THE MIRE
AND STARTED DROWNING, BUT THE FRIEND SAVED HIM.
AFTER HE RECOVERED FROM THE NEAR DROWNING,HE WROTE ON A STONE:
'TODAY MY BEST FRIEND SAVED MY LIFE'.
THE FRIEND WHO HAD SLAPPED AND SAVED HIS BEST FRIEND ASKED HIM,
'AFTER I HURT YOU, YOU WROTE IN THE SAND
AND NOW,YOU WRITE ON A STONE, WHY?'
THE FRIEND REPLIED
'WHEN SOMEONE HURTS US WE SHOULD WRITE IT DOWN IN SAND,
WHERE WINDS OF FORGIVENESS CAN ERASE IT AWAY.
BUT, WHEN SOMEONE DOES SOMETHING GOOD FOR US,
WE MUST ENGRAVE IT IN STONE WHERE NO WIND CAN EVER ERASE IT'.
LEARN TO WRITE YOUR HURTS IN THE SAND
AND TO CARVE YOUR BENEFITS IN STONE.
THEY SAY IT TAKES A MINUTE TO FIND A SPECIAL PERSON,
AN HOUR TO APPRECIATE THEM,
A DAY TO LOVE THEM,
BUT THEN AN ENTIRE LIFE TO FORGET THEM.
DURING SOME POINT OF THE JOURNEY, THEY HAD AN ARGUMENT,
AND ONE FRIEND SLAPPED THE OTHER ONE IN THE FACE.
THE ONE WHO GOT SLAPPED WAS HURT,
BUT WITHOUT SAYING ANYTHING,WROTE IN THE SAND
'TODAY MY BEST FRIEND SLAPPED ME IN THE FACE'.
THEY KEPT ON WALKING,UNTIL THEY FOUND AN OASIS,
WHERE THEY DECIDED TO TAKE A BATH.
THE ONE WHO HAD BEEN SLAPPED GOT STUCK IN THE MIRE
AND STARTED DROWNING, BUT THE FRIEND SAVED HIM.
AFTER HE RECOVERED FROM THE NEAR DROWNING,HE WROTE ON A STONE:
'TODAY MY BEST FRIEND SAVED MY LIFE'.
THE FRIEND WHO HAD SLAPPED AND SAVED HIS BEST FRIEND ASKED HIM,
'AFTER I HURT YOU, YOU WROTE IN THE SAND
AND NOW,YOU WRITE ON A STONE, WHY?'
THE FRIEND REPLIED
'WHEN SOMEONE HURTS US WE SHOULD WRITE IT DOWN IN SAND,
WHERE WINDS OF FORGIVENESS CAN ERASE IT AWAY.
BUT, WHEN SOMEONE DOES SOMETHING GOOD FOR US,
WE MUST ENGRAVE IT IN STONE WHERE NO WIND CAN EVER ERASE IT'.
LEARN TO WRITE YOUR HURTS IN THE SAND
AND TO CARVE YOUR BENEFITS IN STONE.
THEY SAY IT TAKES A MINUTE TO FIND A SPECIAL PERSON,
AN HOUR TO APPRECIATE THEM,
A DAY TO LOVE THEM,
BUT THEN AN ENTIRE LIFE TO FORGET THEM.
Insurance for kidney failure patient
Hi Mr. Tan,
Hope that you can advise me. I am a kidney failure patient. and have two young children. What kind of insurance policy should I take up for them using my name or my wife's name? And also what type of insurance should I get for myself in my condition.
CH
REPLY
I hope that you are personally covered under Medishield or a private Shield plan. It is important that you have this cover for your own medical expenses.
You can buy a Medishield plan for your children. There is no need to buy life insurance for them. You should have savings to take care of your future needs. Read these FAQs:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/fptips.html
You will find it difficult to get life insurance due to your medical condition. Perhaps you can buy personal accident insurance. Read this FAQ:
http://www.tankinlian.com/faq/pa.html
Hope that you can advise me. I am a kidney failure patient. and have two young children. What kind of insurance policy should I take up for them using my name or my wife's name? And also what type of insurance should I get for myself in my condition.
CH
REPLY
I hope that you are personally covered under Medishield or a private Shield plan. It is important that you have this cover for your own medical expenses.
You can buy a Medishield plan for your children. There is no need to buy life insurance for them. You should have savings to take care of your future needs. Read these FAQs:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/fptips.html
You will find it difficult to get life insurance due to your medical condition. Perhaps you can buy personal accident insurance. Read this FAQ:
http://www.tankinlian.com/faq/pa.html
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