Saturday, November 26, 2016

How a life annuity works

I have added a new video to explain how an annuity works and to show the difference between a fixed term annuity, life annuity and guaranteed life annuity.

Friday, November 25, 2016

Difficult to understand the medical terms used in critical illness cover

Mr. Tan,
I tried to read my critical illness policy document. There are a few pages description the 30 plus illnesses. But I don't know how to read the medical terms. Even the common illness such as cancer, heart attack and stroke cannot be understood. Can I get some clarification from you?

I can't understand the terms as well. It is best to leave the interpretation to the doctor.
Basically, the medical condition has to meet certain tests before it can qualify as a claim.
If you wish to understand the non-medical aspects of critical illness, you can watch the video that is available at

You will be shocked

You will be shocked at some of the bad terms and conditions in the life insurance policy that you have bought. You can view these articles in Look for this icon.

Will Tharman be a good prime minister for Singapore?

We know that he does not want to have this job. But what do the "wisdom of the crowd" think? you can view the results of the voting in

You can also vote for the current issues by clicking the "Vote" tab;.

Will Donald Trump make a good President? Be surprised about the result of the voting by Singaporeans!

After Donald Trump was elected President of the United States, I posed the question - "Will Donald Trump make a good President?".

The voting has now closed and the results are avaialble. Be prepared for some surprise. Is the answer "Yes" or "No" or "Maybe" ?

You can view the result of the voting on this issue, as seen by Singapore residents, at You can also the results of the voting on other issues.

Click on "Vote" to give you votes on the pending issues. We need more votes to make the result more credible.

Insurance company increases the minimum monthly premium

A policyholder bought an investment linked policy that required him to contribute $833 a month for 3 years and to reduce the premium to $250 a month afterwards. After one year, he received a letter from the insurance company informing him that the minimum premium after 3 years has been increased to $500 a month. There was a term in the policy contract that allowed the insurance company to set the minimum and maximum premium under the policy from time to time.

Nevertheless, the policyholder felt that the increase in monthly premium was unfair. He asked me if he should terminate the policy or if he could lodge a complaint about this increase in minimum monthly premium. He did not want to have to save $500 a month for the next 30 years.

He would have to suffer a large loss if he terminates the policy now.

What is the name of the policy? You can find the answer in

Thursday, November 24, 2016

Premium for motor insurance

Mr. Tan,
Car prices have dropped due to lower COE. Will the motor insurance premium also drop?

The motor insurance premium does not depend on the price of the car. It depends on many factors affecting the type of cover, the type of vehicle, driving experience of the owner, etc.

This is explained in the video here:

Insuring against evacuation

Someone told me that she like travel insurance and had made a few claims. When I asked, she told me that the claims were quite small. She did not know how many times she had bought the travel insurance. I thought that it is probably not worth the trouble to buy this insurance and to take the trouble of making small claims.

She asked - what about evacuation. I told here that this is a rare occurrence. Even if there is a serious accident, the patient can fly back on scheduled flights or be treated overseas.

This video shows a better way to cover your risk when you travel overseas.

Wednesday, November 23, 2016

Add your voice

You can view the results of the issues voted recently here:

You can also add your vote to the current issues. Please play your part to add to our collective voice. If we can get 50 or more votes on each issue, the results will be more credible. We need everyone to play a part.

Tuesday, November 22, 2016

Investing in a property for rental can be risky

Many people have accumulated substantial savings and are thinking of using it as a down payment to buy a property to be rented out.

They can take a loan from a bank for 80% of the purchase price and plan to pay the mortgage using the rental income. They are not aware of the high risk of this method of investing.

This is explained in the short video on investing in a property for rental.

A life insurance policy is not a saving account

A common mistake made by consumers is to invest in a life insurance policy as a saving plan, thinking that it operates like a saving account.

The agent usually sells a life insurance policy to the consumer by pitching it as a saving plan that gives a better return compared to the low rate of interest that can be earned on a saving account or on a fixed deposit.

The agent tell the consumer that they can get their money back at any time after two years. The consumer thinks that he or she will get back all of the money back, like a saving account. That is not true.

Find out more at

Add your voice to these issues

We need you to vote on these issues concerning Singapore so that the results will be more credible. The voting will close after 14 days and you will be reminded to view the results. After you have voted the first time, the voting for subsequent issues will be quite straight forward. Come forward and exercise your vote, and give your voice to these issues.

Monday, November 21, 2016

Invest in a property at a discount

I have been approached on several occasions for my views on buying a property to be rented out. The investor wants to borrow 80% and use the rental income for the mortgage payment. They did their calculations and are convinced that it is a good way to make a large capital gain. They are tempted by a property that has dropped by 10% to 15% from its peak.

I give my views in this video

View of Singapore on a bus

You can see a beautiful view of the roads in Singapore by sitting on the upper deck of a bus. You see green trees, clean roads, nice houses and orderly traffic. Watch the short videos here and see if you agree with my statement.

Buy travel insurance?

Many people automatically buy a travel insurance policy when they travel. They may not realize that there is a better approach and that the travel insurance policy is not necessary. This is explained in an article here:

Invest in a property to be rented out

I have added a new video showing the points that you have to consider when you buy a property to be rented out. Some investors may wish to take advantage of the current correction in property prices to make this investment.

Sunday, November 20, 2016

Low mileage plan

If you have a car that is used mainly for weekends and the occasional evenings, or to be used mainly by the home maker, you can save on your insurance premium by opting for the low mileage plan offered by some insurers. Learn about it in the short video here:

Take advantage of drop in property prices?

Property prices have dropped. Some investors who bought condos for investment have sold their condos at a loss. Others are willing to take a loss also. There are opportunities available for home owners and new investors.

Should you buy these resale units at a price lower than the original selling price.

Before you take the plunge, you should learn the fundamentals about investing in property or home ownership.

Watch this short video in

Beware of "as charged" plans

An integrated shield plans that offer "as charged" coverage, such as the enhanced Incomeshield plan from NTUC Income, looks good. The insured does not have to worry about the "inner limits" for their hospital stay. These inner limits are set for each type of treatment.

They only have to pay the co-payment (comprising of the deductible and co-insurance), which can be paid from Medisave savings.

However, they are not aware about the long term impact of the "as charged" plans. You can read about it at

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