Sunday, November 14, 2010
Suzy Orman on Life Insurance
Suzy Orman is a financial adviser who appears on CBNC Life on Sunday. She appeared in several videos posted in Youtube. She gave sensible advice about life insurance. Watch this video.
Existing life insurance policies - continue or terminate?
Many people who learned that their life insurance policy gives a poor yield asked me, "Should I continue or terminate the policy?"
I asked them to study this FAQ and do the calculations.
I asked them to study this FAQ and do the calculations.
33.3% discount on Financial Planning book
There were several orders for the 3-copy bundle of my financial planning book, which is available at a 33.3% discount. Three people can join together to buy the book and enjoy the discounted price of $8 per copy, i.e. $24 for 3 copies). You can also buy 3 copies and give 2 away to your children or friends.
This book helps them to plan better for their financial future and get a better yield on their long term savings.
This book helps them to plan better for their financial future and get a better yield on their long term savings.
Why only term insurance plans make sense now
Published in the Straits Times Forum page
MR GIDEON Lee ('Buyers, not agents, decide the products they want'; last Friday) asked why I am advocating term insurance when the insurance cooperative that I headed had been selling whole-life and investment-linked policies for 30 years.
During my time, the whole-life and endowment policies were sold with distribution costs that were much lower than comparable products in the market. The effect of deduction was about 20 per cent over 25 years, compared to the 40 per cent for most policies today.
In the past, the cooperative also distributed high rates of bonuses out of the surplus, giving a high yield to policyholders on these old policies.
The letter writer quotes the example of a term insurance premium that charges $200 a month. This is an exaggeration. A young person can buy $300,000 in sum assured under the Singapore Armed Forces (SAF) group insurance scheme and pay only $38.40 a month. This is available to SAF soldiers and operationally ready national servicemen, and their spouses. To buy this amount of protection under a whole-life or unit-linked policy, the consumer usually has to pay a premium that is 10 to 20 times higher.
Some dishonest agents deliberately quote a higher cost for term insurance to persuade the consumer to buy the alternative policy that charges a higher premium and pays a fatter commission.
Mr Lee said correctly that the distribution cost is not paid entirely as commission to the agent. Part of it is paid to the agent's manager and spent on lavish overseas trips and other sales incentives. Regardless of how the money is spent, the consumer does have to pay the total distribution cost.
The writer said the commission is given for selling the product and not for advice. If this is the case, why are these people called financial advisers, consultants or other impressive names and not life insurance salesmen?
The writer is wrong in saying that I am advocating a one-size-fits-all solution. My aim is to educate consumers
to invest their savings in a low-cost investment fund, rather than a life insurance policy, to earn a better long-term yield and achieve greater flexibility.
Tan Kin Lian
http://www.straitstimes.com/STForum/Story/STIStory_603264.html
My guidance on how to invest savings in a low cost investment fund, and why this is more flexible to meet the changing needs of consumers is explained in my book, Practical Guide on Financial Planning, available here.
MR GIDEON Lee ('Buyers, not agents, decide the products they want'; last Friday) asked why I am advocating term insurance when the insurance cooperative that I headed had been selling whole-life and investment-linked policies for 30 years.
During my time, the whole-life and endowment policies were sold with distribution costs that were much lower than comparable products in the market. The effect of deduction was about 20 per cent over 25 years, compared to the 40 per cent for most policies today.
In the past, the cooperative also distributed high rates of bonuses out of the surplus, giving a high yield to policyholders on these old policies.
The letter writer quotes the example of a term insurance premium that charges $200 a month. This is an exaggeration. A young person can buy $300,000 in sum assured under the Singapore Armed Forces (SAF) group insurance scheme and pay only $38.40 a month. This is available to SAF soldiers and operationally ready national servicemen, and their spouses. To buy this amount of protection under a whole-life or unit-linked policy, the consumer usually has to pay a premium that is 10 to 20 times higher.
Some dishonest agents deliberately quote a higher cost for term insurance to persuade the consumer to buy the alternative policy that charges a higher premium and pays a fatter commission.
Mr Lee said correctly that the distribution cost is not paid entirely as commission to the agent. Part of it is paid to the agent's manager and spent on lavish overseas trips and other sales incentives. Regardless of how the money is spent, the consumer does have to pay the total distribution cost.
The writer said the commission is given for selling the product and not for advice. If this is the case, why are these people called financial advisers, consultants or other impressive names and not life insurance salesmen?
The writer is wrong in saying that I am advocating a one-size-fits-all solution. My aim is to educate consumers
to invest their savings in a low-cost investment fund, rather than a life insurance policy, to earn a better long-term yield and achieve greater flexibility.
Tan Kin Lian
http://www.straitstimes.com/STForum/Story/STIStory_603264.html
My guidance on how to invest savings in a low cost investment fund, and why this is more flexible to meet the changing needs of consumers is explained in my book, Practical Guide on Financial Planning, available here.
Prismacolor Pencils
I just bought my first set of Prismacolor pencils and I must say I really love them. What I love about them is that they are soft and creamy and offer a full pallette of vibrant colors.
I am an amateur artist but full time architect and I find Prismacolor pencils incredibly useful in my everyday work.There is 24 colored pencils in the set that I got and blending colors is really easy.The colors in my art work, which is pretty amateurish, are really vibrant and coloring with them is nearly like applying some kind of cream to the paper.I intend getting a set of Scholar pencils for my 11 year old daughter for coloring her pictures in school.
Misconceptions about insurance
Published in Straits Times Online Forum
I REFER to the ongoing discussion on insurance products (Mr Gideon Lee, "Buyers, not agents, decide the products they want..."; Nov 5), and would like to highlight some misconceptions.
Whole-life policies that "give back" the premium come with higher price tags. For a young healthy male who is just starting his career, a coverage of $500,000 for term insurance costs around $2,000 a year, whereas a whole-life policy with the same coverage could cost around $10,000 a year.
The difference in the premiums between the term and whole-life policy is invested by the insurance company and a significant portion is pocketed by the company before the remainder is returned to the customer.
Whole-life insurance policies provide only the illusion of "giving back" some of the premium paid. It is akin to pulling money from your right pocket, taking some of that for myself, and putting the remaining amount back in your left pocket.
I simply do not see how this is a good deal when consumers can pocket the difference, save and invest the money by themselves. The claim that many customers prefer a policy that "gives them" something at the end shows their lack of understanding of the purpose of insurance - that it is meant for protection against catastrophic effects and not for savings. So one should not expect anything back if the catastrophic event does not occur.
Garrett Goh
http://www.straitstimes.com/STForum/OnlineStory/STIStory_603220.html
I REFER to the ongoing discussion on insurance products (Mr Gideon Lee, "Buyers, not agents, decide the products they want..."; Nov 5), and would like to highlight some misconceptions.
Whole-life policies that "give back" the premium come with higher price tags. For a young healthy male who is just starting his career, a coverage of $500,000 for term insurance costs around $2,000 a year, whereas a whole-life policy with the same coverage could cost around $10,000 a year.
The difference in the premiums between the term and whole-life policy is invested by the insurance company and a significant portion is pocketed by the company before the remainder is returned to the customer.
Whole-life insurance policies provide only the illusion of "giving back" some of the premium paid. It is akin to pulling money from your right pocket, taking some of that for myself, and putting the remaining amount back in your left pocket.
I simply do not see how this is a good deal when consumers can pocket the difference, save and invest the money by themselves. The claim that many customers prefer a policy that "gives them" something at the end shows their lack of understanding of the purpose of insurance - that it is meant for protection against catastrophic effects and not for savings. So one should not expect anything back if the catastrophic event does not occur.
Garrett Goh
http://www.straitstimes.com/STForum/OnlineStory/STIStory_603220.html
Online Business Strategy-Step 2-Keyword Research | BusinessAndLegal.ie
You will spend quite a bit of time writing content and promoting your site in order to rank well in the search engines and attract visitors for free which is a cornerstone of this online business strategy and you do not want to spend your time flogging a dead horse.
So, lets take an example of how you would carry out your keyword research and keep in the forefront of your mind what you are trying to achieve.
You are looking for a keyword or more accurately a key phrase which will in the first instance form the basis of your site. So lets say you are going to create a site about pens.
Noisy carnival at Bishan
Posted at request of Huang HW
I live in front of Bishan Active Park. Carnivals and other activities are very often held on week-ends on this field. Every-time this happens, the noise is unbearable. I take my family out to avoid the noise.
My limit was really reached on Sunday(15 Nov 2010). The duration and magnitude of the noise was not particularly bad but I have two children, one having an 'O' level paper on Monday (15 Nov) and another in the midst of taking the 'A' levels.
How can my children prepare for their examinations. Many of you may be suggesting complaining to the police or my MP. But the event is LivEnabled@the Park officiated by a Minister Lim!
To add insult to injury, I can hear load knocking noises as they are clearing the site as I am writing this. Its now 40 minutes past mid-night!
Can somebody help!
Huang HW
CNA report
I live in front of Bishan Active Park. Carnivals and other activities are very often held on week-ends on this field. Every-time this happens, the noise is unbearable. I take my family out to avoid the noise.
My limit was really reached on Sunday(15 Nov 2010). The duration and magnitude of the noise was not particularly bad but I have two children, one having an 'O' level paper on Monday (15 Nov) and another in the midst of taking the 'A' levels.
How can my children prepare for their examinations. Many of you may be suggesting complaining to the police or my MP. But the event is LivEnabled@the Park officiated by a Minister Lim!
To add insult to injury, I can hear load knocking noises as they are clearing the site as I am writing this. Its now 40 minutes past mid-night!
Can somebody help!
Huang HW
CNA report
Interesting articles in SGEP
There are a few interesting articles in SGEP. One is an explanation about Quantitative Easing and why it will not work and the day of reckoning will come. This is important for investors to study.
There are also some postings about election platform entitled "Its about You" and the quality candidates that will be contesting the election from the Singapore Democratic Party.
General Election Portal.
There are also some postings about election platform entitled "Its about You" and the quality candidates that will be contesting the election from the Singapore Democratic Party.
General Election Portal.
Get a Fair Deal
Here are some tips on how to get a fair deal on your insurance - what to look out for, and what to avoid.
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