Dear Mr. Tan
I've few policies under NTUC Income which bought many years ago.
Recently in Jan 08, I bought another policy called "VIVOLIFE" for my child aged 12 believing that it provides good returns. Lately, I received a letter from NTUC Income announcing the change of bonuses. I did not fully understand the impact of the changes until reading your blog. I thank you for defending our rights.
I'm contemplating to cancel this new policy. I understand that I'll get nothing if the policy cancel during the 1st year. I'm prepared to lose it and will not support the NTUC in future if they proceed with their unfair policies.
REPLY
Thank for for telling me about this matter.
Monday, May 5, 2008
Is there room for welfare in Singapore?
Comment posted in my blog (edited)
I talked to a Taiwanese friend who works for a Taiwan multi-national company. I commented about the government policy that allowed too many foreign workers aimed at the cost-competitiveness of the country. This has indirectly resulted in older workers not being able to find jobs or have to compete with low-paying foreign workers who feed a family in his home country of lower standard of living. I opined that maybe the government policy should be tightened.
She was surprised to hear my views, and offered another perspective. The use of foreign workers is unavoidable, and is part of globalisation. It is happening in many countries, e.g. Australia, Taiwan, Malaysia and Europe. Even at the specialist level, the substitution of local labour with cheaper foreign labour is unavoidable.
The key is whether the government have instituted enough social welfare policies to help the population in times of needs and defray their cost as much as possible. For example, the Taiwanese government has a very comprehensive medical care program for all her citizens. The cost of medical is low as it is subsidised heavily. She finds Singapore's medical expenses ridiculous and wondered how the poor would be able to afford it.
In Taiwan and Australia, the government have entrusted itself to take care of all her citizens who have contributed all their life to the good of the country. In Singapore, we call these welfare states as being unsustainable. But is it really that way? Have we looked at it seriously?
How is it that an insurance company can operate profitably to insure and take care of the ill and sick. Why is it that the government cannot risk pool effectively with the economy of scale for four million population that are compulsory customers of the national medical program?
Maybe it is timely to relook at the assumption that heavily subsidized medical or social welfare policies are not sustainable for a country like Singapore. Has the assumption changed from the time when Singapore was still a developing country, to the present time when Singapore is growing with all its might, investing billions into other countries.
We can use our surpluses to help Singaporeans to tide over in times of need. Would it be possible to just take out a tiny 0.5% of the budget allocated to GIC to achieve a program that can help create a sustainable health care system or other social policies?
Perhaps the other political parties can add value and suggest alternatives - instead of just critisizing the government. Sadly, the other political parties are lacking in substance and I would not entrust my future with them.
Someone said, "To enter politics, a leader must have passion. He wants to shape the destiny of the country and improve the lives and standard of living of people. He also wants to have a place in history of good things he has done for the country and people. "
I talked to a Taiwanese friend who works for a Taiwan multi-national company. I commented about the government policy that allowed too many foreign workers aimed at the cost-competitiveness of the country. This has indirectly resulted in older workers not being able to find jobs or have to compete with low-paying foreign workers who feed a family in his home country of lower standard of living. I opined that maybe the government policy should be tightened.
She was surprised to hear my views, and offered another perspective. The use of foreign workers is unavoidable, and is part of globalisation. It is happening in many countries, e.g. Australia, Taiwan, Malaysia and Europe. Even at the specialist level, the substitution of local labour with cheaper foreign labour is unavoidable.
The key is whether the government have instituted enough social welfare policies to help the population in times of needs and defray their cost as much as possible. For example, the Taiwanese government has a very comprehensive medical care program for all her citizens. The cost of medical is low as it is subsidised heavily. She finds Singapore's medical expenses ridiculous and wondered how the poor would be able to afford it.
In Taiwan and Australia, the government have entrusted itself to take care of all her citizens who have contributed all their life to the good of the country. In Singapore, we call these welfare states as being unsustainable. But is it really that way? Have we looked at it seriously?
How is it that an insurance company can operate profitably to insure and take care of the ill and sick. Why is it that the government cannot risk pool effectively with the economy of scale for four million population that are compulsory customers of the national medical program?
Maybe it is timely to relook at the assumption that heavily subsidized medical or social welfare policies are not sustainable for a country like Singapore. Has the assumption changed from the time when Singapore was still a developing country, to the present time when Singapore is growing with all its might, investing billions into other countries.
We can use our surpluses to help Singaporeans to tide over in times of need. Would it be possible to just take out a tiny 0.5% of the budget allocated to GIC to achieve a program that can help create a sustainable health care system or other social policies?
Perhaps the other political parties can add value and suggest alternatives - instead of just critisizing the government. Sadly, the other political parties are lacking in substance and I would not entrust my future with them.
Someone said, "To enter politics, a leader must have passion. He wants to shape the destiny of the country and improve the lives and standard of living of people. He also wants to have a place in history of good things he has done for the country and people. "
Buy unit trusts with Fundsupermart
Fundsupermart charges 1.75% for the upfront fee to invest in the unit trusts in a RSP (i.e. regular savings plan). This is a low fee, as it is less than 3% that is being charged by most other unit trusts and investment-linked funds. 100% of the monthly savings is invested, compared to low "allocation rates" that take away more than 18 months of savings by an ILP policy.
I spoke to the Fundsupermart personnel who told me the following:
> I can invest cash or CPF savings
> The payments are done automatically, after the authorisation has been signed
> There are no additional charges
This sounds like a good way to make long term investment. I will arrange for all members of my family to visit the Fundsupermart office to sign the forms to open the accounts, bank authorisation, etc. They can have $x of monthly investment deducted from my bank account.
They can learn how to manage their accounts through the internet. By educating them, they will be able to manage the investments in unit trusts on their own in the future.
The next step is to decide on how to choose the unit trusts. I shall be looking at the following:
> well diversified
> invested mostly in blue chips
> low expense ratio (less than 1.3% p.a.)
If you have any tips, please send to kinlian@gmail.com. This will save me from making detailed research.
I believe that DollarDex and POEMS may have similarly attractive offers. If they send some details to me, I shall post them in this website.
I spoke to the Fundsupermart personnel who told me the following:
> I can invest cash or CPF savings
> The payments are done automatically, after the authorisation has been signed
> There are no additional charges
This sounds like a good way to make long term investment. I will arrange for all members of my family to visit the Fundsupermart office to sign the forms to open the accounts, bank authorisation, etc. They can have $x of monthly investment deducted from my bank account.
They can learn how to manage their accounts through the internet. By educating them, they will be able to manage the investments in unit trusts on their own in the future.
The next step is to decide on how to choose the unit trusts. I shall be looking at the following:
> well diversified
> invested mostly in blue chips
> low expense ratio (less than 1.3% p.a.)
If you have any tips, please send to kinlian@gmail.com. This will save me from making detailed research.
I believe that DollarDex and POEMS may have similarly attractive offers. If they send some details to me, I shall post them in this website.
Sunday, May 4, 2008
Personal attack
I have to block a comment which make reference to a "comeback kid". This is personal and unnecessary. In other respects, the comment is well written. Please avoid being personal, and present the facts fairly.
Right and just will prevail
Dear Kin Lian,
I read the articles in your blog I am sure you will get the support you need. I do not have any NTUC Income policy that is affected. Finally the right and just will prevail. Unfortunately in our society the poor and the helpless people are made to pay for the greed of others. We need champions like you to stand up from time to time to fight for their right. God Bless.
I read the articles in your blog I am sure you will get the support you need. I do not have any NTUC Income policy that is affected. Finally the right and just will prevail. Unfortunately in our society the poor and the helpless people are made to pay for the greed of others. We need champions like you to stand up from time to time to fight for their right. God Bless.
Increase in motor insurance premiums
Several people have informed me about the large increase in motor insurance premiums this year.
I advised them to shop around for the lowest rates by calling the hotlines of the insurance companies. Here are the telephone numbers:
http://www.tankinlian.com/faq/motord.html
Some motorists have told me about savings of more than 20% by shopping around.
I advised them to shop around for the lowest rates by calling the hotlines of the insurance companies. Here are the telephone numbers:
http://www.tankinlian.com/faq/motord.html
Some motorists have told me about savings of more than 20% by shopping around.
Restructuring of bonus
Someone posted in my blog that the restructuring of the bonus rates is sound actuarial practice. He (she) even suggested that this is what I would have done, if I were in charge of NTUC Income.
I have to disappoint this person. In my view, the restructuring of the bonus is unfair and is detrimental to the interest of policyholders. It contravenes their "reasonable expectation".
There is no need to restructure the bonus, unless the solvency is at threat. This is not the case, coming from a year of high investment yield. If this is the real reason (and I doubt it), then it should be stated openly and the cut in bonus should apply to all policies.
I do not like a large part of my policies' bonuses to be unvested, as it can be taken away at any time. I do not like the manner in which this restructuring has been done.
I have to disappoint this person. In my view, the restructuring of the bonus is unfair and is detrimental to the interest of policyholders. It contravenes their "reasonable expectation".
There is no need to restructure the bonus, unless the solvency is at threat. This is not the case, coming from a year of high investment yield. If this is the real reason (and I doubt it), then it should be stated openly and the cut in bonus should apply to all policies.
I do not like a large part of my policies' bonuses to be unvested, as it can be taken away at any time. I do not like the manner in which this restructuring has been done.
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