tag:blogger.com,1999:blog-11702093.post9177417324597250399..comments2024-03-28T22:56:40.743+08:00Comments on Tan Kin Lian's Blog: Why only term insurance plans make sense nowTan Kin Lianhttp://www.blogger.com/profile/00617069056914635271noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11702093.post-54679033257399807202010-11-15T17:51:03.228+08:002010-11-15T17:51:03.228+08:00I agree that the best approach is "buy term a...I agree that the best approach is "buy term and invest the rest".<br />However, the likely case is we will see many "buy term and spend the rest". <br />A fairly priced whole life is probably better for people who do not have the discipline. <br />Unfortunately, the incentive system in the insurance industry will see to it that whole life won't be priced fairly; and the ugly step-sisters (malls, fashion industry, advertising ...) will see to it that money supposed to be saved will be spent.DareToActhttps://www.blogger.com/profile/05826201332175280188noreply@blogger.comtag:blogger.com,1999:blog-11702093.post-11209051878931115182010-11-15T12:21:22.558+08:002010-11-15T12:21:22.558+08:00Hi Spur
How about writing to the Straits Times to ...Hi Spur<br />How about writing to the Straits Times to share your experience? Or get someone else to write and share their similar experience? There must be many policyholders in the same situation as you.Tan Kin Lianhttps://www.blogger.com/profile/00617069056914635271noreply@blogger.comtag:blogger.com,1999:blog-11702093.post-8926371355018235442010-11-15T12:13:19.547+08:002010-11-15T12:13:19.547+08:00I can attest to the good yields of wholelife polic...I can attest to the good yields of wholelife policy during Mr Tan's tenure at Ntuc.<br /><br />Yesterday, out of curiosity, I compared my wife's old Ntuc wholelife policy with my GE wholelife. Hers "break even" after only about 8 years, and the cash value has been accumulating more than the premiums ever since. Mine break even only after 16 years!<br /><br />Unfortunately for my wife, the pace of cash value increase has slowed down since the new mgmt took over, due to their bonus cuts. According to the new Ntuc spin of "balloon" terminal bonus, my wife has to maintain her wholelife until she reaches 65 before the *projected* cash value is similar to the old amount under Mr Tan. Luckily both our wholelife policies are small and incur small amounts to maintain.<br /><br />The yield structure of current Ntuc policies are now basically the same as for other commercial insurance companies. i.e. a parabolic curve going up from left to right, but with a very shallow gradient in the first 25-30 yrs, and only having a steeper gradient after that --- corresponding to the non-guaranteed "balloon" terminal bonus.<br /><br />Take a look at the current BIs of Ntuc policies. Under the optimistic 5.25% scenario, it now takes at least 13 yrs or more to break even. In actuality, I bet it will take about 15 years for the current policies to break even --- same as other insurance companies liao.<br /><br />During Mr Tan's time, Ntuc's bonus structure was more of a simple straight line going up from left to right, with a reasonable gradient. i.e. Fair bonus payouts whenever the par fund makes a surplus.Spurhttps://www.blogger.com/profile/11824813457786462446noreply@blogger.com