Benefit Illustration - Single Premium Whole Life policy

A customer sent me a Benefit Illustration for a Single premium Whole Life policy. My analysis is shown here. It shows the key points that you need to see in the Benefit Illustration.

Hi Mr Tan,

Thanks you so much for the detailed analysis. I think a lot of people who bought insurance policy did not look deep into the details and think it through. I think your analysis is very detailed, step by step and easy to understand. I hope more readers can benefit from your experience and make informed decisions on their future financial planning.

Scam

I searched for the definition of "scam" in the internet. I was directed to this article on "fraud" in Wikipedia. Fraud is a criminal offense, and has to be prosecuted by the state. It is not a matter of "buyer's beware".

Fair treatment to all

I heard that some investors who were active in organising the class action on the credit linked notes had been offered more attractive terms of compensation than other investors in similar situations. They accepted the compensation and discontinued taking the lead in the class action.

I do not have the chance to verify the truth of this statement, as the terms of the settlement are covered under "non disclosure agreements". If this is true, then we have a situation where people are treated differently "for commercial reasons", according to their special position. Is this a new form of corruption?

In some countries, these allegations will be invested by the authority to ensure that there is fair treatment to all affected parties. I hope that our regulators in Singapore will be willing to take this step.

Tan Kin Lian

Profitable Group

Here is a news posted by the Profitable Group under the title "Mr. Tan Kin Lian".

The source of my posting is from the Guardian website: Don't bank on this land for making a profit
http://www.guardian.co.uk/money/2009/feb/21/capital-letters

I asked the lawyer of Profitable Group if they had written to the Guardian to correct the untruths. They have not replied to me.

Here are more information on this subject matter. You can make your own judgement.

Ponzi scheme

Some unregulated investment products promised a high return to the investors. The promoters pay the attractive return to the early investors by using the money invested by the subsequent investors.

The news spread about the attractive return. New investors joined in. The earlier investors rolled over their investments.

This is a classic ponzi scheme. It is being practiced now under various types of products - land plots, oil seeds, wine and other exotic products. As these investments are not regulated, the investors were not aware about the nature of the operations.

All ponzi schemes will collapse, sooner or later. Apart from the loss due to the attractive return paid to the earlier investors, the promoters of a ponzi scheme will siphon off a large part of the invested money. The accounts will be falsified to show a healthy position.

When the company is investigated and closed down, they will set up a new company with a new name, and find a new place to operate.

Singapore is an attractive place fro these promoters, due to the lack of regulatory control, and the gullibility of the small investors.

Investing in unregulated financial products

Be careful about investing in unregulated financial products. Someone, probably an investor who lost money, sent this message to me:

Please look-out for a "tonne" of investors who lost $$$... to company X selling UK & US land. They have been selling Oil Estates program similar to another Oil pods scheme. Now they have diverted to US land leaving the investors in the lurch. Many of the investors still unaware of what hit them...have you heard about them?

This company were under investigation by the Financial Services Authority of the UK under the name Y but they changed their name now to X.

Benefit illustration of life insurance products

I wish to have some benefit illustrations of the life insurance products that are now being sold. I will analyse them, but will not disclose your identity. Please scan and send them to kinlian@gmail.com

Health care reform in USA

How much will it cost? Read this report.