NTUC Income operates a car sharing scheme with more than 3,000 paying members. This scheme is growing in popularity. Here is a feedback from a member:
FEEDBACK
You have got a great team and based on my experience with your team (guys like Kendrick, Dave and Yusoff and Han), are really proactive and go out of their way to support members like us.
Kendrick especially has supported me with the various issues that I faced eg. over the recent weekend, I had a car that was having some continuous sound coming from the back of the car.
Kendrick offered to return back to the office to look into arranging another courtesy car for me. Fortunately, the sound disappeared after an hour later.
Another time, again over the weekend, my car broke down and engine failed to start. Kendrick made altenate arrangement and that really helped a lot
As a result of such positive experience, I have thus always endeavour to recommend to people around me without a car to try out carcoop and refer them to
your website to sign up for trial services.
Saturday, April 01, 2006
Friday, March 31, 2006
Reverse Mortgage on HDB Flat - 4th loan
Brief profile: case 4
Mdm X, aged 72 years old is a widow. Her 2 children migrated overseas and now give her a monthly allowance of $400. Her 2-room HDB flat in Jln Bukit Merah has a market valuation of $105k. There is no outstanding loan.
At her request, we have exceptionally approved a lumpsum of $28k over 10 years. Lumpsum is granted to settle outstanding policy loan taken under our Guaranteed Life Annuity.
Mdm X, aged 72 years old is a widow. Her 2 children migrated overseas and now give her a monthly allowance of $400. Her 2-room HDB flat in Jln Bukit Merah has a market valuation of $105k. There is no outstanding loan.
At her request, we have exceptionally approved a lumpsum of $28k over 10 years. Lumpsum is granted to settle outstanding policy loan taken under our Guaranteed Life Annuity.
Tuesday, March 28, 2006
Save for your child's education
The cost of university education can be quite high. The average cost is:
Singapore $40,000
Australia $160,000
USA $280,000
The cost is expected to increase in future years.
Are you saving for your child's education?
If you save $300 a month over 16 years, the total savings with interest will be:
2% per annum: $68,000
6% per annum: $95,000
You can get 40% more, if you can invest in a plan that gives you a higher return, and risk reduced through diversification.
Singapore $40,000
Australia $160,000
USA $280,000
The cost is expected to increase in future years.
Are you saving for your child's education?
If you save $300 a month over 16 years, the total savings with interest will be:
2% per annum: $68,000
6% per annum: $95,000
You can get 40% more, if you can invest in a plan that gives you a higher return, and risk reduced through diversification.
Are Singaporeans working too hard?
In my view, the answer is "yes". Look at the people who work late hours most days of the week.
It is better to work "smart". One can be more effective by working less, and to work on the right priorities.
Here are my tips:
- communicate more
- do the easy things that produce quick results
- act promptly
- ask advice from other people
- do by trial and error
- think, use your judgement
- do not rely on your boss to tell you what to do.
These tips will lead you to more results with less work. It is working "smart".
It is better to work "smart". One can be more effective by working less, and to work on the right priorities.
Here are my tips:
- communicate more
- do the easy things that produce quick results
- act promptly
- ask advice from other people
- do by trial and error
- think, use your judgement
- do not rely on your boss to tell you what to do.
These tips will lead you to more results with less work. It is working "smart".
Advantage of a Nomination
NTUC Income allows a policyholder to make a specific nomination for each insurance policy. This allows the proceeds to be paid to the nominees named in the nomination.
If there is no nomination, the proceeds (up to $150,000) will be paid to a "rightful claimant" which is defined in the Insurance Act as the spouse or a family member. The rightful claimant receive the money and distribute it in an appropriate member among the family members.
The policy proceeds will be part of the estate. There will be other assets as well, such as shares, property and cash.
If there is a will, the estate will be distributed according to the will. If not, it will be distributed according to the intestate law.
However, in most cases, the family members will agree on how the estate is to be distributed. They do not need to follow the formula in the intestate law.
The advantage of a nomination is for the policyholder to set aside a sum of money to be distributed specifically to the nominees. This is useful, if the policyholder has a specific intent. Otherwise, the distribution according to the will or intestate law is a fairer way.
If there is no nomination, the proceeds (up to $150,000) will be paid to a "rightful claimant" which is defined in the Insurance Act as the spouse or a family member. The rightful claimant receive the money and distribute it in an appropriate member among the family members.
The policy proceeds will be part of the estate. There will be other assets as well, such as shares, property and cash.
If there is a will, the estate will be distributed according to the will. If not, it will be distributed according to the intestate law.
However, in most cases, the family members will agree on how the estate is to be distributed. They do not need to follow the formula in the intestate law.
The advantage of a nomination is for the policyholder to set aside a sum of money to be distributed specifically to the nominees. This is useful, if the policyholder has a specific intent. Otherwise, the distribution according to the will or intestate law is a fairer way.
Inflation rate over 50 years
50 years ago, the Reader's Digest magazine cost $1. Now, it cost $9.50.
What is the inflation rate over the past 50 years, for this magazine?
My financial calculator showed 4.6% per annum.
What is the inflation rate over the past 50 years, for this magazine?
My financial calculator showed 4.6% per annum.
An inappropriate request
A customer was unhappy with his interaction with my manager. He lodged a complaint about his "poor professionalism".
I replied that I have taken note of your feedback and that it was probably a misunderstanding.
The customer asked, "I suppose NTUC has in some way going to compensate me for the unnecessary and inconvenience caused?"
I replied that we will not be making any compensation and that his request was inappropriate.
He withdrew his request and closed the matter.
I replied that I have taken note of your feedback and that it was probably a misunderstanding.
The customer asked, "I suppose NTUC has in some way going to compensate me for the unnecessary and inconvenience caused?"
I replied that we will not be making any compensation and that his request was inappropriate.
He withdrew his request and closed the matter.
Saturday, March 25, 2006
Reverse mortage on HDB flats - 3 loans granted
The government recently approved granting of reverse mortgage on HDB flats. We received about 250 enquiries during the first few days.
We have since approved 3 reverse mortgage loans on HDB flats. All applicants are above 70 years old (condition set by NTUC Income). The names given below are not the real name.
CASE #1
Mr & Mrs Chan have no dependents. Their 3-room HDB Flat is situated at Marine Parade with a current market valuation of $240k. There is no outstanding loan on the
flat.
We have approved a monthly advance of $300 over 16 years at a modest loan to valuation ratio of 40%. We may eventually extend to a monthly advance of $540 (within acceptable loan to valuation ratio of 70%), pending borrower's decision.
CASE #2
Mr & Mrs Cheong have no dependents. Their 3-room HDB Flat (23 yrs old) is situated at Jurong East with a current market valuation of $160k. There is no outstanding loan on the flat.
We have approved a monthly advance of $295 over 18 years at maximum loan to
valuation ratio of 70%.
CASE #3
Mr Teo is currently staying with his wife. He is receiving some allowances from his 3 children. His 4-room HDB Flat (18 yrs old) is situated at Simei with a current market valuation of $250k. There is no outstanding loan on the flat.
At his request, we have approved a monthly advance of $400 over 12 years at
a modest loan to valuation ratio of 34%. He has intention to either sell
or downgrade the flat again (previously downgraded fr 5-room) at the end of
the loan period.
We have since approved 3 reverse mortgage loans on HDB flats. All applicants are above 70 years old (condition set by NTUC Income). The names given below are not the real name.
CASE #1
Mr & Mrs Chan have no dependents. Their 3-room HDB Flat is situated at Marine Parade with a current market valuation of $240k. There is no outstanding loan on the
flat.
We have approved a monthly advance of $300 over 16 years at a modest loan to valuation ratio of 40%. We may eventually extend to a monthly advance of $540 (within acceptable loan to valuation ratio of 70%), pending borrower's decision.
CASE #2
Mr & Mrs Cheong have no dependents. Their 3-room HDB Flat (23 yrs old) is situated at Jurong East with a current market valuation of $160k. There is no outstanding loan on the flat.
We have approved a monthly advance of $295 over 18 years at maximum loan to
valuation ratio of 70%.
CASE #3
Mr Teo is currently staying with his wife. He is receiving some allowances from his 3 children. His 4-room HDB Flat (18 yrs old) is situated at Simei with a current market valuation of $250k. There is no outstanding loan on the flat.
At his request, we have approved a monthly advance of $400 over 12 years at
a modest loan to valuation ratio of 34%. He has intention to either sell
or downgrade the flat again (previously downgraded fr 5-room) at the end of
the loan period.
Friday, March 24, 2006
Special features of loans from NTUC Income
NTUC Income plans to offer loans with the following special features:
- competitive rates
- fixed rates for first 3 or 5 years
- repayment start after one year
- lower rates for "preferred" policyholders
- deferment of installments due to loss of employment
- rebate on prompt payment of installments
We hope that our loans will be more suited to our policyholders.
- competitive rates
- fixed rates for first 3 or 5 years
- repayment start after one year
- lower rates for "preferred" policyholders
- deferment of installments due to loss of employment
- rebate on prompt payment of installments
We hope that our loans will be more suited to our policyholders.
Payment of death claims under DPS
24 March 2006
Editor
Forum Page
Straits Times
I refer to the article by Lorna Tan entitled "Key difference in two DPS options not highlighted: Case" (Straits Times, 23 March 2006)
The article highlighted some concern about how the benefit under the Dependent Protection Scheme that is insured with NTUC Income and Great Eastern will be paid out.
The sum involved is only $46,000 or slightly more. In the event of death and the absence of a nomination or will, the benefit will be paid to the family members (ie spouse, children, parents) according to the Insurance Act. It is usually quite straight forward.
NTUC has paid out 300 DPS claims since being appointed one of the insurer. More than 95% of these claims were paid to the proper claimants according to the Insurance Act, who were either executors of wills for those who have made a will or family members for those without a will. The remaining 5% are paid according to specific
nomination submitted by the policyholder. The nominees are usually family members.
Most policyholders will thus find this arrangement to be suitable.
A policyholder of NTUC Income can submit a specific nomination, if they wish to distribute the proceeds in a different manner. The forms are available on request.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Forum Page
Straits Times
I refer to the article by Lorna Tan entitled "Key difference in two DPS options not highlighted: Case" (Straits Times, 23 March 2006)
The article highlighted some concern about how the benefit under the Dependent Protection Scheme that is insured with NTUC Income and Great Eastern will be paid out.
The sum involved is only $46,000 or slightly more. In the event of death and the absence of a nomination or will, the benefit will be paid to the family members (ie spouse, children, parents) according to the Insurance Act. It is usually quite straight forward.
NTUC has paid out 300 DPS claims since being appointed one of the insurer. More than 95% of these claims were paid to the proper claimants according to the Insurance Act, who were either executors of wills for those who have made a will or family members for those without a will. The remaining 5% are paid according to specific
nomination submitted by the policyholder. The nominees are usually family members.
Most policyholders will thus find this arrangement to be suitable.
A policyholder of NTUC Income can submit a specific nomination, if they wish to distribute the proceeds in a different manner. The forms are available on request.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Reply: Annuity plans need improvements
24 March 2006
Editor
Zaobao
I refer to the letter, 'Annuity plans need improvements', by Mr Yang Song Jian, (Zaobao, 23 March).
Mr Yang asked insurance companies to improve the annuity plans to better take care of the elderly. More should be done educate Singaporeans on the importance of financial planning and savings.
I agree.
In a recent survey, we found out that 50 percent of the respondents wanted to increase their regular savings for their retirement. They know that their current savings in the Central Provident Fund is inadequate.
As a general guide, each person should set aside 10 to 15 percent of the regular earnings as savings for the future. They can use the savings for their retirement or to meet emergencies, in they lose their jobs or have to pay a large medical bill.
They should invest these savings in a flexible plan that can give an attractive rate of return, by investing for the long term.
NTUC Income offers a choice of attractive annuity plans. We handle 65 percent of all life annuities sold in Singapore. Our annuities offer an attractive return, an annual bonus (in most years) to supplement the guaranteed return, and a refund of the balance of the capital on death.
There are a few ways for the public to learn about financial planning:
- see an insurance adviser;
- attend an educational talk;
- visit an educational website.
NTUC Income holds an educational talk every week. The topics include retirement plans, medical insurance, financial planning, reverse mortgage scheme, etc. Schedule of the talks can be found at www.income.coop/seminar. Admission to these talks is free.
We also manage an educational website at www.KnowYourInsurance.com.sg. It is available in English, Chinese and Malay versions. The website covers a wide range of insurance topics, such as: personal accident, medical insurance, financial planning, travel insurance and saving for education.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Zaobao
I refer to the letter, 'Annuity plans need improvements', by Mr Yang Song Jian, (Zaobao, 23 March).
Mr Yang asked insurance companies to improve the annuity plans to better take care of the elderly. More should be done educate Singaporeans on the importance of financial planning and savings.
I agree.
In a recent survey, we found out that 50 percent of the respondents wanted to increase their regular savings for their retirement. They know that their current savings in the Central Provident Fund is inadequate.
As a general guide, each person should set aside 10 to 15 percent of the regular earnings as savings for the future. They can use the savings for their retirement or to meet emergencies, in they lose their jobs or have to pay a large medical bill.
They should invest these savings in a flexible plan that can give an attractive rate of return, by investing for the long term.
NTUC Income offers a choice of attractive annuity plans. We handle 65 percent of all life annuities sold in Singapore. Our annuities offer an attractive return, an annual bonus (in most years) to supplement the guaranteed return, and a refund of the balance of the capital on death.
There are a few ways for the public to learn about financial planning:
- see an insurance adviser;
- attend an educational talk;
- visit an educational website.
NTUC Income holds an educational talk every week. The topics include retirement plans, medical insurance, financial planning, reverse mortgage scheme, etc. Schedule of the talks can be found at www.income.coop/seminar. Admission to these talks is free.
We also manage an educational website at www.KnowYourInsurance.com.sg. It is available in English, Chinese and Malay versions. The website covers a wide range of insurance topics, such as: personal accident, medical insurance, financial planning, travel insurance and saving for education.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Tuesday, March 21, 2006
Pensioners lost money on their investments ?
Recently, I saw a news article with this headline. It refers to another country. This can be a frightening prospect.
Here are some suggestions on how to invest your retirement money and not face the same risk:
- invest for the long term
- invest in a professionally managed and well diversified fund
It does not matter that the value of the investments can go up or down. They do not concern you. If you are investing for the long term in equities, you should get a better return compared to bonds.
Based on past record, the average return over 10 or 20 years is likely to be 6% to 9%.
The combined fund from NTUC Income is structured to give a good return, with little risk. In fact, risk can be turned to an advantage.
If are keen to learn more, you can call us to attend an educational talk.
Here are some suggestions on how to invest your retirement money and not face the same risk:
- invest for the long term
- invest in a professionally managed and well diversified fund
It does not matter that the value of the investments can go up or down. They do not concern you. If you are investing for the long term in equities, you should get a better return compared to bonds.
Based on past record, the average return over 10 or 20 years is likely to be 6% to 9%.
The combined fund from NTUC Income is structured to give a good return, with little risk. In fact, risk can be turned to an advantage.
If are keen to learn more, you can call us to attend an educational talk.
Monday, March 20, 2006
Participating or adjustible annuity?
NTUC Income holds a 60% market share in life annuity. Our key product is the participating annuity.
PARTICIPATING ANNUITY
A male annuitant investing $100,000 at age 62 in a immediate life annuity (with no
capital refund) receives $524 per month.
This represents a payout of 6.3% per annum, comparising of a guaranteed return of 2.5% with the balance being a consumption of the capital.
If we earn a net investment return over 2.5%, we will add a bonus to the annuity. We expect an average bonus of 2.5% per annum over the future years, but this is not guaranteed.
If the annuitant wish to have a refund of the balance of capital on death, the annuity payment reduces to $446 per month (ie 5.3% p.a).
ADJUSTIBLE ANNUITY
Some annuitants prefer to have a larger payout, instead of an increasing payout.
We are considering to offer an adjustible annuity that comprise of a guaranteed amount of $524 per month, plus an non-guaranteed amount of $136, making a total payment of $660 per month. The annual payout is 7.9%
The non-guaranteed amount may be adjusted up or down, according to our investment return. If the net investment return is 5%, the amount will not be changed. If it is higher, the non-guaratneed amount will be increased. If it is lower, the amount will be reduced. Any adjustment is expected to be in small gradual steps.
The guaranteed amount will always be payable.
We may offer the option of the adjustible annuity, if there is interest in this product.
If the annuitant wish to have a refund of the balance of capital on death, the annuity payment reduces to $602 per month (ie 7.2% p.a).
PARTICIPATING ANNUITY
A male annuitant investing $100,000 at age 62 in a immediate life annuity (with no
capital refund) receives $524 per month.
This represents a payout of 6.3% per annum, comparising of a guaranteed return of 2.5% with the balance being a consumption of the capital.
If we earn a net investment return over 2.5%, we will add a bonus to the annuity. We expect an average bonus of 2.5% per annum over the future years, but this is not guaranteed.
If the annuitant wish to have a refund of the balance of capital on death, the annuity payment reduces to $446 per month (ie 5.3% p.a).
ADJUSTIBLE ANNUITY
Some annuitants prefer to have a larger payout, instead of an increasing payout.
We are considering to offer an adjustible annuity that comprise of a guaranteed amount of $524 per month, plus an non-guaranteed amount of $136, making a total payment of $660 per month. The annual payout is 7.9%
The non-guaranteed amount may be adjusted up or down, according to our investment return. If the net investment return is 5%, the amount will not be changed. If it is higher, the non-guaratneed amount will be increased. If it is lower, the amount will be reduced. Any adjustment is expected to be in small gradual steps.
The guaranteed amount will always be payable.
We may offer the option of the adjustible annuity, if there is interest in this product.
If the annuitant wish to have a refund of the balance of capital on death, the annuity payment reduces to $602 per month (ie 7.2% p.a).
Sunday, March 19, 2006
Why NTUC Income supports Idac
19 March 2006
Editor
Forum Page
Straits Times
I refer to the report entitled "Only 11 insurers left on Idac accident scheme" (St Times, 18 March).
The report covered the reasons why several insurers left the Idac scheme. I wish to tell the other side of the story - why NTUC Income choose to remain in the scheme.
Each day, about 60 of our policyholders and 30 third party claimants reported their accidents to an Idac center.
It is easy for claimants to visit any of 12 Idac centers located in various parts of Singapore. They can get the address by calling 6788 6616.
The accident report and damage assessment is usually completed within 20 minutes. There is no undue delay and hassle.
Most policyholders are willing to leave their vehicles at the Idac center for the repairs to be arranged by us. The repairs are usually completed within five days. If they are covered under our Quality Plus plan, we provide a courtesy car for their use.
We carry out an inspection of the vehicle after the repair, to ensure that the repair is carried out to a satisfactory standard. We also provide six month warranty on the repair.
If the policyholder prefers his regular workshop to repair the vehicle, we offer a cash settlement based on our best estimate of the repair cost. Less than 5% of policyholder choose this option.
We carry out a survey of our policyholders after the repair. We have consistently obtained high scores:
- 98% are satisfied with the service provided by Idac center
- 96% are satisfied with the quality of the repair
We have a small percentage of disputes, usually not involving Idac services. They involve the determination of the party responsible for the accident, potential loss of no-claim discount, and replacement of "wear and tear" parts. We try our best to resolve these disputes.
By using the Idac scheme, we are able to reduce our repair bill by about 15%, representing about 6% of total claims. We pass the saving to our policyholders through lower premium. We are able to offer premium rates that are 10% to 15% lower than the market.
Your report alleged that "Idac was feeding a top insurer early information about cases". This is an unfair statement. I wish to give our perspective.
The Idac scheme allows for immediate reporting of all cases into a centralised computer system. We use this information to contact third party claimants and make direct settlement with them. This helps us to reduce the cost of third party claims. We believe that this information is available to any other insurers, if they choose to use it pro-actively.
Finally, I wish to state that NTUC Income has a sufficient volume of business to start an assessment system on our own. We have decided to support an industry wide scheme, as it is the best way to overcome the inflated repair bills that have troubled the insurance industry in many countries over the past decades.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Forum Page
Straits Times
I refer to the report entitled "Only 11 insurers left on Idac accident scheme" (St Times, 18 March).
The report covered the reasons why several insurers left the Idac scheme. I wish to tell the other side of the story - why NTUC Income choose to remain in the scheme.
Each day, about 60 of our policyholders and 30 third party claimants reported their accidents to an Idac center.
It is easy for claimants to visit any of 12 Idac centers located in various parts of Singapore. They can get the address by calling 6788 6616.
The accident report and damage assessment is usually completed within 20 minutes. There is no undue delay and hassle.
Most policyholders are willing to leave their vehicles at the Idac center for the repairs to be arranged by us. The repairs are usually completed within five days. If they are covered under our Quality Plus plan, we provide a courtesy car for their use.
We carry out an inspection of the vehicle after the repair, to ensure that the repair is carried out to a satisfactory standard. We also provide six month warranty on the repair.
If the policyholder prefers his regular workshop to repair the vehicle, we offer a cash settlement based on our best estimate of the repair cost. Less than 5% of policyholder choose this option.
We carry out a survey of our policyholders after the repair. We have consistently obtained high scores:
- 98% are satisfied with the service provided by Idac center
- 96% are satisfied with the quality of the repair
We have a small percentage of disputes, usually not involving Idac services. They involve the determination of the party responsible for the accident, potential loss of no-claim discount, and replacement of "wear and tear" parts. We try our best to resolve these disputes.
By using the Idac scheme, we are able to reduce our repair bill by about 15%, representing about 6% of total claims. We pass the saving to our policyholders through lower premium. We are able to offer premium rates that are 10% to 15% lower than the market.
Your report alleged that "Idac was feeding a top insurer early information about cases". This is an unfair statement. I wish to give our perspective.
The Idac scheme allows for immediate reporting of all cases into a centralised computer system. We use this information to contact third party claimants and make direct settlement with them. This helps us to reduce the cost of third party claims. We believe that this information is available to any other insurers, if they choose to use it pro-actively.
Finally, I wish to state that NTUC Income has a sufficient volume of business to start an assessment system on our own. We have decided to support an industry wide scheme, as it is the best way to overcome the inflated repair bills that have troubled the insurance industry in many countries over the past decades.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Friday, March 17, 2006
How to pass your wealth to your children
The baby boomer generation, who are now in their 50s and 60s, benefitted from the economic growth and are generally quite wealthy.
Some of them are thinking of how best to transfer a portion of their wealth to their children.
I suggest that they should make a partial transfer now, when their children are in their 20s. The children need the mney now, rather than 20 years later (when their parents pass away).
NTUC Income will organise seminars to cover will writing, annuity plan, term annuity, trust, estate duty and similar topics.
More details will be announced later.
Some of them are thinking of how best to transfer a portion of their wealth to their children.
I suggest that they should make a partial transfer now, when their children are in their 20s. The children need the mney now, rather than 20 years later (when their parents pass away).
NTUC Income will organise seminars to cover will writing, annuity plan, term annuity, trust, estate duty and similar topics.
More details will be announced later.
Preferred policyholder
NTUC Income plans to register a "preferred policyholder". They will be allowed to have a loan in the future (for car, house, and other purpose) at a preferential interest rate and more attractive terms.
This will be specially useful for young policyholders. The saving on interest can amount to a lot of money.
We will communicate to our policyholders soon.
This will be specially useful for young policyholders. The saving on interest can amount to a lot of money.
We will communicate to our policyholders soon.
High cost of living
I read a news report that young people find the cost of living to be high in Singapore.
I agree.
When I was young, the HDB flats and shops were at a subsidisied and controlled price. This helps to keep the cost of living low, and make Singapore competitive.
During the late 1980s, the HDB flats were allowed to appreciate to the "market price". This benefitted the HDB flat owners, but increased the cost of living for the next generation.
Looking back, it would have been better for Singapore, if HDB flats had been kept at the controlled prices. But, it is too late to turn back the clock.
At the current high prices, property will be just like any other investment. One has to think carefully before investing in property. Is the price right?
For some people, it may be better to rent a property. The rental may be lower than the cost of owning the property.
The capital sum can be invested in other means, eg in unit trusts or the combined fund from NTUC Income. These investments may give a better return in the long run.
Get advice. Make the right choice.
I agree.
When I was young, the HDB flats and shops were at a subsidisied and controlled price. This helps to keep the cost of living low, and make Singapore competitive.
During the late 1980s, the HDB flats were allowed to appreciate to the "market price". This benefitted the HDB flat owners, but increased the cost of living for the next generation.
Looking back, it would have been better for Singapore, if HDB flats had been kept at the controlled prices. But, it is too late to turn back the clock.
At the current high prices, property will be just like any other investment. One has to think carefully before investing in property. Is the price right?
For some people, it may be better to rent a property. The rental may be lower than the cost of owning the property.
The capital sum can be invested in other means, eg in unit trusts or the combined fund from NTUC Income. These investments may give a better return in the long run.
Get advice. Make the right choice.
Thursday, March 16, 2006
Incomeshield Unlimited
Someone suggested that we should call our medical plan as "Incomeshield Unlimited".
This plan now provides unlimited lifetime coverage. The total claimable amount is subject to certain specific and annual limits, but is unlimited in the amount that can be claimed during a lifetime.
Our coverage is better than the $5,100,000 limit that is advertised by another medical plan (which charge much higher premium than Incomeshield).
This plan now provides unlimited lifetime coverage. The total claimable amount is subject to certain specific and annual limits, but is unlimited in the amount that can be claimed during a lifetime.
Our coverage is better than the $5,100,000 limit that is advertised by another medical plan (which charge much higher premium than Incomeshield).
Logic9 National Competition
Here is an interesting competition to find the faster players to solve the Logic9 (Sudoku) puzzle. Registration is free.
Click on the following link to get details of the competition and to register
http://www.logic9.com.sg.
You have a chance to win up to 36,000 worth of prizes. The top prize for each age group is an IBM Thinkpad notebook worth $4,000.
You stand a better chance of winning, if you practice for this competition. You can buy a Logic9 CD or booklet for $5 only at selected NTUC Fairprice supermarkets.
Click on the following link to get details of the competition and to register
http://www.logic9.com.sg.
You have a chance to win up to 36,000 worth of prizes. The top prize for each age group is an IBM Thinkpad notebook worth $4,000.
You stand a better chance of winning, if you practice for this competition. You can buy a Logic9 CD or booklet for $5 only at selected NTUC Fairprice supermarkets.
Tuesday, March 14, 2006
Growth plan gives a fairly attractive return
A policyholder invested $50,000 in a Growth plan in 2001. It matured 5 years later with a maturity value of $58,000.
The policyholder earned a net return of 3.1% over the past 5 years on the Growth policy.
As the Growth policy has to be invested mostly in short term secure bonds, the return of 3.1% is quite attractive. During the past five years, Government bonds provide a return of around 3%.
Apart from giving a fairly good return, our Growth plan also give life insurance cover, which is built into the contract and not charged separately.
Our aim is to invest the funds prudently, get a fairly attractive return, and return most of the return to our policyholders.
Here is the good news for our policyholders of our Growth plan. The bonus rate has been increased recently. We expect to give better than 3.1% return in future years, based on the higher bonus rates. For a Growth plan that is invested for more than 10 years, the return should be higher than 4% per annum, based on our current bonus rates.
The policyholder earned a net return of 3.1% over the past 5 years on the Growth policy.
As the Growth policy has to be invested mostly in short term secure bonds, the return of 3.1% is quite attractive. During the past five years, Government bonds provide a return of around 3%.
Apart from giving a fairly good return, our Growth plan also give life insurance cover, which is built into the contract and not charged separately.
Our aim is to invest the funds prudently, get a fairly attractive return, and return most of the return to our policyholders.
Here is the good news for our policyholders of our Growth plan. The bonus rate has been increased recently. We expect to give better than 3.1% return in future years, based on the higher bonus rates. For a Growth plan that is invested for more than 10 years, the return should be higher than 4% per annum, based on our current bonus rates.
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