Thursday, September 10, 2009

Good return from policies taken in the past

Hi Mr Tan,
I am a FISCA member. I have some Income policies that have matured or will be maturing soon, as follows:

a) Growth (SP endowment) taken for 15 years, invested $25,000, maturity sum $53,591
b) Growth (SP endowemnt) taken for 15 years, invested $14,430, maturity sum $21,435
c) Growth (SP endowemnt) taken for 15 years, invested $21,645, maturity sum $32,151
d) EIS Endownment taken for 16 years, annual premium $6,213, maturity sum $158,052

Am I getting a good and fair return?

LHY

REPLY

The return is as follows:
15 year Growth (case a,b, c): 5.2% p.a.
16 year EIS endowment (case d) 5.3% p.a.

The return is good. You've got a good deal. The return is better than similar policies taken with other insurance companies (based on other examples that I have seen).

However, this attractive return is for policies taken with NTUC Income in the past. I understand that the return for policies taken now are much lower.

Please ask many people to join FISCA

Student volunteers of FISCA

Some students wish to volunteer to help the work of FISCA, but they cannot afford the membership subscription of $36.

FISCA accept volunteers who do not need to be members, unless they wish to. Go to www.fisca.sg to enrol as a volunteer. We hope that those volunteers who have a source of income will also help FISCA financially by being a member.

Tan Kin Lian

FISCA's views on MAS new regulations on investment products

Letter published in Today paper, 11 September 2009

The Financial Services Consumer Association (FISCA) was recently established to educate consumers about financial matters and to guide them on the choice of suitable financial products for their long term investments.

FISCA wishes to express our support for the following proposed regulations by the Monetary Authority of Singapore on the sale of investment products to retail consumers:

a) Financial institution to ensure marketing and advertising materials is "fair and balanced"
b) Financial institution to provide simplified product disclosure document
c) Provide institution to provide cooling off period (7 days)

We understand that it will be a challenge to agree on what is “fair and balanced” as it may differ from the perspective of the seller and the buyer. FISCA will make our contribution from the perspective of consumers.

FISCA is strongly in favour of the simplified product disclosure document, which has to be not more than four pages and to be in a question and answer format. To improve the impact of this approach, we suggest that the simplified product disclosure documents should be posted on the MAS website, to allow consumers to compare similar products offered by financial institutions

This comparison will make it easy for independent experts to analyse the product from the perspective of consumers and compensate for the relative weaker position of consumers in understanding the fairness of the terms of the product. FISCA will happy to organise the independent experts to provide this service and to publish the findings in our website, www.fisca.sg.

FISCA strongly welcomes the introduction of a cooling off period. We hope that it can be increased to 14 days, as has been practised for the sale of life insurance products.

The MAS regulation is stated to be for “investment products” and is stated to include “life insurance products”. FISCA believes that term insurance and health insurance products are not investment products and should be specifically excluded, for the avoidance of any doubt. There is no need for a financial adviser to be involved in the sale of these products, as this would significantly add to the cost of these non-investment products. I hope that MAS can clarify on this matter.

Tan Kin Lian
Protem President, FISCA

Financial Advisers can volunteer for FISCA

FISCA welcomes financial advisers, who share the aims of the association, to join us as volunteers and help in the evaluation, research and other work.

We will also provide opportunities for these financial advisers to offer their service for a fair remuneration, that is based on the actual time spent and not a commission that is tied to the recommended product.

Some FISCA members, who had bad experience with financial advisers or relationship managers, may be suspicious of these advisers, but the suspicion can be dispelled by honesty and sincerity.

If you wish to volunteer, send an email to kinlian@gmail.com.

Tan Kin Lian

8th anniversary of terrorist attack on World Trade Center, NY

Today is September 11, 2009. It is the 8th anniversary of the terrorist attack on the World Trade Center, New York. Read here.

Obama's speech to Congress about health care

Obama pushes healthcare reform plan


Full speech - 52 minutes, 26 standing ovations.

Kennedy's letter to Obama

A touching letter between two great leaders who are dedicated to public service.

Quotes
... to salute your leadership in giving our country back its future and its truth.

... For me, this cause stretched across decades; it has been disappointed, but never finally defeated. It was the cause of my life.

... I learned that you will not yield to calls to retreat - that you will stay with the cause until it is won.

... you have also reminded all of us that it concerns more than material things; that what we face is above all a moral issue; that at stake are not just the details of policy, but fundamental principles of social justice and the character of our country.

... I entered public life with a young President who inspired a generation and the world. It gives me great hope that as I leave, another young President inspires another generation and once more on America's behalf inspires the entire world.

Future of FISCA

Someone posted an anonymous comment that FISCA would not survive two years. Although he has a negative motive (from the way that he said it), it is true that FISCA will have to face many challenges, and that there are many vested interest that wish to see it fail.

FISCA will succeed if it is able to get the support of consumers. FISCA needs financial resources to carry out its work to educate its members and look after its interest. The membership subscription of $36 will not be sufficient to meet its financial needs.

I hope that there will be supporters who are willing to make a Donation (say $50 or more) towards FISCA. Please be generous, if you wish to see FISCA succeed. You can make your donation here.

Lehman Collapse - one year later

Read this story.

Payout on life insurance policy

Are you getting a fair payout on your life insurance policy that you has recently matured or was surrendered? Give your particulars here. I will give you an analysis of the yield, to be compared with similar policies from other insurers.

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