Saturday, May 28, 2005

Visit Batam for Tranquility

I attended a retreat at Batam View.

On my return, I waited at the ferry terminal. It was slow pace, tranquil and peaceful.

I enjoy the cool breeze, and the rustling of the leaves on the trees. A few people were at the terminal, including the employees and shop attendants. It was a calm.

I will like to visit again, especially during the weekdays, when there is no crowd.

Financial Tips - do not roll over your credit card

Excessive spending on credit is the No 1 cause of bankrupcy in Singapore.

4 in 5 young people roll over their credits monthly, and pay interest of up to 24% per year. If late payment and other charges are added, they may be paying up to 30%.
For a credit of $5,000, the charges can be as high as $1,500.

There is a better way. Take a loan from the cash value of your policy, and pay interest at only 5.5% per year. You can save up to $1,200 on a credit of $5,000.

Call 6788 1122

Tuesday, May 24, 2005

Lower Charge on our Investment Plan

The Straits Times printed a table to show the allocation on investment linked plans offered by various life insurers.

In the case of NTUC Income, our allocation is 85% for the first 3 years, and 100% thereafter. This means that the total charge is 45%. If you invest $1,200 per year, your total charge is $540. This goes to pay the insurance adviser and covers the expenses of issuing the policy.

Some other insurers have total charge of 100% to 150% of the premium. For an annual premium of $1,200, the charge is $1,200 to $1,800. This is much higher than NTUC Income.

Another difference is the spread on the investment. In NTUC Income's case, the spread is 3.5%. For most other insurers, the spread is 5%. A lower spread means that a larger proportion of the premium is invested.

In brief, the charges imposed by NTUC Income are quite modest. They are more than offset by the higher return earned from investing in our Combined Fund.

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