Consumers should be wary about making advance payments for private school fees, spa treatments or other services, or investing in investment schemes by unregulated bodies that promises a high rate of return.
Ask Mr. Tan
Thursday, November 25, 2010
Rising cost of health care
Many people are worried about the rising cost of health care. The insurance agent tell them that the solution is to buy private shield insurance. This is bad advice, especially for people who have a tight budget and do not have sufficient savings for their retirement.
My reasons are explained in several FAQs that can be found in my website, www.tankinlian.com/ask.aspx. You can search for them by using the keyword "Shield" or "health".
The insurance agents tend to exaggerate the need frequency and high cost of medical treatment to get people to buy private shield. Here are the reasons why you should avoid spending this money:
The cost of health care can increase 5 to 15 times for older people. If the buy private shield, the cost can be 2.5 to 4 times of Medishield. To keep the cost at a more manageable level, the elderly people insure under Medishield and pay a lower premium and a lower co-payment when they are hospitalised.
Private shield should only be bought by people who are wealthy and have more than enough savings for their retirement, and want to have the choice of their own doctor, and do not mind paying a higher premium and higher co-payments.
Tan Kin Lian
My reasons are explained in several FAQs that can be found in my website, www.tankinlian.com/ask.aspx. You can search for them by using the keyword "Shield" or "health".
The insurance agents tend to exaggerate the need frequency and high cost of medical treatment to get people to buy private shield. Here are the reasons why you should avoid spending this money:
- Young people have a low incidence of serious illness
- If it happens, they can be treated at a low cost in a subsidized ward or will be paid by the employer
- By buying private shield, you have to pay a higher premium and a higher co-payment for treatment
- There is the risk of the claim under private shield being rejected due to non-disclosure or exclusion. You can read a few stories of rejected claims in my website.
The cost of health care can increase 5 to 15 times for older people. If the buy private shield, the cost can be 2.5 to 4 times of Medishield. To keep the cost at a more manageable level, the elderly people insure under Medishield and pay a lower premium and a lower co-payment when they are hospitalised.
Private shield should only be bought by people who are wealthy and have more than enough savings for their retirement, and want to have the choice of their own doctor, and do not mind paying a higher premium and higher co-payments.
Tan Kin Lian
Buying Term Insurance
A few consumers have asked me to tell them how they can buy Term Insurance. I asked them to go to my website (www.tankinlian.com/ask.aspx) and search for "Term". There are a few FAQs that help them to find the right premium and to go to the right website. I do not know the answer myself, so I have to make the same search.
Pay the right price
Consumers often ask me the following:
- Is it good to buy private shield, compared to Medishield?
- Should I stay on pension or take the lump sum?
- Should I invest in an ILP?
The correct answer should be - it depends on the price. If you pay the right price relative to the benefits, then the policy is good. If you are paying an excessive price, then the policy is bad.
For example, a civil servant asked me whether it is better to keep the pension or take a lump sum. It depends on how much the retiree gets to give up the pension. After providing the figures, it is easier to make a judgement by comparing the different options. This type of question cannot be answered "in a vacuum".
For example, a civil servant asked me whether it is better to keep the pension or take a lump sum. It depends on how much the retiree gets to give up the pension. After providing the figures, it is easier to make a judgement by comparing the different options. This type of question cannot be answered "in a vacuum".
In the FAQs in my blog, I educate consumers about what is the right price, and how to avoid being over-charged. You can go to my website, www.tankinlian.com/ask.aspx to search for the relevant FAQ. You have to enter a keyword, such as "investment linked" or "shield" or "pension" and see the FAQs that are relevant to the subject. If you cannot find the FAQ, you can change the keyword and try again.
When you find the FAQ, you can read it on the browser, or download it into your PC. You can also print it out, if you need to read it offline.
Spend some time to search and read the relevant FAQ before you send a question to me. You can get a better answer when you are educated. You should not rely on other people to think for you.
Tan Kin Lian
Alan Shadrake's case - reply by Singapore High Commissioner
The Singapore High Commissioner to UK replied to the Guardian newspaper about Alan Shadrake's case.
SGEP
SGEP
Victims of spas that closed down
Dear Sir,
I would like to raise to your attention that many people who had signed up for spa packages with True Spa and Subtle Senses are still paying for credit card installments even after these 2 spas have stop operations.
http://www.facebook.com/home.php?sk=group_170620749615018&ap=1#!/home.php?sk=group_170620749615018&view=doc&id=171669619510131
Is it possible if you could explain to the consumers how this can be possible?
Someone asked why can’t consumers just pay banks the factoring fee they earned and then the credit cards go after the spas for the rest?
The Government has chosen to remain silent about all these or take a watch and see stance. I feel there is a lot of injustice in Singapore.
The victims have started a Facebook group which is now about 500 people. Even though there 18000 customers, many have been fearful of defamation charges or trouble if they make noise. I heard someone who sued True Spa last year was countersued for defamation by True Spa.
Where is the justice in Singapore? Do you know how we can ask the government to take action to swiftly freeze the voluntary liquidation of Subtle Senses? I think instead of using customers’ advance payments to operate the spa businesses, True Spa is now an empty shell and we are not sure where all the millions of dollars of customers’ monies is now.
Hope the government can do something quickly. Otherwise the monies will just disappear after being transferred here and there.
Thank you for your kind attention.
Ally
I would like to raise to your attention that many people who had signed up for spa packages with True Spa and Subtle Senses are still paying for credit card installments even after these 2 spas have stop operations.
http://www.facebook.com/home.php?sk=group_170620749615018&ap=1#!/home.php?sk=group_170620749615018&view=doc&id=171669619510131
Is it possible if you could explain to the consumers how this can be possible?
Someone asked why can’t consumers just pay banks the factoring fee they earned and then the credit cards go after the spas for the rest?
The Government has chosen to remain silent about all these or take a watch and see stance. I feel there is a lot of injustice in Singapore.
The victims have started a Facebook group which is now about 500 people. Even though there 18000 customers, many have been fearful of defamation charges or trouble if they make noise. I heard someone who sued True Spa last year was countersued for defamation by True Spa.
Where is the justice in Singapore? Do you know how we can ask the government to take action to swiftly freeze the voluntary liquidation of Subtle Senses? I think instead of using customers’ advance payments to operate the spa businesses, True Spa is now an empty shell and we are not sure where all the millions of dollars of customers’ monies is now.
Hope the government can do something quickly. Otherwise the monies will just disappear after being transferred here and there.
Thank you for your kind attention.
Ally
Pension or lump sum?
Should a Singapore civil servant who reaches retirement age keep the pension or give it up for a lump sum payment? Read this article to learn about what to look for and how to make your decision.
Singapore Casinos causing problems to Johore familes
Singapore casinos are causing problems to Johore familes. Read SGEP
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