Many readers dare not ask the agent to explain the key questions. They are confused by the explanation given by the agent. They sent an e-mail to me for advice.
My usual reply is:
> The agent can earns $1,000 or more to sell a life policy to you
> The agent has a duty to explain the product clearly to you
> You should ask for explanation on the Benefit Illustration
> Ask for the explanation in writing
> You should never buy the product, if you are not clear about it
> I am not able to give personal advice to you
> You have to make your own judgement
Wednesday, September 10, 2008
Advice from my blog and website
Hi Mr. Tan,
I have been reading your articles on the high costs of whole life insurance. Could you help to comment on the below quotations from Income for a 10 yr and 20yr Vivolife policy? I would like to know the explanation of distribution cost and effect of deduction using the below.
(Details removed)
REPLY
My advice is given in my blog:
http://tankinlian.blogspot.com/2008/09/advice-on-vivolife.html
Please read my blog and website for the information:
http://www.tankinlian.blogspot.com/
http://www.tankinlian.com/
I have been reading your articles on the high costs of whole life insurance. Could you help to comment on the below quotations from Income for a 10 yr and 20yr Vivolife policy? I would like to know the explanation of distribution cost and effect of deduction using the below.
(Details removed)
REPLY
My advice is given in my blog:
http://tankinlian.blogspot.com/2008/09/advice-on-vivolife.html
Please read my blog and website for the information:
http://www.tankinlian.blogspot.com/
http://www.tankinlian.com/
Free Public Transport
This article describes cities that have free public transport:
http://en.wikipedia.org/wiki/Zero-fare_public_transport
A friend, who sent the information to me, confirmed that the information on Auckland is true:
Auckland, New Zealand
A free CBD loop service links the ferry terminus, railway station, universities, theatres, casino, galleries and shopping districts using hybrid electric buses. It operates from 8am to 6pm, 7 days, at 10 mins interval, but not all buses are hybrid.
The quality of service is quite good, although it does get crowded at certain time, eg. school hours, lunch time, etc.
http://en.wikipedia.org/wiki/Zero-fare_public_transport
A friend, who sent the information to me, confirmed that the information on Auckland is true:
Auckland, New Zealand
A free CBD loop service links the ferry terminus, railway station, universities, theatres, casino, galleries and shopping districts using hybrid electric buses. It operates from 8am to 6pm, 7 days, at 10 mins interval, but not all buses are hybrid.
The quality of service is quite good, although it does get crowded at certain time, eg. school hours, lunch time, etc.
World Class Public Transport System
Read about my suggestions to improve the public transport system in Singapore, and comments from other readers as follows:
http://theonlinecitizen.com/2008/09/ptw-from-third-world-to-first/#comment-20915
http://theonlinecitizen.com/2008/09/ptw-from-third-world-to-first/#comment-20915
Inadequate cash value
Dear Mr. Tan,
Thank you for telling us about the special report in The New Paper. I surrendered my life policy recently and received a refund that is much lower than the premiums that I paid. I have written to MAS to ask them to take up the case with my insurance company. I hope that they will act. Do you think that the insurance company will pay more to me?
http://tankinlian.blogspot.com/2008/09/new-paper-truth-of-life-insurance.html
REPLY
Let us wait for the reply. Wish you all the best.
Thank you for telling us about the special report in The New Paper. I surrendered my life policy recently and received a refund that is much lower than the premiums that I paid. I have written to MAS to ask them to take up the case with my insurance company. I hope that they will act. Do you think that the insurance company will pay more to me?
http://tankinlian.blogspot.com/2008/09/new-paper-truth-of-life-insurance.html
REPLY
Let us wait for the reply. Wish you all the best.
Tuesday, September 9, 2008
Take a bigger loan at a low interest rate
Hi Mr. Tan,
I am in the process of looking for a housing loan. My friend advised me not to pay off the loan so fast, but to use my available cash for investments. Is it a wise thing to do? He showed me some calculations, to convince me that I would be better off taking loans and investing my cash. But won't I be losing from the high interest the bank charges?
REPLY
If the interest rate on your loan is low (say 2.6% for HDB loan), you should be able to earn more than than this interest rate from your invetment, if it is invested wisely. You should avoid investment that has a high charge, especially if it is marketed to you by an agent or financial adviser.
However, if the interest rate is more than 4%, it is not worthwhile to take the investment risk.
I am in the process of looking for a housing loan. My friend advised me not to pay off the loan so fast, but to use my available cash for investments. Is it a wise thing to do? He showed me some calculations, to convince me that I would be better off taking loans and investing my cash. But won't I be losing from the high interest the bank charges?
REPLY
If the interest rate on your loan is low (say 2.6% for HDB loan), you should be able to earn more than than this interest rate from your invetment, if it is invested wisely. You should avoid investment that has a high charge, especially if it is marketed to you by an agent or financial adviser.
However, if the interest rate is more than 4%, it is not worthwhile to take the investment risk.
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