Tan Kin Lian's Blog: Keep your savings in your personal insurance policy

Friday, February 01, 2008

Keep your savings in your personal insurance policy

A mother bought an endowement policy in the name of her son. The policy matured recently and a cheque was delivered to the home. The son was under custody for drug rehabilation.

The mother was worried that if the maturity money is credited into the son's account, he will use it to buy drugs.

But she is stuck. The money legally belonged to the son, even though she paid the premium over the years. The mother is poor, and actually need the money for her own use.

Lesson: It is better to keep savings in your own name, and not in the name of your children. You can use the money for their education or other suitable purchase at a future date. If you buy the policy in the name of your child, you will lose control of the money.

4 comments:

Anonymous said...: This has been the problem. Third party policy is never encouraged becuase this sort of situation can arise.
The truth is third party policy is intended to exploit the emotion of parents and they have no financial planning value.This is marketing exploitation.
Most people like to set up endowment, whole life or education plans under the children's name. The life assured can be their name but not the ownership. Example wholelife can be assigned to life assured when you are sure they are ready and responsible financially.
For education funding it is better that the parents take up under their name. The advantage is, as life assured, anything that happens to him or her one lumpsum is paid and can be invested until it is ready for disbursement.All those features like waiver of premium, monthly income for the child and H&S are all rubbish. They are marketing ploys and they serve to distract the customers from the real issue. Some of your premium goes to pay for them.; February 01, 2008 1:29 PM
Anonymous said...: Forum > Online Story
Jan 23, 2008
Unbecoming behaviour of NTUC Income staff at Sengkang MRT station
NTUC Income has set up a permanent booth at the Sengkang MRT station. What started initially as polite soliciting by the NTUC Income agents is now creating a nuisance.

The behaviour of the agents is abhorrent. Their antics are amusing. The loud talk, laughter and joking all show a lack of seriousness in their job.

They don't walk, they just jump and hop and place themselves in front of you. They block your way by extending their hands in both directions. When you try to bow down to wriggle out, they lower their hand.

Even when the person says 'no', the agents keep walking along with him/her for quite a long distance. Thereafter they laugh out loud and signal back to their 'base station'.

This kind of ridiculing the public is quite reprehensible. When a single office-going woman is spotted, the agents get excited and harass her no end. I have seen many people expressing disappointment after being accosted by these agents.

To avoid the unwanted nuisance, commuters now take a roundabout route to the MRT. I would appreciate it if the NTUC Income management can look into this and restore the prestige of the profession.

N. Nageswaran; February 01, 2008 11:13 PM
Anonymous said...: My wife and I each bought an education policy for our son. It will mature this year. Does it mean that the cheque will be made out in my son's name? I have always thought that it should be made out in my name since I paid for it.; February 02, 2008 3:45 AM
Anonymous said...: If you vested the policy, they are your children's legally. You can check with the insurance company or your agent to ensure that the money goes to you.; February 03, 2008 9:09 PM