Wednesday, October 26, 2016

Bukit Panjang LRT system

Should the Bukit Panjang LRT system be decommissioned, as it was costly to maintain?

You can view the results of 39 people who voted on this issue, and see their individual comments here:

Financial products sold by banks

I have come across many cases of risk averse people actually end up making bad investments unknowingly. This mistake was made in a safe place, i.e. a bank. They wanted to place a fixed deposit but ended up making a bad investment. It is easy to fall into this mistake. I know, because I had a similar experience in a bank.

Learn how to avoid this mistake. Watch the video on Financial Products offered by Banks.

Tuesday, October 25, 2016

Medishield Life

I keep getting questions for the public - I am a young person. Should I stay on Medishield Life or move to an integrated shield plan?

The answer is - it depends on you. You can find out the facts and make your own judgement. I have given some tips in my video here:

Changes to the constitution on the Elected President

Did the PAP government proposed the changes to the constitution for the main purpose of excluding Dr. Tan Cheng Bock from contesting in the next election?

The voting has now closed and the results can be viewed at

You can also view the results of the voting on two other issues relating to the presidential election;

a) ensuring minority representation
b) higher requirements for eligibility.

You should pay attention to the difference in voting between the younger generation, the middle generation and the older generation. These differences are startling.

Pursue the right economic policies…/we-are-pursu…/3231354.html…

Lee HL has been pursuing the "right strategy" for the past decade. It has led to
a) A large increase in population
b) Over crowding
c) Inadequate infrastructure and public services.
d) High cost of living
e) Unproductive work and wastefulness.
f) An uncompetitive economy

I don't think he has recognized the problems caused by his "right policies". I wonder how these same policies can make us competitive again.

Continue an existing life insurance policy?

A consumer should avoid locking up long term savings in a life insurance policy that gives a poor return. They should look for a return of at least 4% p.a. on a long term investment. The benefit illustration for most policies taken today shows a return of less than 3% if the policy is kept to maturity. It is usually negative when the policy is terminated during the first 10 years.

If you are already stuck in a life insurance policy that has been giving a poor return in the past, it may still be worth keeping the policy until maturity. Why? The "going forward" yield may be more than 4%.

Read a real case study here:

An excellent hotel in Saville, Spain

I checked in at the Melia Lebreros Hotel in Seville. I congratulate their management for exercising common sense, which leads to highly productivity and excellent customer service.

My tour group comprised of over 40 people. We were checked into the hotel with no hassle and quite quickly.

They do not require to scan the passports of the hotel guests. Most hotels around the world still carry out this unproductive exercise. What is the purpose, other than to give unnecessary hassle and work?

Quite likely, there is an outdated regulation that compels hotels to do this mindless activity. But the management of this hotel must have found a way to avoid it.

I connected to the hotel wifi and found, to my surprise and delight, that no password is required. They save a lot of their staff time in providing the password and in helping guests to get connected. All of this unproductive work is avoided.

What is the risk? Will some unauthorised person tap into the wifi of the hotel? They have to get into the guest rooms or corridors in the upper floors. Only those with key cards could access these places anyway.

I salute the management of this hotel. I hope that our hotels in Singapore can learn from them to be improve staff productivity and provide excellent service to their guests.

Sunday, October 23, 2016

Terrible experience with Ryanair

I took Ryanair from London to Spain. It was the worst check-in experience in a few decades of flying.

I did not check in online. Usually, I check in at the counter in the airport.

They required me to go to customer service, where the staff is very slow. He told me that I have to pay GBP 90 for failing to check in online for two persons. He said that this was stated in the website.

I had no choice but to give in to this kind of extortion. I consider the penalty to be excessive. I wonder why the British regulator allows this kind of deplorable business practice.

After spending nearly an hour on this process, I had to check in my bags. There was a long queue.

Many of the passengers had various kinds of problems with the check-in process. They were travelling with young children. Maybe they were also not familiar with the unusual check-in process.

I will never take Ryanair again.

Saturday, October 22, 2016

Deducting premium from wrong GIRO account

An insurance company had been deducting the premium from the GIRO account belonging to another policyholder. The company discovered the mistake after 8 years and informed the account owner.

The account owner asked for compensation for the wrongful deduction. After a delay, the insurance company calculated the interest based on the average fixed deposit rate of 1.2% p.a.

The account owner had been paying interest at 5.5% on a loan taken from his own policy. He asked for the interest to be computed at 5.5%.

My comments:

a) The request for the interest to be computed at 5.5% is fair.
b) It is important for the account holder to check the GIRO deduction regularly to spot this kind of mistake.

Friday, October 21, 2016

Your voice matters - use it

Here are the topical issues available for your voting. When you vote, you will receive an email to view the results when the voting closes after 14 days. You only need to click on the Facebook or Google logo to register. After that, you can vote immediately. It takes less than 10 minutes.

Thursday, October 20, 2016

How to draw the bus route

First, I need to have the data of the bus services and the bus stops in sequence. This data is provided by the Land Transport Authority. But the data comes in a complicated format. I have to write a script to extract the data that I needed in a form that is easy to use.

Second, I have to write a stored procedure to display the bus stops (and the GPS locations of the bus stops) in the sequence for each bus service. The GPS locations for each stop are obtained from another table.

Third, I have to write a webpage that display the data from Google Map. It also uses the Google API to plot the route of the bus by joining all the stops using the GPS location. This API has a function called "snap to road". It will attempt to draw the route to follow the road. It works most of the time, but does not work well when the bus stops are far apart.

Here is the map of the route for a few services. They are quite attractive.

Bus Route

You can have a quite look at the route taken by a bus service at this website. Here is an example of the route for bus 130. You can also see the actual stops on another tab. This can also be viewed on your mobile phone.

Voting Slip

Here is an example of a voting slip. You only need to click "For" or "Against". It is quite easy.
You can give your vote at

Sign in to vote in the Wisdom website

Mr. Tan
Why do I need to sign in to vote for the issues in your wisdom website? Can I be anonymous?

I only capture your name and email.
I wish to prevent some people from voting many times.
I also want to send the e-book prize to those who have voted 5 times or more.
I also need to know your age band, gender and citizenship to analyze the results.

You only need to register once. I capture only your name and email. Many people don't mind. This website is similar to many other websites.

Self driving bus at NTU campus

I read a news article that Nanyang Technological University is testing the self driving bus.  I was surprised at this approach.

If NTU wants to be "driverless" they could have introduced a tram system or a LRT system using tracks. The tracked approach is more suitable for fixed routes.

They do not need the technology of the "self driving car" to provide a public transport service within its compound.

Sometimes, I wonder, if people think?

Causing trouble unnecessarily - NTUC Income website

I logged into NTUC Income website to check my insurance policies. It asked me to change my password. It told me that I would receive an email within 2 minutes. It apologied for the delay during "peak hours". It never came after 10 minutes. It was not peak hours. It was 7 am in the morning.

Now NTUC Income is following the crowd to do stupid things. Why force its customer to change the password? Why have a buggy website that does not send out the email immediately?

What is the harm of keeping the old password? I hardly use it. It only provided information - which I do not consider to be important. If I did, I would have changed the password regularly on my own, without being forced to do so.

By introducing this "security feature", it is causing me to give up on accessing the website.

Diversification of the index fund

The shipyards in Singapore are going through a difficult time. The shipping lines are similarly affected. The shares of companies in these sectors have dropped a lot. But the Straits Times Index is still holding above 2800.

This is the power of diversification of the index fund. While some shares perform badly, the other shares are doing well. The index fund is still showing an overall gain.

Learn about investing in the index fund, namely the STI ETF, in this short video.

Wednesday, October 19, 2016

A new future for central planning

Central planning failed in the past. The communist countries tried it and it produced dismal results.

After the collapse of central planning, we have nearly three decades of market economy. It has produced good results, generally. But it has also produced bad results with the wide income gap, the disappearance of the middle class, stagnant incomes, insecure jobs and high unemployment (including part time employment).

It is time to consider central planning at the macro level and market economy at the micro level. How will this work?

The state can take first step. Using the available data and proper analysis, it can determine the number of positions required for each major job category. It can train the young people for these jobs and give them the licence for that job. This will virtually ensure the availability of a job as the demand is likely to match the supply.

The supply can be calibrated according to the market demand. If there is higher demand for the jobs a few years in the future, the training and supply can be increased. More licences can be issued.

The actual employment can be left to the market at the micro level. The state can also set the minimum wage for each job based on the skill that is expected. The employer can pay more than the minimum wage to attract the skill and experience that they need.

If there is a big supply of labor to meet a smaller demand, the state can pass a regulation to reduce the working hours in the week. This ensures that the available work is fairly distributed to the available workers.

Matching at the micro level can be done efficiently using the Internet. Information is available to workers and employers to make the matching and provide fair terms of employment.

I see the market-oriented central planning to be a solution for the future. It combines the advantages of both systems. There will be problems that need to be addressed in this new system, but they can be addressed when they arise.

Vote and win a prize

Here are 12 issues that you can vote on. Just click on the Facebook or Google logo, provide three data for analysis and give your vote. It is so easy. Takes less than 10 minutes. And you will get a prize.

10 short videos on financial planning and insurance

I have produced 10 videos covering different topics on financial planning and insurance. Most of these videos are from 5 to 10 minutes. They are short and give the key and relevant points. You can watch them here:

Buy the right type of critical illness policy

Many people are convinced that they should buy a critical illness policy to provide funds for treatment of cancer or heart attack. They need to buy the right type of policy that does not take too much money from them. This is explained in the video

Renewabable energy for Singapore's future

Should Singapore invest in solar panels? Do we have enough space to catch the sunlight? Will the rooftop of HDB flats be enough?

How about building a covered walkway all over the place, with the roof being covered by solar panels? This will give shade to the people and cyclist walking below.

How about building a large roof over a park or field and put solar panels on the roof. This means that we cannot have trees or grass growing under the roof.

We should be planning for a future that is powered by renewable energy, instead of fossil fuel energy. The oil and gas sector will become less important in the future.

I am quite disappointed that Singapore is not even mentioned in this Wikipedia article.

Tuesday, October 18, 2016

Bus routes from Ang Mo Kio MRT station

Here are the bus services starting from Ang Mo Kio MRT station  - 132, 165, 25, 261 268, 73, 74, 76 and 88. They are shown in different colors. 
You can draw a similar map at

Motor policy - does it cover the accident

Many car owners do not pay attention to their motor policy until an accident happens. They stand the following risks:

a) The driver is not covered by the policy
b) The peril is not covered.
c) Should they make a third party claim?
d) A third party has claimed against them.

This video explains the coverage and how to deal with a claim.

Invest in a property

I have uploaded a video to give consumers about investing in a property in Singapore.

Invest in ETF or REIT?

Mr. Tan
I would like to enjoy better returns from my investments instead of parking the money in the local banks as FD rates has come down .

I am considering buying 10 lots of STI ETF Or Suntec REITs. They both pay handsome dividends for the past years. What is your advice and preferences bet the 2 choices?

The answer can be found here:

Monday, October 17, 2016

Bus routes

This website shows the route taken by a bus service. Enter the bus service and the route is displayed as a line from the starting point to the ending point.

You can plot several routes in different colors.

Rise of China and engineering expertise

The rise of China should give a warning to America. China has developed expertise in engineering, high speed train, manufacturing, innovation and entertainment.

During the initial stage of its industrialisation, it depended on American manufacturing expertise. China has gone beyond that stage. It is now able to innovate and create its own products and brands.

America used its talents on financial engineering. This is just gambling and ripping off unwary investors. They do not create any value.

The jobs in America have gone to China and other countries where the people are willing to work hard to produce things.

Singapore should also learn the lesson of the decline of America. Like America, we have also been using our talents on financial services, financial engineering and wealth management. We should now move to non-financial services.

Yield on Life Insurance Policies

A policyholder of NTUC Income took two policies 30 and 22 years ago. He has now stopped working and asked me if he should continue these two policies. He does not need the life insurance cover any more, as he has provided adequately for his wife and children.

I asked me to get the benefit illustration for these two policies. I take the cash value now, the premium payable for the next four years and the projected cash value after another four years. The yields on these two policies were 5% per annum.

If he is able to continue paying the premium, he should continue the policies for the next four years to enjoy an attractive yield of 5% and "free" life insurance cover.

Lesson: Do a forward projection of the yield on your life insurance policy to decide whether to continue to termination the policy.

I also calculated the yield for these two policies to be 4.5% p.a. and 3.8% p.a. respectively. These two policies also provided substantial life insurance cover during the past years. He was able to enjoy a good yield and "free" life insurance cover.

I have seen the benefit illustration for several types of policies that are sold by NTUC Income today. The yield are much lower that the yields in the past.

Lesson: What was good in the past may not be good in the future. It depends on the situation from time to time. Study the benefit illustration and understand it. It will allow you to make an informed decision.

It is better for policyholders to invest in the index fund (STI ETF) to get a much higher return. They can buy term insurance to provide the life insurance protection.

Vote and view the results

Here are the issues that are available for voting by the "crowd", i.e. the ordinary people. They include the performance of several ministers in the news lately.

You can give your vote here:

This is easy and should take you less than 10 minutes. You will receive a prize - "Financial Planning for Young People".

When the voting closes after 14 days, you will receive an email to view the results.

Sunday, October 16, 2016

Ranked Voting System

Here are some views from experts on the ranked voting system. Each voter votes for the first and second choice. If their first choice candidate does not win a majority, the second choice candidate is taken into account.

Move back to Medishield Life

Someone said: When I signed the integrated plan, my intention was to ensure my medical bills are fully covered. I didn't think about going to ward A or ward B1. 

After my mother in law hospitalisation, her insurance paid so little after all the deductions that I realised its wasn't really worth it for the premiums paid. 

But since I'm on ISP for so many years, and now close to 65, I just continue with the plan, as I still don't really know exactly what to do.

It is easy for you to convert back to Medishield Life. Call the insurance company and ask them if they will give you a pro-rata refund for the premium that you have paid for the integrated plan. If they can, you can convert immediately. If no, you can convert to Medishield Life at the next renewal date. 

Increase in premium for integrated shield plans

Why are the premiums for the integrated shield plans going to increase significantly next year?

The main reason is that Medishield Life now covers people with pre-existing conditions. These people were excluded previously. They now contribute to more claims. Most of these claims should be covered by Medishield Life (i.e. CPF) and should NOT impact on the portion paid by the integrated plan (i.e the insurance company).

Apart from these claims, it is likely that the increase in premium for the integrated plan is caused by the higher charges from the private hospitals.

An industry expert told me that the "as charged" plans could be abused. The hospital or surgeon could find reason to inflate the bills and the integrated plan pays for the inflated bills. The insurance companies are now trying to establish benchmarks for the operations. I hope that they can find the right solution.

In the meantime, it is better for budget concious consumers to stay with Medishield Life. If they are insured under an integrated plan, the premium could be 2 to 4 times of Medishield Life. They will still pay to pay the Deductible and Co-insurance.

Learn more about making the right choice from my video,

Bad design for Medishield Life

Medishield Life is badly designed. It is extremely complicated. Here are the very bad features.

1. Look at the Deductible. It varies according to the size of the claimable amount.
2. Look at the Co-insurance. It varies according to the size of the claimable amount.
3. Look at the pro-ration factors. It varies according to a complicated table depending on the type of establishment and the type of treatment.
4. Look at the premium subsidy. It varies according to the family income level and age band.
5. Look at the premium rates for Medishield Life. I had a difficult time to look for it. I have to search many pages of the website.
6. Look at the integrated shield plans. There are many plans offered by each insurance company and there are many insurance companies offering these plans. Try to understand the difference in their plans. You need to be a rocket scientist.

Here are some simple facts that must have eluded the planners in Medishield Life.

7.  It covers B2 and C wards. At these wards, the government provides a subsidy of 50% to 80% of the hospital charges. Medishield Life covers a small bill after the subsidy. There is no need for any Deductible. If a Deductible has to be applied, a flat sum of $200 would be sufficient. Similarly, the co-payment could be kept at a flat rate of 10%. We are talking of relatively small bills.

8.  Similarly, the pro-ration factors can be simplified. We do not need a complicated table with so many variables.

The real challenge is in dealing with treatment in non-subsidized wards, i.e. B1 and A wards. The term "non-subsidized" is not a proper description. There is a small subsidy in B1 wards.

When you buy an integrated plan, or go to a non-subsidized wards, you are helping the government to reduce its subsidy. You get a ward with 4 instead of 6 patients and have the chance to choose your doctor.  In most cases, these differences do not really matter to the quality of the care. But you are paying a much bigger bill (due to lower government subsidy) and you have to pay a much higher premium (maybe 2 or 3 times) to cover this difference. Is this really necessary?

It is better for the government to address this anomaly in its subsidy structure. By keeping this anomoly, it is passing the complicated to the Medishield Life system.

Talk on Balanced Financial Health

I gave a talk on "Have a balanced financial health" on 15 October. Over 40 people attended. There was an active discussion. You can watch the video of this talk here.

Presidential election on November 8

I will watch the November 8 presidential election in America with great interest.

Hillary Clinton is ahead in the polls by about 5%. This is a commanding lead. Donald Trump is getting massive crowds in his rallies.

The size of the crowds in the rallies is an indication of enthusiasm and grassroots support. This will lead to a higher turnout on voting day. It will give an edge for Trump. Will it be decisive?

There is another advantage for Trump. The ordinary people are tired of the corrupt establishment and wants to see a change. They do not care about the reputation of Trump. This negative reputation is generated by the corrupt corporate media.

The Brexit referendum in the UK was unexpected. Will we see a similar outcome in America on November 8?

Friday, October 14, 2016

Confused with integrated shield plan

I picked up a call to my office

Voice: Mr. Tan, I am in my late 60s. I am insured under NTUC Medishield plan. Should I stay with this plan or not? I don't know what to do.

TKL: If you are well off, and money does not matter to you, you can stick with the integrated shield plan from NTUC or from any other company. But if money matters to you, then you should compare the premium rate charged by Medishield Life and the integrated shield plan. You should also find out what is the difference in cover from the plan.

Voice: I went to NTUC's office in Bras Basah Road. The counter staff was not able to explain the difference to me. They do not know their product well. I am confused. I also find the integrated shield plans from other insurance companies to be confusing. So, I am asking for your advice.

TKL: Sorry, I do not have the time to explain the difference to you. If you don't know what you are being covered for, you should move back to Medishield Life. I am covered under Medishield Life. It is all right for me. I pay a premium of $600. I understand that the premium for integrated shield plan is several times higher.

330 people have watched my educational videos

I have uploaded 9 videos on financial planning and insurance. They have been watched a total of 620 times or an average of 65 times for each video.

330 people have watched the videos. The average is 2 video per person. I hope that they will return to watch the other videos.

If you want to join this crowd, go to

I am now using login by Facebook or Google. I guess that most people would have 1 or both of these logins.

Increase in premium for integrated shield plans

A task force was formed to look into the increase in health insurance claims. It has recommended the following:

a) Do away with the rider that covers the deductible and co-insurance.
b) Set medical fee guidelines.

The task force also hinted that the premium for integrated plans will increase by 9% to 15% next year.

My advice to consumers is:
a) Do not buy the rider. It is too expensive and encourages escalation of hospital bills. Everybody pays.
b) Stick to Medishield Life. Do not buy the integrated shield plans.

You can watch my video at

Thursday, October 13, 2016

Vote and win!

Click in this link and vote "for" or "against" on the six issues presented to you one by one.
It should take you less than 10 minutes.
And you will win the e-book "Financial Planning for Young People".

Coverage for young drivers

If you have a son or daughter below 30 years who has just obtained a licence, check that your motor insurance policy cover them as a named driver.

Some insurance company excludes coverage for young driver below 30 years or with less than 2 years of driving experience, unless they are named in the policy as a named driver.

If they are not covered and an accident occurs, it can be very expensive for you. The young driver might get into trouble for driving with coverage.

Watch the video on motor insurance in

Premium for Medishield Life

You should compare the premium for your integrated plan with the premium under Medishield Life. Look at the premium not only for the current year, but for the rest of your life. Consider if you can afford to pay the higher premium for the integrated plan.

If not, it is wise to move back to Medishield Life. Here is the premium for Medishield Life.

Easier to submit your vote

I have created a new user interface which makes it easy for you to vote on these issues:

Are the proposed changes to the Elected President targeted at Dr. Tan Cheng Bock. Do you agree with the changes to ensure that each minority group can take turns to be the elected President?

Who will make a better President for USA - Clinton or Trump?

Is China bullying Singapore over the South China Sea issue?

Should the Bukit Panjang LRT system be taken down? Or will it be too wasteful?

Give your vote to this issue and win the popular e-book on Financial Planning.

Have a balanced financial health

I have created a 25 min video "Have a balanced financial health". It explains how you can prepare for retirement by investing your savings wisely and avoid losing them through scams or bad investments. You can watch the video here:

Rider to cover Deductible and Co-insurance

I advise consumers to avoid buying the rider to cover the Deductible and Co-insurance under an integrated shield plan. Here is my reason.

The average amount that you have to co-pay is $3,000. Let us assume that the chance of getting hospitalised for your age is 1 in 10 years. If you buy the rider, you probably have to pay $450 a year.

Over 10 years, you would have paid $4,500. You may have no claim during this period, so all the premium that you have paid goes to pay somebody's else claim.

You may have one claim during this period, which is most likely. You are still out of pocket by $1,500 having paid $4,500 to get back a compensation of $3,000.

You may have two claims during this period. So you claim back $6,000 and paid $4,500. You make a gain of $1,500. But the chance of this occurrence is 1 in 10.

You have a 90% chance of losing and a 10% chance of winning when you buy the rider.

If the cost of the rider is less than $450, it means that you are at a younger age and the chance of being hospitalised is even lower.

Insurance works best when you have to cover big odds, such as the chance of dying in an accident in a year. This chance is 3 in 10,000. So you pay $45 to insure for $100,000. That makes sense.

Buying insurance to cover the Deductible and Co-insurance will make you lose and give a good profit for the insurance company.

The insurance agent encourages you to buy the rider because they can earn a commission of 10% or 15% on the premium that you have to pay each year.

Wednesday, October 12, 2016

Low payout under Medishield Life

Andrew Loh paid $3,239 for a quadrupled heart bypass operation. Here is a breakdown of the charges.

Total bill: $10,727
Government subsidy - 6,767
Net 3,959
Medishield Life - 720
Paid by Cash/Medisave 3,239…/

He was surprised that Medishield Life paid so little. In fact, the bulk of the subsidy came from the government, as he stayed in a subsidised ward.

If Andrew had taken an integrated plan, he would have paid a higher premium and would still have to pay a similar sum out of pocket. The integrated plan would require him to pay a deductible of $1,500 and a co-payment of 15%, so that would still come to about $3,000 or more.

I will be creating a video to explain Medishield Life. Meanwhile, you can watch my other videos on financial planning and insurance

Young drivers should check their insurance coverage

Susan drove her father in law's car. The car was badly hit by a van that did not stop. It happened fast. She was not able to get the plate number.

She sent the car to the workshop and was shocked to learn that the policy did not cover her, as she was under 30 years old. The father in law did not buy the cover that include family members below 30 years old.

The repair cost more than $15,000. She was not covered. She could have committed an offence of driving a car without the erquired insurance.

Be careful. If you are under 30 or have less than 2 years of driving experience, check that you are covered when you drive a car belonging to a family member.

Learn about motor insurance in

Sunday, October 09, 2016

Learn the secret that a few tens of millions are now enjoying

There are tens of millions people in America who are getting a good return on their investment and have been making the right investment for a few decades. Their return has been more than 6% per annum.

But there are many more people in America who are making  poor investments and are losing money by investing in bad products. Remember the subprime loans and the structured products derived from it?

Most investors in Singapore are also losing a lot of their savings in bad financial products. And many are getting a losing return of 3% or less by locking up their savings for many years. If they give up, they will suffer a big penalty.

I like to share the secret that is already known by the the tens of millions of wise investors in America. They invest in the index fund created by Jack Bogle and sold by Vanguard Group.

You can learn the secret of investing in the index fund. Watch my short video that can be viewed here

You can learn about it by attending this talk on 15 October. Do not miss it. I have no plans to hold another talk.

Insurers make a big profit on Eldershield

If you want to know how much profits are being made by the insurance companies on Eldershield (technically described as individual disability insurance), you can view the results here.

The insurance companies are making a profit margin of 30% after providing for reserves for future claims. Yes, they are making a lot of profits, maybe $100 million a year! It is huge.

So, consumers are getting a poor payout for their premiums paid into Eldershield.

Low payout under Eldershield

Dear Mr Tan,
Based on CPF annual report.
Last year premium for Eldershield is 364 million dollars.
Total premium since 2002 is more than 3 billion dollars.
Only 7,300 people claim and total claim is only 90 million dollars.
Total investment return from the reserve is more than 150 million dollars.
The claim per year is 10 million dollars, less than 7% of yearly return.
There are 120 million policy holders. The pay out is too low.

Eldershield provides life time cover.
The premium that is paid now will result in claims in 30 years time.
So, the immediate payout ratio is not indicative of the final payout.

However, it is true that Elderhshield gives a poor payout for the public, even after allowing for reserves for future claims.

If you want to know how much profits are being made by the insurance companies on Eldershield (technically described as individual disability insurance), you can view the results here.

The insurance companies are making a profit margin of 30% after providing for reserves for future claims. Yes, they are making a lot of profits, maybe $100 million a year! It is huge.

250 people have registered to view these videos

I have produced videos on the following topics:

Financial Planning
Financial Products sold by banks
Invest in an index fund
Buying Life Insurance
Critical Illness Policy
Motor insurance

Each video runs for 5 to 10 minutes. They are targeted at ordinary people in Singapore. They answer the questions that are often asked by them.

Over 250 people have viewed them during the past three weeks.

You can view these videos at

Be careful about your savings and your health

If you have a few thousand dollars in savings, you stand the risk of losing a large part of it in a bad investment. The bad investment could be sold to you by a marketing staff in your bank. Just imagine.When you thought that your bank is a safe place, it is not the case.

You also need to take care of your health, especially when you are older and have children.

Why not achieve two goals in a 3 hour talk? And it is free! You can also join the networking during the tea session.

Register now for next Saturday 15 October.

Be careful when walking on slippery ground

Six months ago, I slipped while walking in a light drizzle in Rancamaya, which is a hill resort outside of Jakarta. I fractured three ribs. It took a few weeks to heal. I had to take pain killer to ease the pain during this period.

I am now careful when I walk. I hold to the railings when I use the stairs. If the floor is wet, I will walk with slightly bent legs, so that the center of gravity is lower and the step is firmer.

There was a light drizzle last week when I walked to Thomson Plaza from my office for lunch. I walked carefully to avoid slipping. I explained my walking style to my lunch partner. She had also slipped and fractured her ribs a few years ago. She understood the trauma.

She said, "Mr, Tan. I just saw a younger person slipped and fell. She was in a hurry. She was cursing her bad luck. We are older and need to be careful when we walk".

I agree with her.

Learn a useful skill

I spoke to a staff at a restaurant. She was at the counter preparing the waffle.

TKL: How do you make the waffle?
Staff: I get the prepared waffle mix, add butter and egg, put the material into this waffle pan and heat it for 5 minutes. Then it will be ready.
TKL: Are you working here full time?
Staff: I am a part time staff. I study Hospitality course in Nanyang Poly and work here during the weekends.

This is a useful and practical skill. Maybe, she can manage a restaurant one day. Or start a bakery business.

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