ExINCOME CEO Tan Kin Lian shall declare Conflict of interest
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I cant believe my eyes when i read the retired CEO of NTUC INCOME
Insurance Co--op ,
,Tan Kin Lian,advised people NOT to buy participating
insurance(plans with bonus),but buy term plans.
When he stepped down from INCOME in Feb 2007,after 30 years
as CEO,82 % of assets in participating plans!!
http://www.income.com.sg/aboutus/annreport/2007.pdf
pg 19
http://tankinlian.blogspot.com/2008/07/low-cost-insurance-and-investment-funds.html
If u ask all u know and those buying insurance,how many % of them
just buy(A) term plan or
(B)participating plan plus term plan
as supplements?
2.My 2 nd question is why he now asks people
buy direct from insurance co.
I say 4 letters word when I read this.
INCOME ,as well as many Insurance co. here and over the world,
depends on agents,now called,Financial Advisers,to eduacte,
sell and provide personal services to clients.
During his 30 yrs term as CEO,INCOME also adopted this
agent scheme.In less than a year after he stepped down,
he totally changed his mind.
Now he made a 180 degree turn!
Why?
Is it because :
Tuesday, July 22, 2008
Low cost insurance and investment funds
I am now working as a consultant to a life insurance company in Singapore. It intends to launch low cost insurance and investment funds in early 2009...
Generally, my advice is:
1. Buy low cost term life and medical insurance to protect your earnings
2. Invest your savings in a low cost fund to get an attractive return
3. Avoid high cost and complicated financial products
4. Educate yourself to make the right choice
5. Buy directly, to avoid paying the high commission insurance agentsHe should know FA have to spent much effort and time to
eduacte and promote plans.It is damn reasonable for them
to earn commission.I am puzzled why he dumps agents now,
after they earned his salary and bonus for the past 30 years?
Declare of possible conflict of interest in his blog is a mustThe learned insurance veteran shall declare clearly his
possible conflict of interest in his blog and advices/reply.
I know his has thousands of supporters and this thread will offend them.
But i just tell u the truths.
I respect his willingness to show his valuable and inside knowledges.
What troubles me are his total changes from what he promoted
during his term as CEO.
What efforts has he spent to promote
Term Plan and direct sale during his great leadership in INCOME?
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I am also troubled by his advices to young people
just to buy insurance :
When you get married and have family responsiblilities, but a term insurance policy to cover you for 3 to 5 years of your income.
http://tankinlian.blogspot.com/2008/07/advice-for-young-people.html
Wednesday, July 16, 2008
Advice for young people
There are 3 points i dunt agree:
timing to buy insurance
term plan(pro and con)
and the amount of coverage.
1.To buy a insurance after getting marry is too late.
Even there is nobody depends on u,u have to have insurance coverage
NOT LATER THAN secondary graduation.
Accidents and illness may strike any time.
No parents want to collect insurance compensations arising
from his kids misforunate.
But if something really happen,who will take care of your parents?
Insurability may disappear over night.
When u are eligible,u are a honey to FA.
When u have problems to get approval,u are just a
dumped client card---not insurable or high rating.
Very few FA or their managers want to take this trouble.
who will be most likely eligible for insurance,ie
social and economic factors.
reasonablly good health, physcially and mentally
medical history of your family
not bankcrupt
no serious criminal records
not involved in serious civil suit
no high debts(who know if u do silly thing after a certain period)
Nowadays,to get a insurance approved not so easy.
Who can tell me u or me still can read this forum few weeks later,
not to mention few years later!!
APPLY NOW!!(sound a advertiments.But i dunt name any co.)
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2.Term Plan--pros and cons
Term plan is cheap.But not a trendy and very hard to tell your
clients that they cant get any return or profits from insurance !!
MAS and stake holders (insurance co,Insurance professional bodies etc)
shall review their effort to educate public in insurance,in the past few decades.
Public just mix up insurance,savings and investment.
One of the drawback of term plan is it may not be renewable
if your health change.Or the Plan allow u to renew but with high rating.
In life plan,touch wood,if u are sick after u get approval,
u are still covered and without paying extra premium,ie no
higher rating.
Another is the term plan may not be convertiable to life plan.
Even u at ,say aged 60,
can afford to buy and want to
leave somethings for your grandson to study ,
u will feel sad if they dunt renew your term plan.
there is no such problem in life plan.
3.Coverage of 3 to 5 years of your income is too low
If we follow Mr Tan advices,the coverage for a man in the street will be like this.
Let say Z earn a SG median income(just estimated),
say S$3500 per month.5 years gross income is $210,000
ok,say 250,000.Tell me ,my frens,is it enough for a widow
or widower?
SPOUSE DO NOT WANT TO TALK ABOUT INSURANCE.
BUT WIDOW/ER WANT COMPENSATION,THE MORE
IS BETTER.
I use the replacement of insured's income concept to calculate
the coverage required.With a estimated yield or return AND the insured's
net income,we calculate the insurance coverage required.
ie Net annual income divided by estimated return from
insurance compensation = coverage required
Net annual income
Assume Z spends 20% of his gross income,
including cash and all CPF,in income tax,transport,entertainments,
clothing etc.His total balance of cash and CPF will be $2800.
ie $33,600 per year.ie net annual income.
Estimated return from insurance compensation
This is the fund to generate income to replace Z's net income
for the family to survive IN LONG TERM.
So the savings or investments must be almost risk
free or very low risk.
This is very hard to guess.Fixed deposit just 0.5 to 1.5 %.
Share and funds,woooo.I dunt know.
So,i just pick one from the air say 5% to illustrate.
Coverage required
$33,600 / 0.05=$672,000
I know u will say wa!!!
How to achieve the required coverage
buy a life plan plus maxium term riders,say 5 years term riders.
and mortage insurance(is a must)
In SG,term riders in the range of 2 to 5 times of life plan.
ask FA the best options.FA is one of your important fren in your
life.The future of your family is on their hands.Buy them lunch
or give them gifts.Trust me,The return is very high.
U must buy a mortage insurance .It is damn cheap,
compared with life plans and even term plan.
MRTA---mortgage reducing term plan.
Even u dunt eat lunch few days in a month,u MUST
take up MRTA.This will save your family from a lot of pains
when u cant produce income,either not around
or disable.Use hamburger to exchange for home!!
few sets of this in a month can exchange for
WHY SHOULD I LEAVE SO MUCH TO MY WIFE
A poor widow cannot choose his job or the man she will
sleep with.
But a widow with reasonable insurance pay out
can choose NOT TO WORK to stay at home
to take care the kids 24/7 or choose her job.
The best is she can choose no need sleep with another
man or a man she dunt like.
So guys,it is YOUR CHOICE NOW affecting the CHOICE of your wife
IN THE FUTURE when u not around,touch wood.
u may say i dunt have kid.No need to think so long.
Unless u dunt sleep with your wife from today,
who knows when u will has kid?
In insurace,one day late or one week late is too late.
FULL STOP.
.
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Buy terms plans and invest in low cost funds?This is something the investment savvy people would do. There is only conflict of interest when there is a better alternative and he gave advice against the interest of the client. Where is the conflict when most independent financial advisers would recommend term plans and low cost funds? That is the smart way to maximise retirement savings.
The real conflict of interest lies with commissioned based agents who recommend poor products with high commissions for clients.
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I agree with lionnoisy on your point of view. However, I would like to correct some of your wordings.
1) Term plans Renewability
There are term plans which are GUARANTEED renewable. Which means that you can renew your policy, despite your health deterioration.
2) Term plans Returns
If you survive the period of coverage, the premiums paid will be FULLY RETURN to the client.
3) Whole Life plans
Term plans offer a cheaper premium and a higher coverage than whole life plans.
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this is what happens when corporate interests are not in the best interests of the consumer.
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Why is a noisy litter lion talking like he knows better than a 30 year insurance expert veteran?
don't malu yourself lah moisy lion, your credibility versus TKL ?
oh my gawd. spend more than procreating lah. spend less time trying to counter for the sake of countering lah.
wow, you dam credible siah.
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I think that one should be selective in accepting advises.
Be it a 30 year veteran or a 1 year rookie. It does not naturally means that advises from 30 year experience is correct and a 1 year is wrong.
Both parties are from different era, with an age gap of at least 30. Both parties have different perspective, and i don agree with the saying where 'the old ones are always correct'.
Financial planning is a process that utilises theory and application technique. You can agree with all the things he said, but it does not mean that it applies to you.
One should be open to accept advises, but have to be selective.
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Originally posted by Kheetat 86:
I agree with lionnoisy on your point of view. However, I would like to correct some of your wordings.
1) Term plans Renewability
There are term plans which are GUARANTEED renewable. Which means that you can renew your policy, despite your health deterioration.
2) Term plans Returns
If you survive the period of coverage, the premiums paid will be FULLY RETURN to the client.
3) Whole Life plans
Term plans offer a cheaper premium and a higher coverage than whole life plans.
Looks like you are in the insurance industry. Replied your mail.
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Thanks for your replied. Greatly appreciated.
MediShield is the basic medical insurance that covers large hospital bills. It is automatically enrolled as long as you contributed to CPF or choose to opt out.
If you have purchase any CPF-approved medical insurance with AIA, Prudential, Great Eastern, Aviva or NTUC, you will be able to enhance your coverage to as-charged for most of the benefits.
This is how Medishield works.
Example: You are admitted to restructured hospital, class C ward for 10 days (including 8 days of ICU) for a heart operation, the total bill will come up to $5,850.
Assumed that the claimable amount is $5,850. You wll be required to pay a deductible amount of $1,000. Next, you have to contribute 10-20% of the co-insurance, which comes to $785.
So in total, you had claimt $4,065 from MediShield and only need to pay $1,785.
Above example extracted from the 'Enhancing MediShield' Booklet.
If you had not purchase the cheap Medishield, you would have to come up with the full sum of the bill, which is $5,850. That translate to your total medishield premium up to age 65.
Furthermore, on top of the benefit and claims, one important factor to consider is the eligibility to make the claim.
If you were unlucky to undergo the heart surgery without any medical insurance, you will be unable to make ANY claim that is related to your heart, even if you buy it the next day. As it is considered a pre-existing illness, it will be excluded.
Hope that can help you understand more about MediShield.
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A drunk wanders into the lounge of a hotel where an insurance symposium is being held, intent on causing trouble. He yells, "I think all insurance agents are crooks, and if anyone doesn't like it, come up and do something about it. "Immediately, a man runs up to the drunk and says, "You take that back! "The drunk sneers and replies, "Why, are you an agent?" "No," the man replies, "I'm a crook."
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They have changed my images.
Have any MOD edited my postings.
pl drop me a line if u have edited or deleted or altered.Tx
http://www.sgforums.com/forums/10/topics/325946
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Originally posted by Passive Income1:
A drunk wanders into the lounge of a hotel where an insurance symposium is being held, intent on causing trouble.
He yells, “I think all insurance agents are crooks, and if anyone doesn’t like it, come up and do something about it.
“Immediately, a man runs up to the drunk and says, “You take that back!
“The drunk sneers and replies, “Why, are you an agent?”
“No,” the man replies, “I’m a crook.”
This is funny!
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Tan hinted the topics in coming Sat!!
i have said about Chee Soon Juan--you are what you post.
Shall You need to endorse every single word or letter or figure
appearing in your posts,even u paste others' writing?
I think u need to .Readers would think that u agree the content of what
u copy and paste or people send to you then u paste on your posts.
This apply to a famous and learned person like Mr Tan.
@@@@@@@@
Tan posted a old report sent by a guy .The report quoted David
Marshal earned $8000 pm when he was CM.
We put aside how much David Marshal really earned when
he was Chief Minister from 1955 to 1956.Some said it may
be a typo.
Does Tan know what was the purchase power of $8000 pm
in 1955 and 1956?
I remember the earlies HDB 3 room flat costed few thousand .
In the comments of Tan's post,one said:
http://tankinlian.blogspot.com/2008/12/david-marshall-in-1994.html
I think a unskilled worker then earned below $50pm.
Let say Marshal one year salary can earn 2 houses only.
This was a big sum in 1956.
@@@@@@@@@@@@
Now we turn to Tan who may be too busy to think before he posted this.
Or he may be hinting his topics in the coming Saturday.
He likes mentioning hot topic of ministers pay recently!!
This borrowed post is just a prelude.
He alreday fired at ministers pay in Oct:
http://tankinlian.blogspot.com/2008/10/lost-sense-of-bonding-and-togetherness.html
now he posted again--
Lost the sense of bonding and togetherness
@@@@@@@@
Mr Tan,$8000 pm was not a peanut in mid 1950's!!Do u think so?
vvvvv
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Originally posted by lionnoisy:
I cant believe my eyes when i read the retired CEO of NTUC INCOME
Insurance Co--op ,
,Tan Kin Lian,advised people NOT to buy participating
insurance(plans with bonus),but buy term plans.
When he stepped down from INCOME in Feb 2007,after 30 years
as CEO,82 % of assets in participating plans!!
http://www.income.com.sg/aboutus/annreport/2007.pdf
pg 19
http://tankinlian.blogspot.com/2008/07/low-cost-insurance-and-investment-funds.html
If u ask all u know and those buying insurance,how many % of them
just buy(A) term plan or
(B)participating plan plus term plan
as supplements?
2.My 2 nd question is why he now asks people
buy direct from insurance co.
I say 4 letters word when I read this.
INCOME ,as well as many Insurance co. here and over the world,
depends on agents,now called,Financial Advisers,to eduacte,
sell and provide personal services to clients.
During his 30 yrs term as CEO,INCOME also adopted this
agent scheme.In less than a year after he stepped down,
he totally changed his mind.
Now he made a 180 degree turn!
Why?
Is it because :
Tuesday, July 22, 2008
Low cost insurance and investment funds
He should know FA have to spent much effort and time to
eduacte and promote plans.It is damn reasonable for them
to earn commission.I am puzzled why he dumps agents now,
after they earned his salary and bonus for the past 30 years?
Declare of possible conflict of interest in his blog is a mustThe learned insurance veteran shall declare clearly his
possible conflict of interest in his blog and advices/reply.
I know his has thousands of supporters and this thread will offend them.
But i just tell u the truths.
I respect his willingness to show his valuable and inside knowledges.
What troubles me are his total changes from what he promoted
during his term as CEO.
What efforts has he spent to promote
Term Plan and direct sale during his great leadership in INCOME?
Did you get an email from you masters telling you to attack Tan?
He earned $8,000 a month in the mid 1950s.
3:44 PMA bungalow hse in Frankel Estate (Siglap area) was abt S$30,000 (high side).
So he could buy 3.2 hses there on a yearly salary.
Say a minister today gets S$2 mill. He can buy maybe one hse in same area in one yr.