Dear Mr. Tan,
Is there a role for agents to sell low cost insurance and investment funds?
REPLY
The customer can buy from the following channels:
a) call center
b) internet
c) agent
As the agent earns a low commission, the customer has to contact the agent by telephone or visit the agent's office to complete the transaction.
Read this FAQ:
http://www.tankinlian.com/faq/lower.html
Thursday, March 27, 2008
Cost of insurance
Dear Tan Kin Lian
My agent said that my ILP covers are personal accident, medical card, 36 disease and permanent disability. If I want to buy a separate policy to cover the above, I have to pay a higher premium. Is this true?
REPLY
You can compare the cost of the insurance covers under your ILP with the benchmark premium mentioned in this FAQ:
http://www.tankinlian.com/faq/benchmark.html
You can use the term insurance rates to compare with the death benefit, including permanent disability. The premium to cover 36 critical illness is 1.5 times of the term insurance rates (as a rough guide).
The ILP will probably charge you a rate that increases each year. The benchmark premium shows the level premium for the period. You can add the total premium for the period (say 20 years) to make a comparison.
My agent said that my ILP covers are personal accident, medical card, 36 disease and permanent disability. If I want to buy a separate policy to cover the above, I have to pay a higher premium. Is this true?
REPLY
You can compare the cost of the insurance covers under your ILP with the benchmark premium mentioned in this FAQ:
http://www.tankinlian.com/faq/benchmark.html
You can use the term insurance rates to compare with the death benefit, including permanent disability. The premium to cover 36 critical illness is 1.5 times of the term insurance rates (as a rough guide).
The ILP will probably charge you a rate that increases each year. The benchmark premium shows the level premium for the period. You can add the total premium for the period (say 20 years) to make a comparison.
Best insurance plan for your child
As a parent, you will probably ask the following questions:
a) What insurance protection should I buy for my child?
b) How can I save for my child's education fund?
An insurance agent will usually sell an endowment or critical illness to you to cover your child. The agent can earn commission of one or two years of your premium. The plan will give a low return to you.
Read this FAQ for an alternative approach:
http://www.tankinlian.com/faq/childlife.html
a) What insurance protection should I buy for my child?
b) How can I save for my child's education fund?
An insurance agent will usually sell an endowment or critical illness to you to cover your child. The agent can earn commission of one or two years of your premium. The plan will give a low return to you.
Read this FAQ for an alternative approach:
http://www.tankinlian.com/faq/childlife.html
Earn a return of 6% to 24% per annum?
How can you earn this high rate of return?
By lending to yourself. Read this FAQ:
http://www.tankinlian.com/faq/return.html
By lending to yourself. Read this FAQ:
http://www.tankinlian.com/faq/return.html
Fuel consumption for your car
Here is a method to calculate the fuel consumption for your car:
a) Each time you top up the tank, record the mileage meter and litres of petrol filled
b) Find the distance travelled between two top-ups, and the litres of petrol used
c) Calculate the number of kilometers travelled for each liter of petrol
If you know the fuel consumption of your car (i.e. the number of kilometers travelled per litre of petrol), you can work out the cost per kilometer based on the current price of petrol.
Record the results for your car in the comment below.
a) Each time you top up the tank, record the mileage meter and litres of petrol filled
b) Find the distance travelled between two top-ups, and the litres of petrol used
c) Calculate the number of kilometers travelled for each liter of petrol
If you know the fuel consumption of your car (i.e. the number of kilometers travelled per litre of petrol), you can work out the cost per kilometer based on the current price of petrol.
Record the results for your car in the comment below.
Sunset at Manila Bay
Here is a picture of the sunset at Manila Bay, taken from a yacht.
Later, when the yacht was out in the bay and the night has fallen, there was a 4 string quartet playing nostalgic songs on the yacht. It was nice to feel the breeze as the yacht sailed slowly in the bay and hear the captivating sounds of the violins.
This experience reminds me of the song... You belong to my heart, now and forever .... And our love has its start, not long ago ... We were gathering stars while a million guitars played our love song ... When I said I love you, every beat of my heart said it too ....
Good advice from an uncle
Dear Tan Kin Lian,
I purchase the investment link policy(ILP) for 1 year. My uncle told me that ILP is not worth to buy. The insurance company and agent earn more commission. His advise is:
1) Don't join investment and insurance together, will definitely not benefit the policy holder.
2) For insurance, buy term life insurance which is cheaper and coverage higher.
3) For investment, buy mutual funds by our own.
Then I consult my agent and told him what my uncle told me.
My agent said that:
1) Term life policy do not cover the 36 diseases and medical card.
2) ILP coverage are Personal Accident(PA), Medical Card, 36 disease, Permanent Disability.
3) If I want to buy a policy which cover up all the above without investment, the premium pay is even more higher than ILP.
4) He will get higher commission if I buy all those policy separately.
Is that true? Hope can receive your valuable advise.
REPLY
I agree with your uncle. The agent does not give you the best advice.
Read these FAQs:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/choice.html
I purchase the investment link policy(ILP) for 1 year. My uncle told me that ILP is not worth to buy. The insurance company and agent earn more commission. His advise is:
1) Don't join investment and insurance together, will definitely not benefit the policy holder.
2) For insurance, buy term life insurance which is cheaper and coverage higher.
3) For investment, buy mutual funds by our own.
Then I consult my agent and told him what my uncle told me.
My agent said that:
1) Term life policy do not cover the 36 diseases and medical card.
2) ILP coverage are Personal Accident(PA), Medical Card, 36 disease, Permanent Disability.
3) If I want to buy a policy which cover up all the above without investment, the premium pay is even more higher than ILP.
4) He will get higher commission if I buy all those policy separately.
Is that true? Hope can receive your valuable advise.
REPLY
I agree with your uncle. The agent does not give you the best advice.
Read these FAQs:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/choice.html
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