Sunday, September 7, 2008
Investing in NZD
Dear Mr Tan
What is your opinion of investing in the NZD at this point of time? What are the risks and rewards involved?
REPLY
Read this FAQ
http://www.tankinlian.com/faq/foreign.html
The NZD has corrected a lot from its high level. This seems to be an attractive level for a new investment.
What is your opinion of investing in the NZD at this point of time? What are the risks and rewards involved?
REPLY
Read this FAQ
http://www.tankinlian.com/faq/foreign.html
The NZD has corrected a lot from its high level. This seems to be an attractive level for a new investment.
Saturday, September 6, 2008
Another scam: Beware of Push Pockets ...
I RECEIVED THIS E-MAIL
While the scams are happening in Malaysia , it's a lesson worth noting for anyone of you who loves to travel. Be alert!!
I am sure you all have heard of 'pick pocket'. Now there is a new trend, 'push pocket'.
A few days ago a new type of crime has surfaced in town. It goes something like this:-
Somebody slips a hand-phone into your pocket, sometimes it could be just a wallet with an identity card and a few Ringgit.
A few minutes later, the 'owner' comes up and confronts you, the 'thief'. He makes a big commotion that you stole his stuff.
You, caught unaware, are then pulled aside by the 'owner' for a settlement you are intimidated and threatened that if you do not pay up, the police will be brought in. If you pay up, this 'owner' lets you go. If not, the police are brought in.
Another strange thing is that, there always seems to be a 'witness' to the your 'theft'.
I am told this often happens to foreigners at the Kuala Lumpur International Airport (KLIA) or even at LRT trains. Given that you're 'guilty until proven innocent' as far as the Malaysian police are concerned, I understand some poor people are in jail for these 'offences'.
At the KLIA, the 'owner' throws his hand-phone and wallet with the few Ringgit notes into the luggage trolley of a just arrived passenger. The drama unfolds a few minutes later.
The real culprit has easily convinced our Malaysian police to arrest the real victim (if he has not paid up the 'settlement' demand).
This is a very serious matter.
This is another form of extortionists operating in broad daylight. They are disgusting criminals who will do anything to rob and steal. The sickening part of the whole scenario is that unless you pay the 'quoted settlement' money, they will put you in real trouble by calling the police.
The real culprit gets back his hand-phone and wallet but the real victim (i.e. could be any one of us) is thrown into the police lock up and charged in court.
So do be very careful, otherwise you may end up as a 'thief' as you have no way to prove your innocence.
While the scams are happening in Malaysia , it's a lesson worth noting for anyone of you who loves to travel. Be alert!!
I am sure you all have heard of 'pick pocket'. Now there is a new trend, 'push pocket'.
A few days ago a new type of crime has surfaced in town. It goes something like this:-
Somebody slips a hand-phone into your pocket, sometimes it could be just a wallet with an identity card and a few Ringgit.
A few minutes later, the 'owner' comes up and confronts you, the 'thief'. He makes a big commotion that you stole his stuff.
You, caught unaware, are then pulled aside by the 'owner' for a settlement you are intimidated and threatened that if you do not pay up, the police will be brought in. If you pay up, this 'owner' lets you go. If not, the police are brought in.
Another strange thing is that, there always seems to be a 'witness' to the your 'theft'.
I am told this often happens to foreigners at the Kuala Lumpur International Airport (KLIA) or even at LRT trains. Given that you're 'guilty until proven innocent' as far as the Malaysian police are concerned, I understand some poor people are in jail for these 'offences'.
At the KLIA, the 'owner' throws his hand-phone and wallet with the few Ringgit notes into the luggage trolley of a just arrived passenger. The drama unfolds a few minutes later.
The real culprit has easily convinced our Malaysian police to arrest the real victim (if he has not paid up the 'settlement' demand).
This is a very serious matter.
This is another form of extortionists operating in broad daylight. They are disgusting criminals who will do anything to rob and steal. The sickening part of the whole scenario is that unless you pay the 'quoted settlement' money, they will put you in real trouble by calling the police.
The real culprit gets back his hand-phone and wallet but the real victim (i.e. could be any one of us) is thrown into the police lock up and charged in court.
So do be very careful, otherwise you may end up as a 'thief' as you have no way to prove your innocence.
Hurricanes in USA
The hurricanes have a name, starting with A, B up to Z using female names. After 26 hurricanes, a new series is started with A, B up to Z using male names. The current names are (male) Gustav, Hanna and Ike.
Gustav (which has just passed) was earlier feared to be as bad as Katrina a few years ago, but it finally did not cause much damage.
CORRECTION
The names of the hurricanes alternate between male and female names, starting from A followed by B, etc. Here is a list of names of hurricanes:
http://www.nhc.noaa.gov/aboutnames.shtml
Gustav (which has just passed) was earlier feared to be as bad as Katrina a few years ago, but it finally did not cause much damage.
CORRECTION
The names of the hurricanes alternate between male and female names, starting from A followed by B, etc. Here is a list of names of hurricanes:
http://www.nhc.noaa.gov/aboutnames.shtml
Friday, September 5, 2008
The New Paper - Truth of Life Insurance Payout
The New Paper has a special report on "The truth of Life Insurance Payout" in its
September 6 edition.
I recommend to all policyholders to read this special report. It shows that the amounts paid out to policyholders on a surrendered or matured policy is far short of the "asset share" of the policy. Many policyhoders are being paid far less than a "fair amount".
If you fall in this category, I suggest that you should write to the Monetary Authority of Singapore to ask them to take up the matter with your insurance company.
I have written to the Consumer Association to raise the following matter with MAS:
1. Is the amount paid to the policyholder of a surrendered or matured policy quite close to the "individual liability” in respect of the policy? Is the insurance company allowed to pay out an amount that is far short of this “individual liability”? The individual liability is required to be computed by the insurance company for each policy and reported in total in the annual return to MAS.
2. In the interest of transparency and fairness, can MAS require the insurance company to disclose the "individual liability", upon the request of the policyholder of a terminated policy, so that the policyholder is aware of the amount of the "individual liability" that is held back from him?
3. Is it fair for a policyholder, on surrender of a policy, to be getting back less than the premiums paid after 10 years or longer, when the insurance company is able to retain up to 40% of the "individual liability" from the policyholder?
4. Why is it not possible for Singapore to adopt the practice in Malaysia and other countries, which requires the insurance company to pay out the “asset share” on a terminated policy after it has been held for more than a certain period? The “asset share” is similar to the “individual liability” reported in the annual return to MAS. This payout appears to be fairer and is much higher than the cash value now given to a policyholder in Singapore.
5. Can MAS ask the insurance company to disclose the total cash value of all policies, to allow it to be compared with the “sum of the individual liability in respect of each policy” as reported in the annual return? This will allow the public to know the amount that is held back by the insurance company, if all the policies were terminated.
September 6 edition.
I recommend to all policyholders to read this special report. It shows that the amounts paid out to policyholders on a surrendered or matured policy is far short of the "asset share" of the policy. Many policyhoders are being paid far less than a "fair amount".
If you fall in this category, I suggest that you should write to the Monetary Authority of Singapore to ask them to take up the matter with your insurance company.
I have written to the Consumer Association to raise the following matter with MAS:
1. Is the amount paid to the policyholder of a surrendered or matured policy quite close to the "individual liability” in respect of the policy? Is the insurance company allowed to pay out an amount that is far short of this “individual liability”? The individual liability is required to be computed by the insurance company for each policy and reported in total in the annual return to MAS.
2. In the interest of transparency and fairness, can MAS require the insurance company to disclose the "individual liability", upon the request of the policyholder of a terminated policy, so that the policyholder is aware of the amount of the "individual liability" that is held back from him?
3. Is it fair for a policyholder, on surrender of a policy, to be getting back less than the premiums paid after 10 years or longer, when the insurance company is able to retain up to 40% of the "individual liability" from the policyholder?
4. Why is it not possible for Singapore to adopt the practice in Malaysia and other countries, which requires the insurance company to pay out the “asset share” on a terminated policy after it has been held for more than a certain period? The “asset share” is similar to the “individual liability” reported in the annual return to MAS. This payout appears to be fairer and is much higher than the cash value now given to a policyholder in Singapore.
5. Can MAS ask the insurance company to disclose the total cash value of all policies, to allow it to be compared with the “sum of the individual liability in respect of each policy” as reported in the annual return? This will allow the public to know the amount that is held back by the insurance company, if all the policies were terminated.
Life insurance products can give good value
Some people argued that whole life, whole life limited premium and other life insurance products can meet the needs of certain categories of people and can be considered as good products.
This is correct.
Life insurance products can be designed to be good for consumers. They become bad products when they are designed to pay high commission to the agent and give poor value to the consumer. This high cost is not disclosed to the consumer.
Unfortunately, most of the products in the Singapore market are designed to be high cost, good for the agent and bad for the consumer. Up to two years of the premium are taken away to pay the commission and marketing expenses. If the monthly premium is $300, the amount of the hard earng savings taken away from the policyholder can be as much as $7,200.
This is a lot of money to be taken away from the unsuspecting policyholder, and is not told to the policyholder at the point of sale. This fact is hidden in the Benefit Illustration among 20 pages of confusing information.
If the charges are kept at a reasonable level, say a maximum of half year's premium (which is still a lot of money) and this is clearly disclosed to the policyholder, then a whole life, endowment or investment linked policy can be considered to be a good product and is suitable for most people.
This is correct.
Life insurance products can be designed to be good for consumers. They become bad products when they are designed to pay high commission to the agent and give poor value to the consumer. This high cost is not disclosed to the consumer.
Unfortunately, most of the products in the Singapore market are designed to be high cost, good for the agent and bad for the consumer. Up to two years of the premium are taken away to pay the commission and marketing expenses. If the monthly premium is $300, the amount of the hard earng savings taken away from the policyholder can be as much as $7,200.
This is a lot of money to be taken away from the unsuspecting policyholder, and is not told to the policyholder at the point of sale. This fact is hidden in the Benefit Illustration among 20 pages of confusing information.
If the charges are kept at a reasonable level, say a maximum of half year's premium (which is still a lot of money) and this is clearly disclosed to the policyholder, then a whole life, endowment or investment linked policy can be considered to be a good product and is suitable for most people.
Annual General Meeting of NTUC Income
Two readers of my blog, SiewKhim and Falcon, have posted comments asking me to raise issues on behalf of policyholders at the next annual general meeting of NTUC Income.
I have posted a request for them to send their e-mail address to me, so that a meeting can be arranged.
I did not receive any response from SiewKhim. Falcon wrote an e-mail to me, but did not reply to my e-mail.
I like to ask them to contact me at kinlian@gmail.com.
I have posted a request for them to send their e-mail address to me, so that a meeting can be arranged.
I did not receive any response from SiewKhim. Falcon wrote an e-mail to me, but did not reply to my e-mail.
I like to ask them to contact me at kinlian@gmail.com.
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