Thursday, December 06, 2007

Know what you'll get from your investment

By Larry Haverkamp (Doc Money)

CONSIDER this:

Pay me $200 per month for 20 years, and I will invest it for you. In the first year, all your money will go to me. After that, I'll invest it, but I won't tell you where it is invested, how much I take for expenses or even the rate of return you earn.

Life insurance companies offer this for two popular policies -
(i) endowment, including education and
(ii) whole life.

Sales have been phenomenal. On average, each Singapore household owns $55,000 of these. This makes it the second largest investment after our home, yet these policies are often surrounded by mystery.The key to solving it lies in the benefit illustration which is filled with facts and figures. Let's investigate.

Read the article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,141522,00.html?

http://www.tankinlian.com/drmoney/
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2 comments:

Anonymous said...

Mr Tan,

Don't you feel proud that you make the endowment and whole life craze happen? You spend the last few decades selling them!

December 06, 2007 6:34 PM
Anonymous said...

Foe decades, customers have been fooled and hoodwinked by insurers to buy endowment and whole life plans.
Who actually benefit from these products? The salesmen and the companies.
What about the customers?
Ask the retirees about the endowment bought 20 years ago.Did you know that they recieved slightly more than 50% of the projected cash value? Their hope of retirement was based on the absolute or total amount at maurity
but they got half.How to retire?
Don't be fooled by the "best kept secret" of NTUC. The secret is NTUC also could not give as projected like all other insurers. Ask them if they could give the same as the secret in the future.Its return may be higher.So those people who bought NTUC endowment to retire will be disappointed too though lesser.
When you buy endowment you don't know where it is heading. Only the insurers know. There is no transparency but with ILPs you know.

December 07, 2007 9:37 AM

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