A customer applied for 4 low cost term insurance (iTerm) for members of the family though online applicaiton.
She was delighted with the low premiums and hassle free processing. There is no need for medical examinations. She only has to complete 4 simple health questions.
The average processing time for i-Term is about 3 working days, compared to 6 days for traditional products.
Monday, July 10, 2006
Purchase of life annuities from business center
A customer asked for my advice on wheter to buy an annuity at age 55 or leave it with CPF until age 62.
I referred the customer to our annuity specialist based on our business center.
The customer was delighted with the "prompt and professional support" given by the annuity specialist.
His two sisters turned up later to buy two life annuities and to invest in the growth plan (single premium endowment).
I referred the customer to our annuity specialist based on our business center.
The customer was delighted with the "prompt and professional support" given by the annuity specialist.
His two sisters turned up later to buy two life annuities and to invest in the growth plan (single premium endowment).
Sunday, July 09, 2006
Elderly are active at work
I stayed at a resort hotel outside of Munich to attend the World Cup match.
On my arrival, an elderly German (who looked nearly 70) helped me to carry my luggage to my room. He looked fit and strong.
Over the next few days, I met a few elderly persons working in the hotel. They include the night front desk attendant and the health center attendent. The elderly attendants was quite prominent - always attentive, always helpful, always cheerful.
The hotel also had younger employees dressed in the attractive Bavarian costumes.
Germany has a way of keeping their elderly people active at work.
On my arrival, an elderly German (who looked nearly 70) helped me to carry my luggage to my room. He looked fit and strong.
Over the next few days, I met a few elderly persons working in the hotel. They include the night front desk attendant and the health center attendent. The elderly attendants was quite prominent - always attentive, always helpful, always cheerful.
The hotel also had younger employees dressed in the attractive Bavarian costumes.
Germany has a way of keeping their elderly people active at work.
Customer wants on-the-spot settlement
SUGGESTON FROM CUSTOMER
Dear Mr Tan,
Currently when there is an accident, the vehicles have to go to IDAC to assess the damages. Later, they have to get another assessor to assess the cost of repairs based on the IDAC report.
If both parties have the same insurer (NTUC Income), can the monetary assessment be done by NTUC Income on the spot and an offer be made to the parties involved. This will save admininstration and legal cost and time.
MY REPLY
Dear
We have a practice to offer monetary compensation on the spot, but it has to be done at our office. Previously, we operated this service at various centers, but the demand was quite low.
I will ask my claim service manager to send our practice note to you on this matter.
Dear Mr Tan,
Currently when there is an accident, the vehicles have to go to IDAC to assess the damages. Later, they have to get another assessor to assess the cost of repairs based on the IDAC report.
If both parties have the same insurer (NTUC Income), can the monetary assessment be done by NTUC Income on the spot and an offer be made to the parties involved. This will save admininstration and legal cost and time.
MY REPLY
Dear
We have a practice to offer monetary compensation on the spot, but it has to be done at our office. Previously, we operated this service at various centers, but the demand was quite low.
I will ask my claim service manager to send our practice note to you on this matter.
Please be more understanding
A customer was unhappy with some mix-up in his requests to upgrade to the enhanced Incomeshield plan.
He originally wanted to upgrade, but later changed his mind. During this time, our collegues failed to act on his intention correctly. This made him very angry.
He sent a strong e-mail to me. I gave him this reply:
Dear
I will ask my service quality manager to call you and find out what your intentions are.
During this period, all my colleagues are working under great stress. I wish to ask you to be more understanding and patient. Please do not use strong language unnecesarily. My colleagues also have their feelings.
I hope that we can sort this matter out to your satisfaction.
He originally wanted to upgrade, but later changed his mind. During this time, our collegues failed to act on his intention correctly. This made him very angry.
He sent a strong e-mail to me. I gave him this reply:
Dear
I will ask my service quality manager to call you and find out what your intentions are.
During this period, all my colleagues are working under great stress. I wish to ask you to be more understanding and patient. Please do not use strong language unnecesarily. My colleagues also have their feelings.
I hope that we can sort this matter out to your satisfaction.
Global bond fund earns average of 4% return
EDITED
Our Global Bond fund earned about 4% return, after conversion into Singapore $, as follows:
The average yield to maturity of the investments on the fund is 3.99%.
Investors who wish to have a more stable modest return can consider the Global Bond fund.
Our Global Bond fund earned about 4% return, after conversion into Singapore $, as follows:
Global
Yield(YTM) Bond
2003 3.60%
2004 3.47%
2005 4.03%
2006 (6m) 4.01%
The average yield to maturity of the investments on the fund is 3.99%.
Investors who wish to have a more stable modest return can consider the Global Bond fund.
Saturday, July 08, 2006
Tips on choosing your investment
QUESTION
I am afraid to invest now, as the market may fall further and I make a loss. What is your advice?
REPLY
When the market falls, you do not really make a loss, if you are a long term investor. The market will recover within a few weeks or months. You never know when the market will turn around, and if it does, you will miss the opportunity.
It is better to invest when the market is low, as you will get a better return.
QUESTION
Is it better to take a guaranteed return, even if it is lower?
REPLY
If you want a guaranteed return, you will get 2% from a bank deposit or 3% from government bonds. Your return is locked up for the duration of the deposit or bond. If you wish to sell the bond prematurely, when interest rate increases, you will have to take a capital loss.
For a long term investor, it is better to invest in equities (which gives a higher return), and choose the right time to realise your investments.
I am afraid to invest now, as the market may fall further and I make a loss. What is your advice?
REPLY
When the market falls, you do not really make a loss, if you are a long term investor. The market will recover within a few weeks or months. You never know when the market will turn around, and if it does, you will miss the opportunity.
It is better to invest when the market is low, as you will get a better return.
QUESTION
Is it better to take a guaranteed return, even if it is lower?
REPLY
If you want a guaranteed return, you will get 2% from a bank deposit or 3% from government bonds. Your return is locked up for the duration of the deposit or bond. If you wish to sell the bond prematurely, when interest rate increases, you will have to take a capital loss.
For a long term investor, it is better to invest in equities (which gives a higher return), and choose the right time to realise your investments.
Friday, July 07, 2006
Bank wealth planner provide misleading information
FROM CUSTOMER
Dear Tan,
Other bank's wealth planner told me that NTUC's mortality charges and insurance charges are higher as NTUC faced with more claims from policyholders than the bank. May I enquire on this point ?
When I buy a unit, what is the % of selling price from the purchased price of the unit bought in order to cover all costs ( distribution, fund charge, expenses, etc) to reach breakeven?
MY REPLY
Dear
I will ask our specialist to provide the answers to you.
The bank's wealth planner mislead you. We do not have any mortality charge at all.
If you wish to have any life insurance cover, you buy a separate rider at a flat premium rate. Many people find it to be more transparent.
Dear Tan,
Other bank's wealth planner told me that NTUC's mortality charges and insurance charges are higher as NTUC faced with more claims from policyholders than the bank. May I enquire on this point ?
When I buy a unit, what is the % of selling price from the purchased price of the unit bought in order to cover all costs ( distribution, fund charge, expenses, etc) to reach breakeven?
MY REPLY
Dear
I will ask our specialist to provide the answers to you.
The bank's wealth planner mislead you. We do not have any mortality charge at all.
If you wish to have any life insurance cover, you buy a separate rider at a flat premium rate. Many people find it to be more transparent.
Delay in approval of Enhanced Incomeshield
FROM CUSTOMER
Dear Mr Tan,
We visited your NTUC Income Business Centre in both Brah Basah on 2 June and Jurong East branch on 28 June.
Your staff who attended to us are to be congratulated of doing a great job. They attended and explained to us very efficiently and clearly on our request to convert our current Medishield plan to the Enhanced Incomeshield. Both of us are above 55 years old.
However, I was extremely concerned being told by your staff that in both cases, they would take at least two months to respond to our application. They informed us there are limited resources in your underwriting department. We certainly appreciate you would look into this and speed up the process.
MY REPLY
Thank you for our feedback. I agree with you that the two months' delay is not acceptable. This is due to a heavy overload of work. We expect to clear the backlog within the next few months.
Dear Mr Tan,
We visited your NTUC Income Business Centre in both Brah Basah on 2 June and Jurong East branch on 28 June.
Your staff who attended to us are to be congratulated of doing a great job. They attended and explained to us very efficiently and clearly on our request to convert our current Medishield plan to the Enhanced Incomeshield. Both of us are above 55 years old.
However, I was extremely concerned being told by your staff that in both cases, they would take at least two months to respond to our application. They informed us there are limited resources in your underwriting department. We certainly appreciate you would look into this and speed up the process.
MY REPLY
Thank you for our feedback. I agree with you that the two months' delay is not acceptable. This is due to a heavy overload of work. We expect to clear the backlog within the next few months.
Fly back to Singapore after watching World Cup
I took a economy flight on SIA to Singapore, after watching the World Cup in Germany. The steward recognised and greeted me. He said that his insurance policies are with NTUC Income.
The supervisor came later to introduce himself and said, "Mr Tan, I expected you to be in the first class. How are you enjoying your flight?".
I gave him a smile. I usually fly economy class. I am not prepared to pay 6 times to fly first class. All our managers fly economy class as well.
We keep our expenses low, so that our customers can pay lower premium. They also enjoy a better return on their savings with us.
I introduced Logic9 (aka Sudoku) to the passenger sitting next to me. She is a retired teacher from Munich, Germany. She is travelling in a group tour to Singapore and Bali.
She did not know about the puzzle before. I showed her how to play the puzzle. She became hooked on it. I presented our Logic9 pocketbook to her. She will probably remember me for a long time.
It is so easy to get somone hooked on Logic9. No wonder, it is so popular around the world.
The supervisor came later to introduce himself and said, "Mr Tan, I expected you to be in the first class. How are you enjoying your flight?".
I gave him a smile. I usually fly economy class. I am not prepared to pay 6 times to fly first class. All our managers fly economy class as well.
We keep our expenses low, so that our customers can pay lower premium. They also enjoy a better return on their savings with us.
I introduced Logic9 (aka Sudoku) to the passenger sitting next to me. She is a retired teacher from Munich, Germany. She is travelling in a group tour to Singapore and Bali.
She did not know about the puzzle before. I showed her how to play the puzzle. She became hooked on it. I presented our Logic9 pocketbook to her. She will probably remember me for a long time.
It is so easy to get somone hooked on Logic9. No wonder, it is so popular around the world.
Thursday, July 06, 2006
Village life in Bavaria, Germany
I asked the tour guide. What is a village?
Here is the interesting answer. In a village, there is always a church. The people of Bavaria are religious, mostly Catholics. Sunday is for the church and for rest. No business is done on Sunday.
The village has an inn. It is a place for people to go and drink beer, socialise or to have food. It also has accommodation for travellers.
Quite likely, there is a primary school for the first four years of education. When the students are older, they can go to a secondary school in a larger village nearby.
There is a May pole in the road leading to the village. It shows the shops and trades available in the village, eg baker, butcher, doctor, carpenter, etc. It serves like a "yellow page" directory for the village.
One day of the week is set aside for market day.
The village has many assocaitions, eg a sports association, a fire association, and many others. These associations organise many activities for the villagers to meet regularly. Most young people join the fire assocation to learn about how to put out fire. It is a way to keep them occupied, so they do not get bored and cause trouble.
The social life is interesting in the village. Every one knows about every other person in the village.
Here is the interesting answer. In a village, there is always a church. The people of Bavaria are religious, mostly Catholics. Sunday is for the church and for rest. No business is done on Sunday.
The village has an inn. It is a place for people to go and drink beer, socialise or to have food. It also has accommodation for travellers.
Quite likely, there is a primary school for the first four years of education. When the students are older, they can go to a secondary school in a larger village nearby.
There is a May pole in the road leading to the village. It shows the shops and trades available in the village, eg baker, butcher, doctor, carpenter, etc. It serves like a "yellow page" directory for the village.
One day of the week is set aside for market day.
The village has many assocaitions, eg a sports association, a fire association, and many others. These associations organise many activities for the villagers to meet regularly. Most young people join the fire assocation to learn about how to put out fire. It is a way to keep them occupied, so they do not get bored and cause trouble.
The social life is interesting in the village. Every one knows about every other person in the village.
FIFA World Cup Semi-Finals (France v Portugal)
I attended the FIFA World Cup semi-final match between France and Portugal at the stadium in Munich.
It is an impressive stadium. It has 65,000 comforable seats. All the seats are covered. Only the field is open to the weather.
The stadium has several hospitality lounges for corporate guests. I was fortunate to be invited by my host.
The game was exciting all the way, down to the last minute. Portugal had many chances, but they failed to convert into goals. It was disappointing for their supporters and their coach.
France played well. They were a strong team, with robust players. They deserve to win.
The stadium was fully sold. I estimated that 75% of the stadium were French supporters, by looking at the colors of their clothings and the volume of their cheers. Portugal had 25% supporters.
The stadium is beautiful from the outside. It has an impressive external "coat". The stadium has three sets of lights - white, blue, red. If there is an international game, the stadium will be lighted "white". There are two football teams in Munich - the Bayern and the 1816 (?). The other colors of the stadium indicate which team is playing.
My host said that the admission ticket to watch a football match is between Euro 30 to 60. It is quite high, compared to Singapore prices.
I now look forward to the Grand Finals between France and Italy. Much earlier, many people expected the match to be between Germany and Brazil. So did I. This is football. The ball is round. Anything can happen.
It is an impressive stadium. It has 65,000 comforable seats. All the seats are covered. Only the field is open to the weather.
The stadium has several hospitality lounges for corporate guests. I was fortunate to be invited by my host.
The game was exciting all the way, down to the last minute. Portugal had many chances, but they failed to convert into goals. It was disappointing for their supporters and their coach.
France played well. They were a strong team, with robust players. They deserve to win.
The stadium was fully sold. I estimated that 75% of the stadium were French supporters, by looking at the colors of their clothings and the volume of their cheers. Portugal had 25% supporters.
The stadium is beautiful from the outside. It has an impressive external "coat". The stadium has three sets of lights - white, blue, red. If there is an international game, the stadium will be lighted "white". There are two football teams in Munich - the Bayern and the 1816 (?). The other colors of the stadium indicate which team is playing.
My host said that the admission ticket to watch a football match is between Euro 30 to 60. It is quite high, compared to Singapore prices.
I now look forward to the Grand Finals between France and Italy. Much earlier, many people expected the match to be between Germany and Brazil. So did I. This is football. The ball is round. Anything can happen.
Global stockmarkets are recovering
I track the global stock market indices against a 5 day moving average and the 50 day moving average. If the current index is above the moving average, it suggest that the market is getting stronger. If it is below the average, the market is still weak.
Here are the findings for the London, Japan, Singapore and New York and Technology shares as at 3 July 2006
- all of the markets are higher than the 5 day moving average by 1% or 2%, ie the markets are recovering well
- the US and UK shares at the 50 day moving average, ie these markets are now neutral
- the Japan, Singapore and Techology shares are about 2% below the 50 day moving average, ie the markets have still not reached the neutral point.
My general conclusion: most of the markets are recovering well.;
Here are the findings for the London, Japan, Singapore and New York and Technology shares as at 3 July 2006
- all of the markets are higher than the 5 day moving average by 1% or 2%, ie the markets are recovering well
- the US and UK shares at the 50 day moving average, ie these markets are now neutral
- the Japan, Singapore and Techology shares are about 2% below the 50 day moving average, ie the markets have still not reached the neutral point.
My general conclusion: most of the markets are recovering well.;
Tuesday, July 04, 2006
Invest in specialised funds?
QUESTION:
Dear Mr Tan,
Would you reccommend the following funds:-
Seems to have produced negative results?
REPLY:
For a long term investor, I recommend the Combined Growth Fund.
The specialised funds (ie Technology or Japan) requires someone who is more knowledgeable about the market. As you are not familiar, I sugget that you should invest in the Combined Growth Fund.
Tan Kin Lian
CEO, NTUC Income
Dear Mr Tan,
Would you reccommend the following funds:-
Japan Tech
Average 2.70% -12.00%
YTD 2006 -4.20% -6.40%
Seems to have produced negative results?
REPLY:
For a long term investor, I recommend the Combined Growth Fund.
The specialised funds (ie Technology or Japan) requires someone who is more knowledgeable about the market. As you are not familiar, I sugget that you should invest in the Combined Growth Fund.
Tan Kin Lian
CEO, NTUC Income
Global stockmarkets are now recovering
The global stockmarkets has been recovering during the past two weeks.
As an example, the Japanese market (as reflected by the Nikkei index) fell from a peak of 17,500 two months ago, to a low of 14,300 (about 18%) and has now recoverd to 15,700 (up 10% from its low).
The other stockmarkets displayed a similar pattern, but not to the same extent as reflected in Japan.
The Combined Growth Fund from NTUC Income reflect a smaller degree of fluctuation, as it is 30% invested in bonds. At the lowest point, the drop was 8%. It has since partially recovered.
For a long term investor, it is time to make an investment when the price is still low.
As an example, the Japanese market (as reflected by the Nikkei index) fell from a peak of 17,500 two months ago, to a low of 14,300 (about 18%) and has now recoverd to 15,700 (up 10% from its low).
The other stockmarkets displayed a similar pattern, but not to the same extent as reflected in Japan.
The Combined Growth Fund from NTUC Income reflect a smaller degree of fluctuation, as it is 30% invested in bonds. At the lowest point, the drop was 8%. It has since partially recovered.
For a long term investor, it is time to make an investment when the price is still low.
Will NTUC Income close down its small funds?
QUESTION:
Dear Mr Tan,
I have bought 2 different unit trusts where the bank send me statement that the funds, one has been transferred to another management. Another will be closed by certain date where the price is 40% less the initial launch price. So I am forced to acccept a loss.
Will this happen to NTUC units ?
REPLY
NTUC Income acts fairly in the interest of our customers. We do not intend to close any of our small funds. If we do, we will give generous terms to the customers.
Dear Mr Tan,
I have bought 2 different unit trusts where the bank send me statement that the funds, one has been transferred to another management. Another will be closed by certain date where the price is 40% less the initial launch price. So I am forced to acccept a loss.
Will this happen to NTUC units ?
REPLY
NTUC Income acts fairly in the interest of our customers. We do not intend to close any of our small funds. If we do, we will give generous terms to the customers.
Monday, July 03, 2006
3 tips for the young - worth at least $20,000
Here are 3 valuable tips.
1. Invest in the right investment (earn 6% instead of 2%), and earn $146,000 more
2. Invest in a low cost fund (charge 1% instead of 2% p.a.) and earn $48,000 more.
3. Invest in a low cost ILP (7 months instead of 19 months) and earn $20,000 more.
* assume you save and invest $300 a month over 30 years
Attend my educational seminar, 6877 3366.
Or visit the website, www.income.coop. A talking powerpoint (20 mins) will be ready by 7 June.
1. Invest in the right investment (earn 6% instead of 2%), and earn $146,000 more
2. Invest in a low cost fund (charge 1% instead of 2% p.a.) and earn $48,000 more.
3. Invest in a low cost ILP (7 months instead of 19 months) and earn $20,000 more.
* assume you save and invest $300 a month over 30 years
Attend my educational seminar, 6877 3366.
Or visit the website, www.income.coop. A talking powerpoint (20 mins) will be ready by 7 June.
Why do travel website only recommend 1 travel insurance provider?
There are several websites that gives you competitive quotes for airfare and hotels. But they only recommend one travel insurance product. Do you know why?
The answer is simple. For Travel Insurance, there is no standard commission. The website owner is likely to promote the travel insurance that pays the highest commission to them. Do not buy their travel insurance.
NTUC Income provides low-cost, hassle free Travel Insurance. We pay very low commission, and pass the cost savings to our customers by charging low premium rates.
So be a wise consumer. Book your Travel Insurance directly with NTUC Income. Call 6332 3456.
The answer is simple. For Travel Insurance, there is no standard commission. The website owner is likely to promote the travel insurance that pays the highest commission to them. Do not buy their travel insurance.
NTUC Income provides low-cost, hassle free Travel Insurance. We pay very low commission, and pass the cost savings to our customers by charging low premium rates.
So be a wise consumer. Book your Travel Insurance directly with NTUC Income. Call 6332 3456.
Do not give $20,000 away!
If you invest in most investment-linked plan in the market, it can take away 19 months of your savings to pay agent's commission and other expenses.
If you invest with NTUC Income, we will take away only 7 months. Compared to competitor's ILP plan, we invest an additional 12 months of your savings for your benefit.
If you save $300 a month, the additional 12 months of your savings, invested to earn an average of 6% per annum (not guaranteed) for 30 years can amount to $20,000. We can give you $20,000 more!
Lesson: Invest in an ILP plan that takes away only 7 months of your savings. Avoid a ILP plan that take away 19 months!
If you invest with NTUC Income, we will take away only 7 months. Compared to competitor's ILP plan, we invest an additional 12 months of your savings for your benefit.
If you save $300 a month, the additional 12 months of your savings, invested to earn an average of 6% per annum (not guaranteed) for 30 years can amount to $20,000. We can give you $20,000 more!
Lesson: Invest in an ILP plan that takes away only 7 months of your savings. Avoid a ILP plan that take away 19 months!
Earn 3% and more on your un-fixed deposits
Do you want to earn 3% or more on your un-fixed deposits?
Our Flexi-Cash operates like a deposit in a bank. The current interest rate is about 3%. It will change with the money market. Right now, interest rate is increasing, so the interest rate on your deposit will also move up.
It is an un-fixed deposit becuase you can withdraw it at any time. There is no penalty. You are not locked in for 1 year or longer.
Your money is invested in our Money Market fund, which is invested mainly in the inter bank market (ie lent to other banks) or A rated money market instruments. The cost of investing is only 0.1% (yes, one tenth of 1%), during the promotion period.
Invest in the un-fixed deposit. It pays more, and gives full flexibility for your cash.
Go to www.income.coop and read our FAQ. Or call 6788 1111.
Our Flexi-Cash operates like a deposit in a bank. The current interest rate is about 3%. It will change with the money market. Right now, interest rate is increasing, so the interest rate on your deposit will also move up.
It is an un-fixed deposit becuase you can withdraw it at any time. There is no penalty. You are not locked in for 1 year or longer.
Your money is invested in our Money Market fund, which is invested mainly in the inter bank market (ie lent to other banks) or A rated money market instruments. The cost of investing is only 0.1% (yes, one tenth of 1%), during the promotion period.
Invest in the un-fixed deposit. It pays more, and gives full flexibility for your cash.
Go to www.income.coop and read our FAQ. Or call 6788 1111.
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