Wednesday, January 30, 2008
Actuary joke: Feeling comfortable
The actuary says, "If you put one foot in the oven and another foot in the freezer, your average body temperature will be quite comfortable".
Joke: Criminal lawyer
"Do you have a criminal lawyer in this town?"
"Well, we are pretty sure we do but we haven't been able to prove it yet."
"Well, we are pretty sure we do but we haven't been able to prove it yet."
NTUC Growth Fund
Dear Mr. Tan,
I have invested in NTUC Growth fund. I saw that this fund's past performance is very good, outperformed most global balanced fund on the market. However, this is also during the period when you are CEO of NTUC.
I am not sure whether I would continue my regular savings plan on this fund any more since the new managment does not do many good things for the customers nowadays. I worried about this fund's future performance. Also, information of all NTUC fund doesn't seem to be trasparent to customers, we cannot download annual report and prospectus like most other fund.
After some research, I found that there is one fund from UOB UOB Growthpath series which has its major holding on index fund. Althought this fund's performance doesn't seem to be as good as NTUC Growth fund, but the index component keep this fund's ER as low as 1.17%.
I would like to seek your opinions on investing long term on this fund in stead of NTUC growth fund.
REPLY
I am not familiar with the UOB Growthpath series. But, from what you have described, it looks like a good fund.
The Growth Fund from NTUC Income should continue to be a good fund, as it is well diversified, actively managed (by external fund managers) and has a low expense ratio.
If you have any issue with the access to information from the website, you can bring it to the attention of the management of NTUC Income.
I have invested in NTUC Growth fund. I saw that this fund's past performance is very good, outperformed most global balanced fund on the market. However, this is also during the period when you are CEO of NTUC.
I am not sure whether I would continue my regular savings plan on this fund any more since the new managment does not do many good things for the customers nowadays. I worried about this fund's future performance. Also, information of all NTUC fund doesn't seem to be trasparent to customers, we cannot download annual report and prospectus like most other fund.
After some research, I found that there is one fund from UOB UOB Growthpath series which has its major holding on index fund. Althought this fund's performance doesn't seem to be as good as NTUC Growth fund, but the index component keep this fund's ER as low as 1.17%.
I would like to seek your opinions on investing long term on this fund in stead of NTUC growth fund.
REPLY
I am not familiar with the UOB Growthpath series. But, from what you have described, it looks like a good fund.
The Growth Fund from NTUC Income should continue to be a good fund, as it is well diversified, actively managed (by external fund managers) and has a low expense ratio.
If you have any issue with the access to information from the website, you can bring it to the attention of the management of NTUC Income.
Vivolife
Dear Mr, Tan,
I am looking at the product by Income, the Vivolife. How would you rate this product?
REPLY
Please read the various comments (from me and other people) about this product in my blog:
http://www.tankinlian.blogspot.com/
My advise is "Buy Term insurance and invest the difference".
Read this FAQ
http://www.tankinlian.com/faq/savings.html
I am looking at the product by Income, the Vivolife. How would you rate this product?
REPLY
Please read the various comments (from me and other people) about this product in my blog:
http://www.tankinlian.blogspot.com/
My advise is "Buy Term insurance and invest the difference".
Read this FAQ
http://www.tankinlian.com/faq/savings.html
Selling profitable products
Mr. Tan,
Was the NTUC Income Limited Premium Whole Life introduced when you were still CEO of Income? If yes, can you give a comment why you allow such a bad product to be launched when you were in office?
Is it because while in office, you have to ensure good revenue for the company and hence has to sell PROFITABLE product? If so, how can the public be very sure that your new "campaign" against your own company is not due to some hidden agenda? (Not particularly to this product)
When you were in office, why did you allow your company to sell endowments, whole life to the public and have the agent earn a big commission? You should have eliminated all participating products and fire all your agents. Can you explain?
I like to bring to your reminder that your insurance agents were responsible in bringing Income to this level of success. Without them,you cannot never have achieved what you had achieved. Do not forget that your success was due to the hardwork of many AGENTS for without sales, you will have no salary when you were CEO.
For your information, I was not and I am not a NTUC Income agent.
REPLY
I have covered this point on a few occasions in the past.
During my time, the Income agents sell products at a modest level of commission and were able to bring products at lower cost to the customers. This was an efficient means of marketing at that time.
The endowment and whole life policies sold in the past gave much better value to the policyholders compared to similar products in the market.
During my time, I was not concerned about selling PROFITABLE products, because most of the profits go back to the policyholders. I was only concerned about offering products that serve the needs of the policyholders and are fairly priced.
In today's environment, there are more efficient ways for customers to take care of their financial future. I recommend that they buy Term insurance and invest the difference.
Agents can continue to make a living by acting honestly, giving good advice, in the interest of the consumer. Do not exploit the ignorance of the consumer.
Was the NTUC Income Limited Premium Whole Life introduced when you were still CEO of Income? If yes, can you give a comment why you allow such a bad product to be launched when you were in office?
Is it because while in office, you have to ensure good revenue for the company and hence has to sell PROFITABLE product? If so, how can the public be very sure that your new "campaign" against your own company is not due to some hidden agenda? (Not particularly to this product)
When you were in office, why did you allow your company to sell endowments, whole life to the public and have the agent earn a big commission? You should have eliminated all participating products and fire all your agents. Can you explain?
I like to bring to your reminder that your insurance agents were responsible in bringing Income to this level of success. Without them,you cannot never have achieved what you had achieved. Do not forget that your success was due to the hardwork of many AGENTS for without sales, you will have no salary when you were CEO.
For your information, I was not and I am not a NTUC Income agent.
REPLY
I have covered this point on a few occasions in the past.
During my time, the Income agents sell products at a modest level of commission and were able to bring products at lower cost to the customers. This was an efficient means of marketing at that time.
The endowment and whole life policies sold in the past gave much better value to the policyholders compared to similar products in the market.
During my time, I was not concerned about selling PROFITABLE products, because most of the profits go back to the policyholders. I was only concerned about offering products that serve the needs of the policyholders and are fairly priced.
In today's environment, there are more efficient ways for customers to take care of their financial future. I recommend that they buy Term insurance and invest the difference.
Agents can continue to make a living by acting honestly, giving good advice, in the interest of the consumer. Do not exploit the ignorance of the consumer.
Policy will soon be withdrawn
Dear Mr. Tan,
A NTUC agent is trying to sell my the Limited Premium Whole Life policy. He said that this policy will soon be withdrawn and replaced by a new policy that offers lower return to the policyholder. He asked me to sign before the deadline. Please advise me.
REPLY
You should compare each policy on its own merits. What is the cost of insurance? What is the return? Is there a better option to get the coverage? Do not buy a policy just because it will soon be withdrawn.
Generally, a whole life policy provides a poor return, due to the high upfront expenses. The insurance agent wants to sell this policy, to earn a higher commission.
It is better to buy Term insurance and invest the difference. Read this FAQ
http://www.tankinlian.com/faq/savings.html
A NTUC agent is trying to sell my the Limited Premium Whole Life policy. He said that this policy will soon be withdrawn and replaced by a new policy that offers lower return to the policyholder. He asked me to sign before the deadline. Please advise me.
REPLY
You should compare each policy on its own merits. What is the cost of insurance? What is the return? Is there a better option to get the coverage? Do not buy a policy just because it will soon be withdrawn.
Generally, a whole life policy provides a poor return, due to the high upfront expenses. The insurance agent wants to sell this policy, to earn a higher commission.
It is better to buy Term insurance and invest the difference. Read this FAQ
http://www.tankinlian.com/faq/savings.html
Payment of claims
Dear Mr. Tan,
I am planning to get two policies from Income. I heard alot of negative feedbacks from friends and insurance agents about the difficulty of claiming the payout. One friend mentioned that her relative did not get the gaurantee payout as printed on the insurance form.
Do you have any comments about this? Particularly about the difficulty of making claims from Ntuc Income....now tt you are no longer working in Income... I thinkyour comments would be fair and just.
REPLY
Agents from other insurance companies have been passing this message "difficult to claim from NTUC Income" for the 30 years or longer. This is totally untrue, but the agents felt that this was the only way to turn customers away from the better value products offered by NTUC Income.
There were many instances where NTUC Income was the first to pay a claim, way before similar claims were paid by other insurance companies. NTUC Income practiced prompt and fair settlement of claims. I believe that the pro-customer claim practice continues today.
Wish you all the best.
I am planning to get two policies from Income. I heard alot of negative feedbacks from friends and insurance agents about the difficulty of claiming the payout. One friend mentioned that her relative did not get the gaurantee payout as printed on the insurance form.
Do you have any comments about this? Particularly about the difficulty of making claims from Ntuc Income....now tt you are no longer working in Income... I thinkyour comments would be fair and just.
REPLY
Agents from other insurance companies have been passing this message "difficult to claim from NTUC Income" for the 30 years or longer. This is totally untrue, but the agents felt that this was the only way to turn customers away from the better value products offered by NTUC Income.
There were many instances where NTUC Income was the first to pay a claim, way before similar claims were paid by other insurance companies. NTUC Income practiced prompt and fair settlement of claims. I believe that the pro-customer claim practice continues today.
Wish you all the best.
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