Someone said that Axa promoted "Buy Term and invest the difference".
When you invest in the Axa fund, you should select the single premium option, where the charges are quite modest.
If you select the regular premium option, you will have to incur a high distribution cost, which may not be disclosed to you by the agent. This was the experience of my friend, who was being offered a regular premium ILP at a roadshow.
For a comparison of the distribution cost, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
The distribution charge of 19 months under the AXA regular premium plan is quite high.
Wednesday, January 2, 2008
200% increase in premium for Plus rider
Dear Mr. Tan,
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Travel tips for Taiwan
Hi Mr. Tan,
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
Hot spring in Wulai
I visited the village of Wulai yesterday. I spent 2 hours at a hot spring there. It is refreshing to visit a hot spring during winter. Many of the local people visit the hotspring to relax and be refreshed.
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
First Prize for the Amazing Number game
Dear Mr. Tan,
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Treating High Blood Pressure
My friend's mother has high blood pressure. He sent an e-mail to ask for my recommendation on a specialist to treat this condition. I asked my wife for advice, as she is familiar with this medical condition.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
Views on investing your money
COMMENTS POSTED IN MY BLOG
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
Elevated expressways in Taipei
Taipei had a network of elevated expressways. They travelled along the same path as the road beneath them. The traffic moved fast on the expressways. I was never caught in a congested exprssway, even at busy hours.
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
MRT ride in Taipei
I took the MRT in Taipei from City Hall Station to Xindian station. The journey of 13 stops took 30 minutes and involved two transfers. The transfers were convenient and easy. One transfer was on the same platform.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
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