Deceptive and predatory practices

During a wide-ranging interview with DailyFinance at AOL
headquarters in New York City this week, Stiglitz, who served as
chief economist of the World Bank from 1997-2000 and is currently
University Professor at Columbia University, explained how the
availability of cheap money (thanks in large measure to former Fed
Chairman Alan Greenspan), combined with outright mortgage fraud
and deceptive and predatory lending practices put millions of people
into homes they couldn't afford and caused real estate prices to
skyrocket. That created a bubble that would inevitably pop.

My comment
Deceptive and predatory practices are also found in Singapore. They
have to be addressed by the authority.

Structure of a Life Insurance Policy

This article explains the structure of a life insurance policy in simple terms for a lay person. It helps you to understand the role of a life insurance policy and how to pay the right price for its benefits. More importantly, it helps you to avoid paying too much for a life insurance policy that can become a financial burden to you for a lifetime.

Ask Mr. Tan

Conversation with a Job Entrant

This job entrant is being pushed to buy a life insurance policy that he does not fully understand and will take away nearly 50% of his future savings. Read how to avoid this type of risk that falls on most young people.

Ask Mr. Tan.

Life insurance - past and present

Dear Mr Tan,

I have been following your blog for a number of years and I find that it offers good advice on financial and insurance planning. However, I cannot reconcile your views advising against buying whole life insurance policies to buying term policies. When you were heading NTUC Income, the company was actively promoting whole life insurance policies. Now you are advising against buying whole life policies because of the poor returns. Has something drastically changed ? If so, what has or have changed ? Please kindly enlighten me.

Thank you.

 

REPLY

When I headed NTUC Income, I offered whole life policies that gave a good yield to the policyholders. I bought many of these policies for myself and my family.

If you can find a policy that gives a good yield, you can buy it. But if it gives a poor yield and takes away 40% or more of your future accumulated premiums, you should avoid it. This matter has been covered in my website and blog on many occasions. 

Read this FAQ:

http://tankinlian.com/Admin/File.aspx?id=93

A fair deal

I met a successful life insurance agent in Indonesia. He is experienced in selling health insurance and single premium products. He explained to me about how he is able to convince his clients about the value of his product.

I asked him if he would sell a whole life or investment linked product where 50% of the accumulated premium is taken away from the consumer. The policy pays a high commission to the agent. He considered this matter and replied "no". He felt that it would not be fair to give a poor deal to the consumer. He was quite surprised that this type of product is being sold in Singapore.

Surveys

There are a few surveys that are still open. Please click on the "Survey" tab on the right or the following:
http://tankinlian.blogspot.com/search/label/Survey

Layout for a Book

I am looking for a person to do the layout for my new book. I have written it in a Word document and need to have it laid out in A5 size. There are some images that need to be enhanced and touched up. You need to have a knowledge of Word and Paint. If you are interested, please send an e-mail to kinlian@gmail.com.