Some consumers approached an agent to buy Term insurance. The agent quoted a Term insurance premium that is more than twice what it available in the market. The agent pointed out that it is too much money to pay for the Term insurance, and sell a Whole Life, Critical Illness or Investment Linked policy instead.
This is misleading and bad advice. But it is used by the agent to get customers to buy a high cost product.
If you wish to buy Term insurance, you have to approach several insurance companies directly and get a quotation from them. Look for a Term insurance policy to cover 25 years or to cease at age 60. Do not go beyond this age, as the premium rate will be too high and the insurance is not necessary (after your children have grown up and you have sufficient savings).
Tan Kin Lian
Thursday, October 1, 2009
US economy is still struggling
Quote
Oct. 1 (Bloomberg) -- U.S. stocks fell the most in three months as Treasuries and the dollar rallied after a decline in a gauge of manufacturing and an increase in jobless claims spurred concern over the strength of a recovery from the recession.
Unquote
Several economists have expressed the worry that the current recovery is due to the government stimulus. After the stimulus is spent, the economy will face the same difficulty as before - reduced consumer spending and confidence.
The underlying problems of the free market economic system has not been solved - high unemployment, extreme disparity of income, high dependence on mis-priced leverage, bubble in asset prices.
Interest rate is now too low, due to the infusion of public money. When the infusion stops, interest rate will have to increase to a higher level, and that will also affect the stock and property markets.
My view: Do not rely on low interest rate for too long. Do not invest and lock up your money on low interest rate for a few years. Do not invest in property or stocks at inflated prices.
Tan Kin Lian
Oct. 1 (Bloomberg) -- U.S. stocks fell the most in three months as Treasuries and the dollar rallied after a decline in a gauge of manufacturing and an increase in jobless claims spurred concern over the strength of a recovery from the recession.
Unquote
Several economists have expressed the worry that the current recovery is due to the government stimulus. After the stimulus is spent, the economy will face the same difficulty as before - reduced consumer spending and confidence.
The underlying problems of the free market economic system has not been solved - high unemployment, extreme disparity of income, high dependence on mis-priced leverage, bubble in asset prices.
Interest rate is now too low, due to the infusion of public money. When the infusion stops, interest rate will have to increase to a higher level, and that will also affect the stock and property markets.
My view: Do not rely on low interest rate for too long. Do not invest and lock up your money on low interest rate for a few years. Do not invest in property or stocks at inflated prices.
Tan Kin Lian
Minibond holders may get back some money
Read this report in CNA.
There was no mention about how much the investors would get back and what is the estimated legal cost to unravel the structure. With the economic recovery, I hope that the value of the underlying assets would have improved and gave a high rate of return to the investors. We will have to wait and see.
Waste in health care
In health care, doctors and hospitals make more profit by being less efficient, according to this report.
Swiss health care system
This report describes the Swiss health care system, which is highly rated for delivering good outcomes.
Book: Bad experience on financial products
Someone suggested that I compile a book to show the bad experience on financial products. This has to be contributed by many individuals in Singapore.
If you wish to share your story, please write it below. I need you name, telephone and e-mail to contact you for verification, but your personal identity will not be disclosed in the book.
I will also edit your story - so you do not need to worry about your writing. If there is sufficient stories of interest to others, I will publish it in soft copy.
If you wish to share your story, please write it below. I need you name, telephone and e-mail to contact you for verification, but your personal identity will not be disclosed in the book.
I will also edit your story - so you do not need to worry about your writing. If there is sufficient stories of interest to others, I will publish it in soft copy.
Click here to share your personal story.
Talk on solving puzzles
I gave a talk on solving puzzles to 40 people at the Thomson Community Club. It covered Shape Quiz, Sudoku and Intelligence Quiz. The participants enjoyed the talk and bought 60 books of different titles. Many bought the shape quiz pieces to organise competition among their grand children. The books can be bought here.
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