Dear Mr. Tan,
1. In your FAQ: Save For Your Child's Education (http://www.tankinlian.com/faq/child.html), it mentioned that an investment-linked plan gives a better return as compared to an education endowment plan. If I intend to save $150 a month over 21years, what type of plan should I buy to go with a 21 years decreasing term insurance plan? Is it advisable to buy the plans from different insurance company?
2. I read about DIY insurance from the website (http://www.askdrmoney.com/Ins_DIY.htm). May I know what is a "recurring single-premium ILP"?
3. If I intend to DIY for my child's education fund, what plans should I consider?
REPLY
I am disappointed that most insurance companies take away too much of the policyholder's premiums. Read this FAQ:
http://www.tankinlian.com/faq/ilp.html
At one time, I was prepared to recommend the Flexilink or the Ideal (ID7) from NTUC Income. I am not sure if they are still keen to offer these low cost plans. You can ask their business center.
You will have to wait for someone to introduced indexed funds in Singapore. I hope to get a new life insurance company to offer it within the next 6 to 12 months. Read this FAQ:
http://www.tankinlian.com/faq/low.html
In the meantime, it is best to invest in the StateStreet Trakker Fund (i.e. the STI ETF). You have to pay about $3,300 to buy 1,000 shares. Perhaps you can save in a bank account each month and buy this fund when you reach the minimum amount.
A recurring single premium plan is a ILP where you make a large one time investment to start the policy. They allow you to make recurring payments into the plan and be freed of the heavy upfront charge applicable to regular premuim savings.
Friday, May 2, 2008
Shocked with bonus cut
I received a copy of this letter written by a policyholder to the appointed actuary of NTUC Income.
Dear
I'm glad to receive the INCOME 2008 annual Bonus Statement yesterday but was shocked with the contents.
My family of 5 have a total of 25 insurance policies with NTUC INCOME, nothing else but our trust on the house brand that give us protection and more reasonable returns.
I'm deeply disappointed with the new formulas used in calculating the annual bonus.
My family 5 Living Policies got the greatest hits. Based on the presentation by your agent, I accepted these Whole Life Policies and hope that in case needs arise, I can anticipate the Cash Value at that point of times in need. Now that INCOME told us
that we can expect the good returns after we leave this world and amount is up to INCOME mercy at that time. We have lost on planning of our insurance asset and unable to anticipate the amount we can get.
Your cut of about 50% in annual bonus for Whole Life Policy give a BIG BLOW to INCOME Policy Holders.
Dear
I'm glad to receive the INCOME 2008 annual Bonus Statement yesterday but was shocked with the contents.
My family of 5 have a total of 25 insurance policies with NTUC INCOME, nothing else but our trust on the house brand that give us protection and more reasonable returns.
I'm deeply disappointed with the new formulas used in calculating the annual bonus.
My family 5 Living Policies got the greatest hits. Based on the presentation by your agent, I accepted these Whole Life Policies and hope that in case needs arise, I can anticipate the Cash Value at that point of times in need. Now that INCOME told us
that we can expect the good returns after we leave this world and amount is up to INCOME mercy at that time. We have lost on planning of our insurance asset and unable to anticipate the amount we can get.
Your cut of about 50% in annual bonus for Whole Life Policy give a BIG BLOW to INCOME Policy Holders.
Visitors hit a new record 1,318
The visitors to my blog hit a new record, 1,318 visitors, on Friday 2 May 2008. It surpassed the previous record on Tuesday.
The average daily visitors has now passed 1,000. It hit 1,021 visitors for the past week. It seems that the bonus cut of NTUC Income is attracting many more visitors to my blog.
The average daily visitors has now passed 1,000. It hit 1,021 visitors for the past week. It seems that the bonus cut of NTUC Income is attracting many more visitors to my blog.
Uncompetitive motor premium rates
Dear Mr. Tan,
Recently my Motor Insurance was due for renewal with NTUC Income. I rang the customer service with the intention of renewing my insurance. I was shocked to learn that it has increased from $690 to $815 after 50% NCB and 5% direct discount and 5% loyalty discount.
When I asked if the premium can be lowered since I have been insuring with NTUC Income for 8 years, I was told it was company's policy and the premium is fixed. I then called AA and was offered a premium of $766 with another insurance company.
My question is why can't NTUC look at the insurance coverage of each individual and fix the premium. All my family insurance are covered by NTUC Income, yet I find NTUC Income to be rigid and does not consider the loyalty placed by an individual
Can I have your comments?
REPLY
I suggest that you pass the feedback direct to the new management of NTUC Income. You can send to sq@income.com.sg.
I also experienced a large increase in premium on my wife's motor car recently. I was able to get a much lower premium rate from another insurance company. I decided to move my motor insurance to the new company, in spite of having insured with NTUC Income for many years, without any claim.
Recently my Motor Insurance was due for renewal with NTUC Income. I rang the customer service with the intention of renewing my insurance. I was shocked to learn that it has increased from $690 to $815 after 50% NCB and 5% direct discount and 5% loyalty discount.
When I asked if the premium can be lowered since I have been insuring with NTUC Income for 8 years, I was told it was company's policy and the premium is fixed. I then called AA and was offered a premium of $766 with another insurance company.
My question is why can't NTUC look at the insurance coverage of each individual and fix the premium. All my family insurance are covered by NTUC Income, yet I find NTUC Income to be rigid and does not consider the loyalty placed by an individual
Can I have your comments?
REPLY
I suggest that you pass the feedback direct to the new management of NTUC Income. You can send to sq@income.com.sg.
I also experienced a large increase in premium on my wife's motor car recently. I was able to get a much lower premium rate from another insurance company. I decided to move my motor insurance to the new company, in spite of having insured with NTUC Income for many years, without any claim.
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