Tuesday, December 25, 2012

Tuesday, December 4, 2012

oac - launch of mortgage protector advantage

 
oac or overseas assurance corporation, a wholly owned subsidiary of great eastern holdings and a member of the ocbc group has just launched a mortgage reducing term assurance plan, mortgage protector advantage which refunds all the premiums at the end of the policy term if no claim has been made. there is also a guaranteed surrender value of at least 40% of total premiums paid after policy has been in force for 7 years.

this is a first in the market as no other insurer offers a premium refund for similar class mrta products. 2 years ago, oac launched a refundable premium mortgage plan known as mortgage protector plus which differs from the current one in that it is priced to be a single premium plan.

my comments:

for mortgage protector advantage, the premium for a 40 year old male, non-smoker with sum assured of $1 million for a term of 20 years at an interest rate of 5% works out to have an annual premium of $5,846.67 which is payable for 15 years totalling $87,700.05.

in contrast, the mortgage protector (without premium refund) is priced with an annual premium of just $1,760.00, also payable for 15 years totalling $26,400.00.

whatever your views on this latest mrta plan by oac, one cannot deny that it adds yet another option available in the highly competitve mortgage insurance market.

Monday, December 3, 2012

china bank's 'troubled wealth product'

 
in an article with the same title, it was reported that investors who had bought products issued by zhongding wealth management centre rushed to huaxia's shanghai branch yesterday, after weekend reports online that the products had stopped making payments which reuters could not confirm on the payment status of the products.

the bank said it was "aware" of reports that the investments could not be repaid when the products matured but huaxin did not confirm those reports.

in the last few years, sales in china of so-called wealth management products (some with terms as short as a few weeks) have soared (which grew to 12.14 trillion yuan in the first half of 2012) as banks compete for deposits with products offering higher interest rates than those offered on savings accounts. huaxia bank was one of the 5 most active issuers cited in the july report by consultancy cn benefit.

my comments:

the question to ask is; are there really investments in the financial jungle which promises quick and higher returns? but of course, there are if u base the answer to the question on the many ads in our dailies, the internet and even the social media, promising quick and big returns.

my take is there will always be products that are dangled offering quick and higher returns as compared to say, plain vanilla bank deposits.

but the more significant point is, does the higher returns come with lower risks and more importantly, are the higher returns fully guaranteed?

and that is the $64 million dollar question.

but do always keep in mind the cardinal principle that the higher the risks, the higher the potential returns but these are usually always never guaranteed.

which leads us to the other principle which is 'caveat emptor' and heeding this warning may perhaps be the hindsight which everyone will surely appreciate rather than be sorry afterwards.










Monday, November 26, 2012

testing

myanmar nationals


we have just received this email notification from tokio marine life insurance singapore:


Dear Business Partners,

We are pleased to inform that we accept Myanmar nationals who are Singapore PR or holding a valid Employment Pass (EP).

Myanmar nationals, who are Singapore PR or EP holder, please use the Singaporeans Underwriting Guidelines, subject to the respective benefit limit.

However, please note that for EP holders, maximum Death/ Total Permanent Disability (TPD) / Dread Disease (DD) benefit will be capped at S$500,000.

We have attached the proposal handbook for your easy reference.

Appreciate your kind assistance to disseminate the information to all your advisers.

Thank you.

**

*Joyce Soh*
Administrative Executive, Distribution Operation Department
T 6592 6229 | F  6223 9120
*Tokio Marine Life Insurance Singapore Ltd.
*20 McCallum Street #07-01 Tokio Marine Centre Singapore 069046 | _www.tokiomarine-life.sg <http://www.tokiomarine-life.sg/>

my comments:

it's good news because tokio marine life insurance singapore has opened their gates to accept life insurance applications from myanmar nationals who are singapore prs or holding a valid employment pass.

i suppose with the country's reforms and sanctions being gradually lifted, tokio marine life insurance singapore is one of the first insurers to accept business from myanmar nationals. and i reckon more insurers may do the same.

Thursday, November 22, 2012

happy thanksgiving day

 
a happy thanksgiving day to all americans, canadians and to my family and relatives and also to all the people that i have got to know and love.

*from wikipedia:

Thanksgiving Day is is a national holiday celebrated primarily in the United States and Canada, with several other places around the world observing similar celebrations. Thanksgiving is celebrated on the fourth Thursday of November in the United States and on the second Monday of October in Canada. Today, thanksgiving is a festival of family reunion. Family members gather for a reunion to give thanks for the good things that they have. Thanksgiving has its historical roots in religious traditions, but today is celebrated in a more secular manner.

my comments:  

wouldn't it be nice if our government legislates to make thanksgiving day a national holiday in our tiny red dot nation.

sorry to digress from my usual blog on insurance but on this day, it is opportune for me to give thanks to my Lord and Saviour, Jesus Christ for his grace, love and mercies. and thanks also to my family and relatives, colleagues, friends and everyone that i have been blessed to have met.

and last but not least, for installing me in a position to significantly impact lives from my role as an independent financial adviser.




Tuesday, November 20, 2012

prudential - launch of early stage cw and cw III


prudential has just launched their early stage crisis waiver and crisis waiver III.

what are the benefits of early stage crisis waiver?

Benefits of Early Stage Crisis Waiver
  • Upon the diagnosis of an Early Stage Medical Condition, future premiums will be waived for 5 years.
  • You may claim the benefits for Early Stage Medical Conditions twice during the term of the policy. The second claim will waive the premium for another 5 years. This is provided the second claim is not for the same Medical Condition as the first claim, and it does not fall within the same category of the first Early Stage Medical Condition.
  • You can claim for 10 years waiver of premiums upon the diagnosis of Intermediate Stage Medical Conditions. However, if there was a successful claim under Early Stage Medical Conditions, the Intermediate Stage Medical Conditions Benefit only waives 5 years of future premiums.
what is the benefit of crisis waiver III?

Benefit of Crisis Waiver III
  • Your remaining premium payments for the covered benefits are waived upon diagnosis of any one of the specified 30 critical illness.
my comments:

as quite a number of insurers have already launched what i term as 2nd generation critical illness products, prudential is probably the first to launch their early stage crisis waiver.

i reckon the competition will also launch similar early stage crisis waiver under a different name pretty soon.

for insurers still without a 2nd generation critical illness product, my guess is the day is not too far off when we will see this product launch, probably at the start of 2013.

Monday, November 19, 2012

rnf

 
at our monthly business meeting today (compulsory for all advisers), mr albert phua, our compliance officer reminded us of compliance to the representative notification framework which came into effect from november 26, 2010.

apparently, this was in response to the monetary authority of singapore's circular dated november 16, 2012 which noted many instances of tardy or non-compliance to 2 key provisions namely:

1)    Cessation to act as a representative or to carry on regulated activity. (Time frame - Immediately) and

2)    Change in the status/particulars of representative. (Time frame - within 7 days of its occurrence).


my comments:

if there's one principle which every financial adviser or financial entity must always bear in mind, don't play play (with apologies to mr phua chu kang) with the authorities and the other is every company exist because of their customers.

the change in the status and particulars of any financial adviser must be reported within 7 days of its occurrence, failing which the financial adviser and financial entity will be subject to disciplinary proceedings.

and that's why every single person in the financial industry must continually be 'on the ball' in order to be able to carry on business as usual and on this, there can never be any compromise.

Thursday, November 15, 2012

mas looks to tighten ad rules for investment schemes

 
speaking in parliament, mr tharman who is the MAS chairman and finance minister said that the central bank is working with the ministry of communications and information and other agencies to "minimise the scope to mislead consumers through advertisements".

mr tharman added; "MAS will continue its efforts in educating singaporeans on the pitfalls of dealing with unregulated entities and the risks of unregulated schemes."

my comments:


Wednesday, November 14, 2012

testing

world diabetes day




today is world diabetes day.

why is this relevant to singapore?

in our tiny red dot nation, there is a worrying trend that diabetes is afflicting more people. in the 70s, it was just 2%, in the 80s, it was double at 4% and latest statistics show 11.3% of the population has diabetes. more significantly, 14% of our population are already pre-diabetic. indians and malays are at higher risk of contracting diabetes while the chinese has an almost 10% of the same risk*. the idf (international diabetes federation) estimates that, globally, 187 million people do not yet know they are suffering from the condition.

*source: radio 93.8 body and soul program hosted by daniel martin

my comments:

to lower the risk, lifestyle changes is a key factor in delaying the onset of diabetes, especially among those who are already obese.

in terms of insurance planning, 1st generation critical illness products do not have coverage for diabetes but more recent critical illness products which i term as 2nd generation ci products* come with this coverage. having said this, it must be stressed that the coverage is specifically defined and capped with a low sum assured.

*for example, prudential pruearly stage crisis cover is the first insurance policy of its kind in Singapore to make payouts for selected diabetic complications. A payout of 20% of the sum assured will be made upon diagnosis of one of the covered Diabetic complications, up to a limit of S$30,000. Diabetic complications covered include Diabetic Retinopathy, Diabetic Nephropathy or amputation of part of limb due to gangrene.

in the final analysis, the best defence against diabetes (as in most diseases) is managing one's lifestyle.






Tuesday, November 13, 2012

happy deepavali!



wishing all my hindu friends and all hindus a very happy deepavali and may good always triumph over evil.

Monday, November 12, 2012

tale of a client

 
today, a client gave me a 'dressing down' for not keeping him/her informed of the launch of new insurance products. this is because the client is on an old shield plan with dollar capped benefits as opposed to new integrated shield products that offer 'as-charged' benefits and he/she would have upgraded to the enhanced shield plan if informed accordingly.

my instant reaction was to apologise and explained that it is highly improbable to keep every single one of my clientele continually informed of new insurance products.

my comments:

even with my apology, this person was not happy with me. to pacify him/her, i said i can try my best to do so for future launches of new products if an email can be sent to me requesting for the same.

the reason is because most people i know will treat the email blast of new insurance products as spam and may even lodge a complaint with the authorities.

sigh, nowadays, it is getting more and more difficult to manage clients' expectations.

testing

Thursday, November 8, 2012

liberty insurance - launch of senior care


today, liberty insurance launched a new pa plan for senior folks, senior care.

what is senior care?

senior care is a personal accident plan specially tailored for senior folks with entry age commencing from 50 years. there are 3 plans available, namely essential, economy and executive being the top tier plan.

my comments:

there are really very few personal accident plans in the market catering to senior folks and liberty insurance's senior care extends entry age to 75 years which is renewable up to age 85 years. it is open to both singapore citizens and permanent residents who are permanently residing in singapore.

insurers prepare for 'supercentenarians'


yes, british insurers are taking cognizance of the fact that life expectancy is not static and will continue to add years, going forward by modelling pension products on the basis that people could live to the age of 120 or even 125 years.

britain's oldest man, mr reg dean recently celebrated his 110th birthday on sunday. but it may not take long for mr dean to be overtaken by a new breed of what is termed as 'supercentenarians'.

quoting the office for national statistics, data showed that the number of uk people aged 100 or more has increased 5 fold from 2,500 in 1980 to 12,640 in 2010 and projections suggest that the number of centenarians will exceed 160,000 by mid-2040.

at a conference, mr otto thorensen, director general of the association of british insurers said:
"With men and women living on average 30 years longer than they did 100 years ago, by 2100, people living to over 100 years old will be the norm."

my comments:

with increasing life expectancy, just ponder the challenges facing insurers worldwide (including singapore) on pricing products.

recently, with her passing, our very own supercentenarian, ms teresa hsu lived to a ripe old age of 113 years.

yet, some of our insurers have launched whole life products that come with a maturity of the insured attaining age 99 years or age 100 years.

and with increased longevity, raises another issue in terms of retirement planning. by and large, many people have still not planned for their golden years. even for those that have done theirs, i urge them to do a regular review because many of the retirement plans i have seen are not realistic based on 20 to 30 years of living in retirement. in other words, up to age 80 years max.

other than this, it is also a fact that generally, our population can be considered to be under-insured.

well, i reckon lots more need to be done to educate the masses of the importance of planning.




Tuesday, November 6, 2012

life insurance industry performance up to 3rd Qtr 2012


in a media statement released today, the lia (life insurance association of singapore) reported that the life insurance industry achieved a total of $1,608.1 million in weighted* new business premiums for the first nine months of 2012 which saw a 10% improvement over the corresponding period in 2011. but single premium business recorded a drop of 10% at
$447.3 million with 14% comprising CPF-funded sales.

*   The weighted new business premium figure is calculated as follows:
    10% SPI + 100% API with adjustment for premium payment terms of less
    than 10 years.

the tied channel continue to dominate with 44% of the new business with the bancassurance taking another 37% and 15% of the pie going to financial advisers and the balance of 6% to the other channels. 

my comments:

as usual, the bulk of new sales came from par products which accounted for 52% of new business with non-par taking 29% and investment-linked products making up the balance with 19%.

as if to emphasise the status quo of the population being under-insured, the bulk of claims or more than 93% of $4.20 billion were paid for policies that matured while only $313 million was paid in respect of death, critical illness or disability claims.

for the kyc form, the 4 options of:

1.  full advice
2.  partial advice
3.  product advice and
4.  no advice 

has been replaced with the following (since Aug 01, 2012):
  1. Comprehensive Planning
  2. Specific Need(s) Planning
  3. No Needs Analysis Purchase
     
     
     
     
     
     
     
      



Tuesday, October 30, 2012

another life insurer?

today, david choo (managing director of promiseland independent pte ltd) and myself sat down with a management staff of the largest life insurer (in the country of origin) and discussed the probability of being one of their partners in distributing their products.

the person who met us disclosed that they have received in-principle approval for a life licence (pending meeting other requirements) to doing business in our tiny red dot nation. he also shared that our regulator (meaning the monetary authority of singapore) has been pretty strict but very transparent.

my comments:

when i joined the industry 15 years ago, an agency leader from a large insurance company warned me that the insurance business (at that time) is already saturated.

if this is true, why are there foreign insurers who continue to eye singapore and seek to do business here?

i reckon more insurers here will translate into ever more choices for consumers and it is definitely more positive than anything else.

Monday, October 29, 2012

standard life - launch of maiden products


today, i attended standard life's launch of their maiden products into the singapore market held at the raffles hotel.

standard life's offerings are all investment-linked products with a lump sum or single premium plan and 2 regular savings plans.

my comments: 

these products are not meant for the 'mass-market' as standard life's licence is restricted to the defined market segment*.

*Explanatory note: DMS insurers are registered with the MAS to conduct only non-CPF business and with minimum policy sizes.

for example, the investment plan which is a single premium ilp has a minimum requirement of US$50,000 or S$80,000. as for the other 2 ilp products which is the regular savings plan classic and regular savings plan wealth, there is a specified minimum contribution of US$420 or S$670 for monthly contribution, assuming a term of 10 or more years.

with these latest ilp products means even more choices for our consumers and there are now 18 insurers operating in our tiny red dot nation.

 




Saturday, October 13, 2012

medishield enhancements




the ministry of health has announced enhancements to the medishield scheme effective from March 01, 2013 and these include:

a.   annual and lifetime limits will be increased from $50,000 and $200,000 to $70,000 and $300,000 respecticely;
b.   maximum age of coverage will go up to age 90 from age 85 currently;
c.   the maximum entry age of 75 will be removed;
d.   coverage will also be extended to inpatient psychiatric treatment at $100 per day but capped up to 35 days per year; and cover short-stay wards in Emergency Departments;

on the flip side, class B2/C deductibles will go up by $500 for those aged 80 and below and premiums will be raised between $17 and $251 yearly. To help with the higher premiums charged, our government will be giving a one-off top-up to medisave of between $50 and $400 for those on medishield. At the same time, the medisave withdrawals limits will be raised to $1,000 (for those aged 76 to 80) and $1,200 for for those over 80 years of age.

my comments:

the enhancements are long overdue and is welcome news to all who are on the medishield scheme estimated to cover up to 92% of the population.
however, medishield will not extend coverage to babies born with congenital diseases or those that need neonatal care.
another request to allow medisave to pay for either the deductible or co-insurance rider was rejected which may lead to both overconsumption and overservicing of health care.
i would have been delighted if the enhancements include lifetime coverage because of increasing life expectancy and higher limits on in-patient benefits. but i guess the ministry of health is taking what i term as 'baby steps' in balancing the enhancements with the expected repricing of premiums which is still pretty hefty for those who are already elderly and living in the twilight of their years.

Tuesday, October 9, 2012

prudential - launch of pruflexicash protection plus

 
prudential has added an anticipated endowment plan to their stable with the launch of pruflexicash protection plus.

benefits:


  • Lump sum payment of up to 4 times the sum assured of PRUflexicash protection plus in the event of Death Accelerated Terminal Illness or Accelerated Disability1
  • Flexible policy terms of 15 or 25 years
  • 3 smart ways to enjoy your Yearly Cashback3:
    • Receive a Yearly Cashback after the second policy anniversary and use as you wish, such as a family holiday.
    • Enjoy bigger payouts on your policy if you choose to defer receiving your Yearly Cashback after the 10th policy anniversary or later4.
    • Accumulate your Yearly Cashback and get a non-guaranteed interest5 of 3% p.a. by leaving it with us.
  • Future Insurance Option6 (FIO) to buy new plan7 within 4 years from first premium due date even if health changes. You are assured of enjoying increased coverage of up to 4 times the sum assured of your PRUflexicash protection plus or S$200,0007, whichever lower.
  • Whichever policy term you choose, upon maturity you will receive in total 120% of the sum assured of PRUflexicash protection plus, plus all the bonuses (non-guaranteed) that were added to the plan every year.
  • Choice of cashing in bonuses (non-guaranteed) accumulated
  • Option to borrow up to 90% of policy's cash value**
  • Interest-free loans to cover medical expenses resulting from a surgical operation+
  • Add on these supplementary benefits for more comprehensive coverage
    • Crisis Cover III provides you with a lump sum payment in the event that you are diagnosed with any one of 30 critical illnesses
    • Crisis Waiver III pays for your premiums in the event that you are diagnosed with any one of the 30 critical illnesses
    • Comprehensive Personal Accident III provides an additional lump sum payment in the event of accidental death and dismemberment
      • reimburse your medical expenses incurred due to the accident and pays out a weekly income if you are unable to work because of the accident.
^ Terms and conditions apply
** There is an annual interest rate on the loan amount, which is non-guaranteed and subject to change.
+ This loan is available at the discretion of the insurance product provider and may be granted upon satisfying required conditions.
1 Policy provides coverage against Accelerated Terminal Illness and Accelerated Disability during the term of the policy, and before the anniversary of the policy on which the Life Assured will attain the age of 65. We will pay for either Accelerated Terminal Illness or Accelerated Disability but not both.
2 Bonuses are not guaranteed and will vary according to the future experience of the participating fund.
3 Yearly Cashback is a payout of 5% of PRUflexicash protection plus sum assured after the 2nd Policy Anniversary.
4 No later than one year before the end of policy term.
5 An annual interest rate will be applied on the accumulated Cashback. The interest accures on daily basis. This interest rate may vary.
6 This benefit is only applicable to PRUflexicash protection plus purchased under standard terms. The maximum age to exercise the FIO is 44 years old.
7 Excluding PRUflexicash protection plus or any other policy with a FIO.         

Tuesday, July 3, 2012

fee-based model may leave more underinsured

in a recent interview with the straits times, mr tony wilkey, the chief executive of insurance at Prudential Corporation Asia commented that moving the renumeration model to a fee-based one could leave even more people underinsured.

"It is a different value proposition for the consumer to write a personal cheque in advance to get the advice before a product is delivered.

The affluent customer is more likely to pay, but historically in other countries, the mass market consumer has not been seen as willing to write cheques.

This concerns me because if they are unwilling to pay for advice, then the likelihood of them purchasing what the family needs could be impacted. Theoretically, we could end up increasing the underinsurance gap."

two other CEOs, mr chris wei of great eastern life and ms annette king of manulife also raised similar concerns.

my comments:

mr wilkey was giving his comments on the likely sweeping reforms by FAIR set up by the Monetary Authority of Singapore in march and will make it's recommendations by the fourth quarter of the year.

my take is there is no one perfect renumeration model or one size fits all approach to the renumeration structure, just as every individual is unique.
the answer may life in adopting several structures and as mr wilkey has opined that we may end up increasing the underinsurance gap if a pure fee-based one is implemented.


Wednesday, May 30, 2012

tokio marine life insurance - launch of tm retirement life

today, i attended tokio marine life insurance's soft launch of tm retirement life at ntuc auditorium at one marina to roll out their latest product, tm retirement life. the official launch date is may 31, 2012. what is tm retirement life? this is a hybrid limited premium participating whole life plan with yearly cash benefits from either age 60 or age 65 (referred to as the 'payout' age) for as long as the life assured lives. my comments: the plan provides coverage for death and terminal illness and is available for both single life and joint-life application (husband and wife). starting from the selected payout age (either age 60 or age 65), a guaranteed cash benefit equivalent to 5% of the sum assured will be payable yearly for as long as the life assured is alive. payment of the cash benefists does not reduce the death benefit and sum assured. once again, as in most of tokio marine life insurance's participating products, the reversionary bonus rate is projected at $10 per $1,000 sum assured compounding at 1% per annum. this is neither aggresive nor overly optimistic as indeed, the worsening eurozone debt crisis has seen a flight of captial to safety like us and german government soverign papers. this product may be suitable for consumers looking for a perpetual 'bank account' (note, not perpetual securities) and can be considered to be an annuity also. tm retirement life is also open to joint-life application which of course is restricted to a legal husband and wife relationship. what's interesting is the plan will continue to pay the guaranteed cash benefit which is equivalent to 5% of the sum assured for so long as any of the life assured is alive from the selected payout age. today, there are not many insurers offering an annuity product in their stable and it is perhaps not difficult to understand why this is so, against the factor of ever increasing life expectancy here because our tiny red dot nation have one of the longest life expectancy on planet earth. and it is simply very demanding of the insurer to come out with such a product due to the very stringent requirements of reserves versus liabilities on a very long term horizon. and last but not least, promiselanders now have an additional option (a lifetime stream of guaranteed income) to offer consumers.

Tuesday, May 29, 2012

changes in cpf minimum sum, medisave minimum sum and medisave contribution ceiling from july 01, 2012

the cpf board has announced that cpf members turning age 55 between between 1 July 2012 and 30 June 2013 will need to set aside a Minimum Sum (MS) of $139,000 soon. the previous minimum sum for 2011 was $131,000. as for the medisave minimum sum which is the amount that a person turning 55 needs to set aside for his hospitalisation expenses in subsidised Class B2 and C wards, subsidised outpatient treatment for selected chronic conditions and basic MediShield and ElderShield premiums in his old age, will be raised from $36,000 to $38,500. cpf members will be able to withdraw their medisave savings in excess of the medisave minimum sum at or after age 55. the maximum a cpf member may have in his medisave account known as the medisave contribution ceiling is set at $5,000 above the medisave minimum sum and therefore, the latter will be increased to $43,500 from $41,000 previously. any excess of the prevailing medisave contribution ceiling will be transferred to the cpf member's special account if he/she is below age 55 or to his/her retirement account if above age 55 and has a medisave shortfall. my comments: is it any surprise that the adjustments to the cpf minimum sum, the medisave minimum sum and medisave contribution ceiling has been adjusted to account for inflation, longer life expectancies and rising expectations of quality of life post retirement. even though the minimum sum is $131,000 currently and yet, a vast majority of cpf members still fall short of the cpf minimum sum, even after pledging their property which is permitted up to 50% of the minimum sum with the latest figures showing that only 45% of cpf members have met the minimum sum requirement.

Tuesday, May 15, 2012

half of americans think facebook is a passing fad: poll before ipo

according to the results of a new associated press-cnbc poll, 50% of americans think facebook is a passing fad and half of those polled also say the social network's expected asking price is too high. facebook has increased the price range of it's ipo to between US$34 and US$38 per share from an initial US$28 to US$35 per share in response to very strong demand and is expected to raise more than 10 times as much as the US$1.67 billion raised in google inc's 2004 ipo. my comments: whether u believe facebook's share is fairly valued or over-valued, only time will tell but every investment carries risks. but it is surely the other way around for insurance where the risks are transferred to the insurer/re-insurer through the payment of a premium. and therefore the question arises, are u under-insured or worst, uninsured?

Saturday, May 12, 2012

'Sorry, we should have accepted application: Income'

perhaps not surprisingly, the head honcho of ntuc-income, mr tan suee chieh has responded to ms lim siew kim's letter (published yesterday) in today's st forum with the headline; "sorry, we should have accepted application." in admitting that it was a mistake, mr tan expressed his apologies and regretted that it happened (the rejection of the application of ms lim siew kim for a hospitisation policy for her baby daughter) and added that based their investigation, ntuc-income would have accepted their application as it has always been for such children. furthermore, mr tan disclosed there has not been any change in the co-operative's underwriting policy which is to protect the interests of existing policyholders and not to maximise profit. mr tan reiterated the philosophy that ntuc-income puts people before profit and one example quoted is ntuc-income's support for the NKF Kidney Live Donor Support Programme, where the co-operative insurer and the National Kidney Foundation have teamed up to provide life and critical illness insurance to kidney donors who pass a means test. and since 2009, ntuc-income is the only insurer in Singapore to provide a group living policy to ensure that kidney donors have insurance coverage in case they fall sick due to the organ donation. mr tan ended his letter by telling everyone that ntuc-income is not a perfect organisation and mistakes do happen but on a positive note, emphasised that they will learn from it. my comments: it is indeed heartwarming to know that mr tan himself has issued an apology for the company's 'mistake' and like any other organisation, no one should deny that mistakes can and will happen and the organisation can learn from it and be better from the experience. i have many positive experiences with ntuc-income, not only as a financial adviser rep but also as a customer and i have no reason not to be happy with my relationship with the only co-operative insurer in Singapore.

Friday, May 11, 2012

'Born with one kidney: Income rejected, Great Eastern accepted'

there's a letter published in the st forum today from one ms lim siew kim who highlighted the fact that her daughter's application for a hospitalisation plan was accepted by great eastern life but rejected by ntuc-income. ms lim's baby daughter was born with one kidney but was deemed to be healthy in every other aspect by their paediatrician. in rejecting the application, ntuc-income stated that their daughter's absent kidney and the remaining other kidney being larger than normal, poses a risk. ms lim was impressed with the professional assistance in applying for a policy with great eastern life and approved their daugther's application in less than two weeks. my comments: first, kudos to great eastern life but i can't assume to speak for ntuc-income in this case but it is certainly an abnormaly to be rejected here but accepted by another insurer. perhaps ntuc-income should not have rejected this case but instead, channelled it to higher management for further consideration. like anyone else, i await ntuc-income's response to ms lim's letter and i believe the head honcho of ntuc-income, mr tan suee chieh will weigh in with his response.

Monday, May 7, 2012

testing

tiered insurance fees 'reasonable': survey

in the latest survey commissioned by the life insurance association of singapore, the key findings revealed: a. 72% are satisfied with the insurance industry as a whole b. 74% believe their financial adviser acts in the best interest of the customer c. 80% still needed advice on the different insurance products before making a decision d. 77% are aware the adviser's recommendation comes from the policy's premiums e. 59% know that the adviser's commission is higher in the 1st year and lower in subsequent years and that renumeration changes depending on the product f. 58% said that the renumeration policy has no impact on which product they buy and g. 9% said that the current payment structure is unfair and that more transparency is needed. this survey was conducted in december 2011, way before the monetary authority of singapore announced the FAIR (financial advisory industry review) which will undertake a comprehensive look at the life insurance industry. my comments: the lia survey has chalked up very positive feedback on the life insurance industry and financial advisers with a total of 800 people being polled. even though these findings are positive, i support the announcement by the monetary authority of singapore, the composition of the review panel for the FAIR, headed by MAS’ Assistant Managing Director for Capital Markets, Mr Lee Chuan Teck. it is also my hope that everyone will benefit from the proposed recommendations of the 5 key thrusts of FAIR: (i) raise the competence of financial advisory (FA) representatives; (ii) raise the quality of FA firms; (iii) make FA a dedicated service; (iv) lower distribution costs; and (v) promote a culture of fair dealing.

Wednesday, May 2, 2012

actress emma yong dies of cancer, aged 36

it has been reported that ms emma yong, aged 36, has passed on after a prolonged bout with late stage stomach cancer which was diagnosed in january last year. the cancer went into remission through aggressive chemotherapy but she suffered a relapse towards the end of last year. my comments: our hearts, thoughts and prayers go out to her family and loved ones. i can relate to the loss of a dear one to cancer as my younger brother also lost his battle with late stage cancer of the kidney some years ago. and this year, all the wakes my wife and myself have attended have been deaths caused by cancer and not necessarily confined to late stage cancer. many of these deaths are certainly not in the script as these people are still in the prime of their lives not unlike ms emma yong at 36 years is another talented individual gone too soon. and cancer will continue to account for many deaths (sadly) because it is still one of the leading cause of deaths in our tiny red dot nation. but there will also be many cancer survivors (thank God) and for this group of people whom i have met over the course of my role as a financial advisor, the good news is that many will continue to lead normal lives but on the flip side, taking up insurance may remain a wish on their 'things-to-do' list.

Tuesday, May 1, 2012

may day 2012

today is labour day and i add my salute to our labour force, not only in our tiny red dot nation but all over the world. have a well deserved holiday!

Wednesday, April 18, 2012

launch of zurich life insurance singapore


today, david choo, the md of promiseland independent pte ltd and myself attended the grand launch of zurich life insurance singapore at the marina mandarin hotel.

we have heard that zurich international life has applied for a full licence many months ago and today, the subsidiary of zurich insurance group, which is zurich life insurance singapore has been granted a full licence by the monetary authority of singapore to sell products to a wider market where previously, the company could only target a defined market with a restricted licence.

zurich international life has been operating locally since 2006 and has been limited to the mass affluent and affluent market which represents some 5% of the total market.

mr graham morrall, chief executive of zurich life insurance singapore said that with the full licence, the company is reaffirming its full commitment to the singapore market and will enable it to tap a bigger segment of the market although the company does not intend to compete in the mass market.

my comments:

zurich life insurance already has tie-ups with both anz and citibank to tap the bancassurance channel and will explore more bank partners to distribute their products.

it also has an existing agency force of approximately 50 tied agents and aims to double this number by the end of 2012.

across the causeway, zurich financial services has already acquired compostie insurer, malaysian assurance alliance.

we are excited to be a partner of zurich life insurance singapore and what this means is that consumers here will benefit from having another insurer to add to the wide range of insurance products already available from existing players in our tiny red dot nation.

Thursday, April 12, 2012

government revises healthcare subsidies for PRs








the ministry of health has announced that the healthcare subsidies for prs will be revised downwards for in-patient services (class B2 and class C wards), day surgery and specialist outpatient clinics in government restructured hospitals as well as intermediate and long term care services.

for the intermediate and long term care sector, the adjustments will be implemented in the third quarter of 2012, while the changes in the government restrutured hospitals will see the implementation in 2 phases; in october 2012 and april 2013 to mitigate the effect of these adjustments on prs.

please refer to the coming changes as reflected in the tables as shown.

my comments:

for singapore citizens clamouring for more recognition of the differentiation from prs, this is one of our government's response to putting singaporeans first.

i suppose it is also inevitable given that medical or healthcare costs tend to rise the fastest and i believe insurers offering integrated shield products will have to go back to their drawing board to re-look at the current pricing vis-a-vis the coming implementation of lower subsidies for prs.

and i wouldn't be surprised that the current prices will not stay status-quo once the implementation kicks-in especially with the most cuts on subsidies affecting those who are in the higher or highest income brackets.

Friday, April 6, 2012

thank God, it's friday


quoting the Bible from the book of John, Chapter 3 verse 16:

For God so loved the world, that He gave His only begotten Son, that whosoever believeth in Him should not perish, but have everlasting life.

Sunday, April 1, 2012

aviva - pre-launch of my retirement


officially, aviva has scheduled the launch of their latest product, my retirement on april 04, 2012.

what is aviva my retirement?

this is a limited and regular premium participating endowment product with coverage for death and terminal illness and comes with the following features:

a. limited premium payment of 8 policy years or premium payment for up to 5
years prior to the selected retirement age which is age 50, 55, 60 or 65
years.
b. guaranteed issuance for basic plan and
c. guaranteed retirement income benefit.

the guaranteed retirement income benefit comes with the flexibility of the following options:

a. receive a monthly guaranteed retirement income benefit for 10 years
b. receive the usual full lump sum payment or
c. receive a partial lump sum payment and thereafter, receive a monthly
guaranteed retirement income benefit for 10 years.

what happens if the policyowner/life assured does not need the money when the guaranteed retirement income benefit is due?

there is an option to re-invest this with aviva at a non-guaranteed interest rate of 3.0% p.a. however, the policyowner/life assured can withdraw this partially or even fully anytime inclusive of the interest. there is a minimum withdrawl amount of $1,000.00 (in multiples of $10.00) or balance available, whichever is lower.

the minimum entry age for this product is 17 years and the maximum is 52 years.


my comments:


consumers can expect launch of new insurance products, not to be plain vanilla but more hybrid in design and features. Endowment products of the past were usually pretty basic, like on the maturity of the policy, the insurer will proceed to make a lump sum payment to the policyowner/life assured.

aviva my retirement must never be taken up for protection as the death benefit on death during the accumulation phase is 101% of total premiums paid + accrued reversionary bonus (if any) + terminal bonus (if any) and death benefit during the retirement income period is 101% of total premiums paid + accrued reversionary bonus (if any) + terminal bonus (if any) minus total retirement income paid out (if any) or cash surrender value (less any indebtedness).

furthermore, the plan does not provide for total and permanent disability benefit as well.

Wednesday, March 14, 2012

hsbc insurance - launch of early critical care


hsbc insurance has just launched what i term as a second generation critical illness product, early critical care which is one of the most comprehensive protection plans currently available.

benefits at a glance:

Covers 90 conditions
Enjoy comprehensive coverage against a wide range of illnesses.

Provides 100% payout even for early stage critical illness
Early Critical Care pays 100% of the sum assured in the early, intermediate and critical stages#

Covering illnesses not commonly insured in Singapore
Covering prevalent illnesses such as Dengue Haemorrhagic Fever, Diabetic Retinopathy, Osteoporosis and Severe Rheumatoid Arthritis

my comments:

it has to happen, sooner or later with another joining the bandwagon to roll out what i term as a second generation critical illness product.

because hsbc insurance is the latest entrant to the market, it offers the most comprehensive coverage of critical illness from early to intermediate to severe critical illness conditions with 90 on the list.

with the usual 30 critical illness, there are 27 intermediate conditions and another 28 falling under early stage. throw in another 4 additional critical illnesses and the total covered number 90 covered conditions which also includes angioplasty and other invasive treatment for coronary artery under coronary artery by-pass surgery.

Tuesday, March 13, 2012

ntuc-income: launch of capital plus (CPN29)


just received this email notification from ntuc-income:

Dear Valued Business Partners,

We are pleased to announce the launch of our limited-tranche non-participating 2-years single premium non-participating plan, Capital Plus (CPN29).

*_Brief outline of the plan:_*

Ø2-years single premium non-participating plan

ØGuaranteed interest of 1.40%p.a.

ØProvides TPD before age 65 years old (last birthday) and Death coverage

ØEntry age of 16 to 80 years old (last birthday)

ØMinimum single premium of $10,000 up to a maximum of S$1,000,000

ØSimplified underwriting

·Sum Assured = 105% of Single Premium

·Sum Assured = 100% of Single Premium (if claim occurs within the 1^st policy year)

Please refer to the Frequently Asked Questions for more details.

As this is a limited tranche product, applications to the plan is on a *_first-come-first-served basis_*. The product will be withdrawn upon attainment of tranche size. Any excess premium received above the tranche size will be refunded accordingly to customers. As per previous tranches, we expect possibility of short withdrawal notice. We seek your kind understanding in this.

We look forward to your continuing support.

Thank you very much.

Brought to you by

Financial Advisers, Sales Division
FA Hotline: (65) 9746 2663
www.income.com.sg

my comments:

yet another launch of capital plus which is a single premium non-participating endowment product from ntuc-income.

but this time, the launch comes with a twist because the last day for acceptance of subscriptions is this thursday, march 15, 2012 with no extensions entertained.

Tuesday, March 6, 2012

testing

smoking ban to cover more places


those who smoke will soon have fewer places to do so because the smoking ban will be extended to cover more areas like common corriders, void decks and staircases of residential buildings.

other non-smoking areas to be covered include sheltered walkways, overhead bridges and outdoor hospital compounds.

the new non-smoking zones will kick in the coming year.

for bus-stops, the change means for those who smoke must stay outside a 5m radius around bus shelters.

all these comes as a the result of a public consultation exercise which the national environment agency and health promotion board initiated last november which attracted 8,000 respondents with 89% giving their ayes to an extension of the smoking ban.

on the smoking ban to cover more places, senior minister of state of the ministry of the environment and water resources, ms grace fu said:

"our long term goal is to prohibit smoking in all public places except in designated smoking areas...
our aim, in collaboration with the heatlh promotion board, is to work towards a future where singaporeans consider smoking not only detrimental to health, but also socially unacceptable."


my comments:

the upcoming implementation will surely be welcomed by most folks because of the threat to our health due to the dangers of what is termed as passive smoking which is well supported by medical evidence.

and the most recent untimely death of renowed taiwanese singer, ms feng fei fei who passed on from lung cancer has once again put the spotlight on the link between lung cancer and non-smokers because ms feng led a healthy lifestyle and did not smoke.

in our tiny red dot nation, non-smokers constitute 30 per cent of the total lung cancer cases each year, according to Dr Daniel Tan, associate consultant at the Department of Medical Oncology at the National Cancer Centre Singapore (NCCS).

but it appears that the incidence of lung cancer in non-smokers is also higher in women than in men. Dr Daniel Tan said that seven out of 10 non-smokers who contract the cancer here are women. and lung cancer is the second most common cancer among women locally, after breast cancer.

however, even with the extended smoking ban, many of us (non-smokers) will still be exposed to the ambient smoke present when we visit the loo or take the elevator (especially in housing board flats) and that is a risk which is difficult to avoid altogether.

is there any way to hedge against the risk of contracting lung cancer?

the first option is to do nothing, or que sera sera.

the second is probably the tried and tested way which is to stay a non-smoker of course but there is really nothing much else we can do with regard to breathing in second hand smoke.

and the final solution is to consider transferring the risks of contracting cancer to a third party. on this, there are currently so many providers who offer not only the standard critical illness coverage but early critical illness and multiple critical illness claims as well.

do u have any other option/s?

Monday, March 5, 2012

cpf life plans refined from 4 to 2


an announcement was made by Deputy Prime Minister and Manpower Minister, Tharman Shanmugaratnam during the Committee of Supply debates on the Manpower Ministry's estimates in Parliament on Monday on another tweaking to the cpf life scheme introduced in 2009.

when the cpf life scheme was launched, there were 4 plans available, namely:

1. life plus
2. life balanced
3. life basic
4. life income

as a result of feedback, the government has decided to combine the desired features of the life plus and balanced plans into a new plan called the standard plan which will be the default plan if cpf members have not indicated their choice of which plan they want and will automatically be placed under this plan.

the desired features of the new standard plan are:

a. comparable payouts to the minimum sum scheme
b. the bequest feature and
c. the flexibility to use the retirement account

the other plan available from january 2013 is the existing life basic plan for members who prefer a higher bequest and a lower monthly income.

the cpf board will be removing the life income plan due to very low demand as only 3% of life participatns who have opted for this plan and will no longer be available from january 2013.

how will the change affect existing life participants and cpf members?

for existing life participants which number approximately 73,000 members can choose to stay on their existing life plans or if the new standard plan is their preference, they have until december 31, 2013 to make the switch.

for other cpf members who turn age 55 on january 2013, it means there are now less 'confusion' over the choices available due to the refinement of plans to 2 (from 4 currently).

one of the confusions arose when life participants chose the life income plan only to realise that there is no-bequest feature in this plan and changed their minds when this was explained to them.

another confusion was from feedback garnered since the launch of the cpf life scheme indicated that members found it difficult to choose between the 4 plans.

my comments:

this is a welcome announcement as what was hitherto 4 choices for the cpf life scheme has been narrowed to just 2 plans.

but we are still spoilt for choice because other than the cpf life scheme, cpf members can choose to purchase an annuity from a private insurer.

ntuc-income's participating annuity has been the other so-called default choice of cpf members turning 55 years of age.

why?

because this is the only insurer that offers an annuity that allows the annuitant to receive additional monthly payouts in the form of bonuses which once declared, is guaranteed and enables the annuitant to enjoy a higher monthly payout.

but of course, the flip-side is a lower monthly income from the start of the payouts as compared to the cpf life scheme.

because we are living longer, the ntuc-income participating annuity merits consideration as the higher income (in the form of bonuses declared) from living longer may be more desirable in mitigating the effect of inflation.

Sunday, March 4, 2012

excuse me, are u a senior citizen?


today being our weekly family day is the perfect excuse to pig-out and spend quality time with my family which consists of my significant other and our only son.

we opted to go to one of our favourite restaurants, momiji japanese buffet restaurant at city square mall which is just a stone's throw (a herculean one at that) from our residence.

today isn't the first time we are giving our business to momiji as all of us pretty like japanese food and because it is not a-la-carte, meaning buffet style which is definitely value for money especially if the term, to pig-out is taken in it's literal context.

at the entrance, the cashier inquired as to the number of pax. to which i replied 2 adults and 1 senior citizen (seniors enjoy a discounted rate over the regular rate for adults. senior citizen defined as being age 60 years or older).

as this is not our first time, and the cashier already familiar with our faces, i was taken aback when i was asked for proof of my senior citizen status because this has never happened previously when asked to pay at the entrance to the restaurant with the cashier taking my word with regard to paying a discounted rate for myself, being a senior citizen.

without any hesitation, i duly showed the cashier my id card and he immediately apologised to us because he mentioned that his boss insisted on proof of status (being a senior citizen), even though we are regular customers as the senior citizen privilege has been abused by other customers.

my comments:

is there anything to take away from this episode?

firstly, we are talking about integrity and the point is, without integrity, where will i hide my face especially in front of my own wifey and only son. what message and example is the head of their household transmitting to them?

and secondly, the cashier and staff of momiji would have known (if i am not a senior citizen) that i am a liar and a cheat who got by all the times we patronised momiji at the discounted rate for senior citizens.

therefore, this incident reminds me to be always mindful of being upright or if u like, carry and conduct myself with integrity in all areas of my life, especially as all of my clientele/prospects/referrals expect it of me, and not to mention the role as head of my household and insurance consultant/specialist/trainer in promiseland independent.

which brings to my mind, a chinese proverb which goes like this;

"fu shu liu pee, ren shu liu ming or roughly transalted; when a tiger dies, the animal leaves behind the skin but when a person dies, he/she leaves a name."

Saturday, March 3, 2012

insurer launches plan for low income


ntuc-income's head honcho, mr tan suee chieh can rightly say, we did it again but it's definitely not to the tune of britney spear's; oops, we did it again.

what's happening at ntuc-income?

our island's only co-operative insurer has launched their ntuc-income value pack last night at the sands expo and convention centre.

what is ntuc-income value pack?

this is a bundled enhanced incomeshield plan covering hospitalisation and surgery costs in a singapore restructured hospital for the lower B2 and C Class wards together with term coverage.

on the value pack, mr tan suee chieh said:

"if we want to build a truly inclusive and strong community, we must not forget those who are at risk of being left behind while the rest of society progresses. no family should be devastated by the high costs of health care or the financial burden that comes after losing a breadwinner, especially when such a situation can be prevented."

on this, i believe mr tan may be referring to this year's budget as delivered in parliament recently by mr tharman shanmugaratnam, our deputy prime minister and minister for finance and minister for manpower, when one of the broad objectives of the current budget was to build a fair and inclusive society.

my comments:

when other insurers revised the pricing of their term products lower during the course of 2011, i was in a focus group with ntuc-income's product development team and the initial reaction to the new term rates offered by ntuc-income's competitors, was we do not know how they can do it.

since then, more than a year has gone by and yes, ntuc-income can proudly announced, we did it again and their new i-term TAN4 (term assurance product) is now one of the most competitively priced term products currently available.

how did ntuc-income manage this?

first, it is the only co-operative insurer in our tiny red dot nation and it always brings to my mind, mr tan's proclaimation that his job is not to maximise profits for the company but to put people first in his role as the head honcho of ntuc-income.

and secondly, i believe margins must have really been squeezed to probably razor thin bottomlines.

all these translates to truly good news for those residing in 3-room housing board flats or smaller or residing in households with a monthly income of less than $3,500.00 and of course, for the general population without adequate insurance coverage.

permanent residents and foreigners have not been forgotten because they will also be eligible if they meet the criteria to take up the value pack.

and last but not least, we are proud to be a business partner of ntuc-income and we are united in the co-operative's mission to insure everyone here.

Friday, March 2, 2012

nasty find in sardine puff


32 year old sandra jana started her wednesday morning like most other working adults, stopping by a popular food outlet at the singapore post centre to purchase their signature sardine puffs before heading to work.

after her first bite, she discovered what looked like a dark brown insect embedded among the filling.

on this, sandra's sister maggie aged 25 said: "She saw something that looked like a shrimp in the curry puff," who spoke about the incident to Yahoo! Singapore.

maggie added; "But she looked closer inside and realised it was something that looked like a cockroach."

my comments:

wow, an extra ingridient at no extra charge. but seriously, this is not something to laugh over because if consumed, the question that comes to mind; what will be the effect to one's health?

even though the standard of hygiene in our tiny red dot nation is well enforced by the national environment agency and other authorities, can we afford to be complacent when consuming food and drinks outside our homes.

my senior pastor joseph prince (new creation church) once recounted during a sermon of a similar episode when in the midst of consuming a packet of nasi lemak and noticed a piece of ikan bilis (anchovy) that looked rather different. on closer examination (thank God for his protection), it turned out to be a rusty nail.

and who can forget the very distrubing and sad news when 2 persons succumbed to food poisoning resulting in their most untimely demise from consuming indian rojak in 2009.

what i'm trying to point out is that life is ever so chock-full of uncertainties and that's why i have a soul consuming passion and mission to convert skeptics to implement financial planning for themselves and their families. i have come a long way since my intro to the financial industry some 15 years ago and i'm even more committed to my role than my first day with promiseland independent, the company that i grew up with.

Tuesday, February 28, 2012

the customer is always right?


just last week, an existing client called me (late at night) to inquire whether a claim can be submittted for a very minor injury sustained to one of the limbs in the course of work.

my client took up 2 policies from me, an integrated shield plan and a term plan with critical illness coverage.

based on what my client told me, my response was that none of the existing in-force policies provide coverage for the very minor injury sustained, but i can put in the claim nonetheless.

on hearing this, my client turned abusive and treated me to both verbal abuse and harasssment.

in addition, my client issued a clear threat to report me for being, in the words of my client; a lousy adviser.

my comments:

whenver i sit with any prospect/existing client, my advise is usually pretty comprehensive (after the mandatory financial needs analysis or fact finding) but the reality or the truth is, the person sitting in front of me will eitther plead affordability or budgetary constraints in taking up my recommendations.

it is the same story with this client and i believe i have done my utmost for the latter who is basically no different from any other person who reacts similarly when told a claim cannot be admitted even though they have no benefit/coverage in their existing insurance policies.

but this is a risk i have to face in my role as a financial adviser because no one client is alike.

Monday, February 27, 2012

what is testing?


by now, i believe many of my newer blog readers must be wondering what is 'testing' in my daily blog entry? this is my way of reserving the daily slot for my blog in case i can fill in the entry a day or days later.

and recently, some of my more regular blog readers have emailed me to register their disappointment with so many of my blog entries with nothing more than just one word, 'testing'.

my comments:

please accept my sincere apologies for not being able to blog for what seems like eternity to me at least because of the mountains of work piled up in front of me since prior to the chinese new year holidays.

this year saw the kick-off of the implementation of the cka*. coupled to this is the monetary authority of singapore's requirement of the 2D, or due dilgence on companies and products.

*From Jan 2012, as part of the Monetary Authority of Singapore’s initiatives to provide trading safeguards to retail investors, brokers must assess if investors have the relevant knowledge and experience before they can invest using Specified Investment Products.

i have to conduct a class on new advisers joining us after july 31, 2011 to get them up to speed on complying to this new regulation which has been scheduled for early march 2012.

in addition, i have to take new advisers through our company's new adviser development program. on top of all these, last monday's compulsory monthly business meeting and this monday's life insurance meeting have taken a huge toll on my daily schedule.

next, i have to compile a comprehensive list of all insurance products in singapore which is an ongoing exercise executed half yearly.

and the work goes on and on and on...

not to worry, i have not lost my passion for the industry, and my role in promiseland independent and of course, blogging here.

to kick-off my blogging again, i have posted one dated february 15 which saw the launch of ntuc-income i-term TAN4.

so stay tuned.......

Wednesday, February 15, 2012

ntuc-income - launch of new i-Term TAN4


here's some exciting news for consumers. ntuc-income has launched the new i-term TAN4 which is the re-priced version of the previous i-Term TAN2.

what is i-Term TAN4?

this is a non-participating regular premium plain vanilla term plan with coverage for death/total & permanent disability and terminal illness.

some details on the product:

entry age is pretty encompasing from age 0 to age 70 (last birthday).
term of coverage from a minimum of 5 years and from 5 years to 35 years or till age 54, 59, 64 last birthday.
Renewability – Upon expiry of the policy term, the policy will be renewed automatically without further underwriting. The premium payable upon renewal will be based on the prevailing age of the life insured, the prevailing premium rates and the policy term chosen at the time of renewal.
The policy can be renewed up to age 84 (previously age 79) only.

my comments:


one obvious question to ask: how does the new i-Term TAN4 sit amongst the competition?
answer: there has been a hefty cut in the re-pricing of premiums and generally, i-Term TAN4 is one of the most competitively priced term products currently available.

For example, the current pricing is just $180.85 (i-Term TAN4) versus $446.25 from another insurer.

note: the pricing for i-Term TAN2 was $245.20 or 36% higher.

Profile: Female, ALB 25 Years, Non-Smoker for sum assured of $500,000.00 and term of 10 years. That’s a hefty difference of $265.40 or 147% higher!

with the current inflation rate coming in at close to 5%, isn't it good to know that term rates have come down significantly and kudos to ntuc-income to continue to deliver on it's role as a co-operative insurer.

in fact, ntuc-income has embarked on a massive advertising compaign to inform consumers that everyone can afford to take up basic and essential insurance in the form of an integrated shield plan and term assurance.

the ntuc-income ads rightly dispels the myth that insurance is unaffordable because it only cost a mere 75 cents daily for a male, age 30 years, non-smoker to take up an i-term TAN4 plan with a sum assured of $250,000 (term of 5 years) and an enhanced incomeshield basic plan.

bearing in mind that the majority of the indigenious working population are cpf members, the total cash outlay for the same profile to take up the i-term TAN4 plan will amount to less than 43 cents a day because medisave can be used to pay for the premiums of the integrated shield plan.

because daily essentials like bread, milk and rice cost more than basic and essential insurance, no one should rely on the argument that taking up insurance is expensive (whatever that means).

Saturday, February 11, 2012

gone too soon (2)


one of my long time favs, ms fong gei-fei (birth name, lin chiu-luan) was reported by the news media to have passed on at the relatively young age of 58 years, succumbing to late stage lung cancer.

coincidentally, ms fong lost her hong kong businessman husband (whom she married in 1980), mr chiu wan kee to lung cancer in 2009 after her youngest brother died of lymphoma in 2006. ms fong's second brother also died of cancer in 2007.

what is also newsworthy was the fact that ms fong had been extremely health-conscious because she avoided cold food, fried food, pepper and chilli. in addition, she exercised and practised yoga.

my comments:

ms fong brings back many fond memories with hits such as applause and i am a cloud, amongst other best selling songs and i'm saddened by her most untimely demise.

what is striking is that she made a promise to her late husband to comply with his wishes to lead a healthy and happy life, which probably explains her strict regime of avoiding certain foods and a lifestyle filled with exercise and yoga.

what is also significant is the very unfortunate fact that too many lives in the family have been lost to the big C.

the statistics for cancer remain daunting and everyday in our tiny red dot nation, at least 26 people will have been diagnosed with the big C. and among the principal causes of death, cancer continues to occupy the number one ranking with an average of 29.0% of total deaths for the years 2008, 2009 and 2010.

and because treatment for cancer can cost more than an arm and a leg, our insurers have come out with a range of innovative insurance solutions to address this, including the recent initiatives of launching second generation products with coverage for early and intermediate stage critical illness as well.

knowing the facts is one thing and recognising the risk of contracting the big C is another.

and last but not least, what u do (or do not) do now is the question which only u can address.

Friday, February 10, 2012

gone too soon


today, i have just come to learn of the most untimely passing of an ex-colleague who is in the prime of his/her life.

this person is in the late 30s, and has 2 young children and was diagnosed with early stage cancer approximately 5 years ago.

when i met this person 2 years ago, i was happy to know that the cancer was in remission.

therefore, this person's passing came as a rude shock to me which was totally unexpected as the road ahead seemed to be clear.

my comments:

having lost my younger brother to cancer, i can certainly emphatise with this person's family.

this person was under the care of one of singapore's (and perhaps the region as well) most well known oncologist. when the cost of the treatment started piling-up, the family could no longer continue with the same oncologist and had to be referred to the national cancer centre.

at this time, other than the grief, trauma and emotional up-swelling as well as trying to cope or come to terms with the loss of a loved one, there is the other perspective of the financial mountain that has to be faced. this is really significant as the family's (current and potential) income has suddenly taken a nose dive.

i do not know of the family's wealth protection portfolio but my sincere hope is that they already have a comprehensive financial plan in place should the unexpected turn into reality.

Saturday, February 4, 2012

foreign maid insurance (2)


yesterday, i blogged on the abovementioned topic with a twist to the cancellation of the foreign maid insurance policy in terms of the refund being subjected to a penalty of 30% of the premium being imposed by ntuc-income on my client.

and this is the appeal which i lodged with ntuc-income on behalf of my client:

sorry to have to trouble u with regard to my case which is an appeal for the full refund of premium for foreign maid insurance policy number 5xxxxxxxxx.

what happened was my client's maid, ms xxx's test for pregnancy (while back home in indonesia) was positive and therefore, her in-principle approval by the ministry of manpower to work in singapore was cancelled.

because the policy, although incepted and issued is of no use to my client and the latter has just received a nasty surprise because the cheque for the refund (just received) amounted to only 70% of the premium paid for the policy.

but what is more significant is that my client has chosen to go with my recommendation and placed their trust in me because i mentioned that ntuc-income, being the only co-operative insurer is different because your ceo, mr tan suee chieh has said more than once that his job is not to maximise profits but putting people (first) before profits.

therefore, with a furious client confronting me and my tail between my legs, i'm formally appealing for my client's premium to be refunded in full.

ps: fyi, the maid agency recommended a foreign maid insurance plan from another insurer.

my comments:

sigh, the liability we shoulder when things go wrong, though no fault of anyone is something very real as this episode clearly illustrates. not to mention that i have to absorb the full costs of the 30% refund of the premium to my client from my own very small pockets.

nevertheless, i remain hopeful for the favourable response of my appeal from ntuc-income.

stay tuned.....

Friday, February 3, 2012

foreign maid insurance


on my recommendation (against the one sold by the maid agency from another insurer), my client took up the foreign maid insurance from ntuc-income.

short and sweet, right?

no, because there is a twist here in terms of the maid's pregnancy test (while in indonesia) proved positive which invalidated her in-principle approval from the ministry of manpower to work in singapore.

and to cut a long story short, i applied to ntuc-income to cancel the foreign maid insurance policy and here, there was another twist because there was a 'penalty' imposed on the cancellation which amounted to 30% of the premium paid.

my comments:

contractually, ntuc-income has the legal right to impose the penalty because there is a clause in the policy document stating there will only be a refund of 70% of the premium for cancellation within 60 days of the inception of the policy.

needless to say, my client was extremely displeased with me and the only way for a resolution of my client's unhappiness was for me to make up the loss of 30% of the premium paid.

but i'm not letting this episode end here as i'll be appealing to ntuc-income to refund the premium in full.

stay tuned.....

Sunday, January 29, 2012

travel insurance to avoid


ms teo siew hoon's letter; captioned: travel insurance to avoid was published in the st forum online on saturday.

in her letter, ms teo recounted her claim's experience with general insurer, chartis on her damaged luggage which took almost 4 weeks (add another 2 weeks after her claim submission) for her to be informed to obtain a quotation to repair her luggage and send it to her insurer.

as a comparison, ms teo cited that if she had made a similar claim for damaged luggage to an airline, the latter would probably pick up the luggage, assess the repair and inform quickly whether the luggage would be repaired and returned or replaced.

she ended by expressing her hope that other insurance companies do not make their customers wait the way chartis has done.

my comments:

as a financial planner and a traveler myself, i can empathise with ms teo over her damaged luggage and also her claim experience with chartis.

many of my clients take up travel insurance, which is probably the smallest priced component of any vacation for peace of mind.

i am not trying to discount or minimise ms teo's feedback but in my experience, travel insurance claims like damaged luggage are very much the norm, rather than the exception and insurers usually admit and pay such claims speedily, after due diligence of course.

but take a step back and look at the big picture in terms of the comprehensiveness of what a travel policy covers and not what ms teo has chosen to focus on how an airline will deal with her damaged luggage.

after all, as the saying goes, one swallow does not a summer make.