What Happened to Michael Fay?

I read with interest the news on a Swiss man who has been charged with vandalising the MRT trains at the train depot in Singapore. 33 year old Oliver Fricker has been released on a bail of $100,000 even though his passport is still impounded. His accomplice who is British is apparently already out of Singapore.

This reminded me of the Michael Fay incident back in 1994 where there was this whole big hoo haa when Singapore decided to cane a 18 year old American (who was reportedly suffering from ADHD) after he vandalised cars and stole road signs.

So what happened to Michael Fay?

After much pleading from the US, Singapore still proceeded to cane him at Queenstown Remand Prison. President Ong Teng Cheong however reduced the number of strokes of cane from 6 to 4. Still, the United States media had a field day thrashing Singapore's supposedly draconian laws, almost labelling us as a repressive state for scarring a poor boy for non-violent act.

When he was released from prison, Michael Fay flew back to the United States to be with his biological father. He had moved to Singapore earlier to join his biological mother and step-dad.

After that, he went on various television interviews and claimed that he was "tortured" and did not actually vandalise any cars. He admitted to stealing road signs but not to vandalism. Subsequently, he was involved in substance abuse and also possession of marijuana. He was also involved in reckless driving and stuff in Florida.

What Will Happen to Fricker?

So if an 18 year old American teenager who supposedly came from a broken family and had ADHD was actually sentenced to jail and given 4 strokes of the cane, what will happen to Fricker?

33 years old isn't exactly young.

Perhaps his punishment might be even more severe. But then we can only wait and see....

Cure Hiccups

I was hicupping the whole of yesterday. It was really irritating.

Knowing that hiccups is caused by too little carbon dioxide (I read it somewhere), I tried to hold my breath, hoping that it will remove my hiccups. But it didn't and so I kept hiccuping.

Then I came across this amazing 30 second cure for hiccups. I totally did not believe it but when I tried it, it worked like magic and my hiccups was gone. This must be the best cure that exist today. Here is how I did it:

Step 1 : Inhale air with your mouth until your lungs are full. Keep the air in there.

Step 2: Start swallowing. It is just the act of swallowing. You don't really have to be swallowing anything. Remember to still keep the air inside your lungs.

Step 3: Inhale some more air even though it is just a wee bit of air since your lungs are still full from step 1 and then do the swallowing thing again (repeat step 2).

Holding your breath alone does not seem to work well. You need to do the swallowing thing. Don't ask me why.

My hiccups was gone in less than 30 seconds just by using this method. This is the best method I have discovered in my 28 years of living! It was so good that I just had to blog about it.

The Fear of Something Specific is More Real than the Fear of Something General

As humans, we fear the specific more than the general.

I stumbled upon this thought while reading Al Gore's "Assault on Reason". In one of the chapters, he gave the example of how people would rather buy air travel insurance that covers specifically terrorist threats compared to just a normal air travel insurance (which by the way, also covers terrorist threats).

Somehow, it seems that people are more afraid when they know the specifics of what they have to be afraid of.

Air travel insurance.... No way... But air travel insurance that covers terrorist attacks...Now, that paints a picture in the mind of the consumer and the fear of this improbable event becomes more real (Remember September 11?).

The fear of something specific - something we can visualise - is often more real than the fear of something general.

That is why we see advertisements about critical illness insurance that mentions specific illnesses like cancer. Critical illness just seems too general and nobody really knows what critical illness means anyway. But highlight the specifics and you sort of create a visual image in the person's head. Let me show you 2 scenarios that helps bring out a person's fear when the specifics are highlighted.

Scenario #1

Insurance agent: Let me show you this plan which gives you coverage for critical illness.

Consumer: I don't think I need insurance. (Thinking in his head: What on Earth is critical illness?? Better not ask.. Later I look stupid)

Scenario #2

Insurance agent: Let me show you this plan which provides coverage against Cancer, Heart Attack, Stroke...

Consumer: Wah... okay..how much does it cost?

The above just highlights two simple scenarios. It could be the same insurance product that is being recommended but when one highlights the specifics (cancer, heart attack, stroke, etc), the fear suddenly becomes real. The insurance agent has painted a picture in the person's mind of a specific scenario that could happen to him in the future.

Funny isn't it? Our mind (and ears) sometimes do play funny tricks on us.

The author is really amused that humans often fear the specifics more than the general even though the general could include the specifics. (Hope that does not confuse you). However, he too finds himself falling into this trap.

4th Cheque from Google's Adsense

I received my 4th cheque from participating in Google's Adsense program.

It is not a lot really but still works out to be some"kopi lui" to keep me motivated to keep on blogging. Since people have been saying that I have been too transparent with my finances, I guess I won't reveal how much I got this time. All I will say is that it is the biggest cheque I have received thus far.

What I like about the cheque is that it seems to be mailed from all the way from the United States. The cheque is green in color and is very different from other personal cheques that I have received. On the cheque, everything is printed out. The best thing of course is the currency exchange rate. With the exchange rate now at 1US$ to 1.4S$, it works out to be quite a neat sum. Enough to eat a good meal =)

And in case you are thinking that this blog is making lots of money, it is not. It is some other site of mine that is actually raking in most of the money. Though I spend lots of time on this site, it still hasn't been that "productive" in that sense of the word.

NTUC I-Term Policy: The Cheapest in Singapore?

I was alerted by a reader of my blog that Aviva's SAF Group Term Policy might not be the cheapest around in Singapore. In fact, he pointed out that Philips Capital was selling some term insurance on its site. So I did a check and realised that he could be right afterall! The policy is actually called I-Term and is underwritten by NTUC Income and distributed by Philips Capital.

I had bought Aviva's SAF Group Term Policy some years back. Looking at the NTUC I-Term Policy now, I think that it is indeed a competitive product that might be much cheaper than other term policies around. Please do your own research as this is just based on my gut feel and opinion.

NTUC I-Term Policy

NTUC's term policy is a pure protection plan that provides coverage for death, total permanent disability and terminal illness. Terminal illness should not be confused with critical illness. Suicide is excluded for the first year of coverage. For TPD, the payouts are over a period of 5 years (10% for the 1st 4 years and the remaining 60% on the 5th year). This is pretty common amongst all insurance plans.

For a male of 30 years of age (non-smoker), a coverage of $100,000 will cost only $9 per month for a 5 year term and $13 per month for a 20 year term. As such, it does seem that the premiums are much lower than Aviva's SAF Group Term Policy! In addition, the premium rate is guaranteed for the term of the policy. That means that the premiums you will pay are guaranteed based on the number of years you are covering for yourself. Based on the website, you can choose between a 5 year up to a 35 year term of coverage (in increments of 5 years).

In fact, a Business Times article on August 2006 reported that I-Term was the cheapest term policy around then. I am not sure whether it is still the cheapest around in the market today.

No Minimum Entry age and Max Entry Age of 74yrs old (age last birthday)

I-Term has no minimum entry age. This means that a baby can be covered from as young as 1 year old. The maximum entry age is 74 yrs old.

A Quick Analysis

Based on first glance, I-Term indeed looks to be a value for money term insurance policy offering high coverage for low premiums. Unless someone corrects me, I would like to think that this is the cheapest term insurance I know of in the Singapore market today. Thanks to my reader for giving me the heads up on this cheap term insurance plan!

What I like about this plan is basically how it is competitively priced and how it offers a variety of terms for coverage. If I were to switch to this term insurance, I will most likely opt for the 35 year term coverage. In terms of monthly premiums, it might be cheaper than the SAF Group Term Policy that I have. In addition, it will be guaranteed renewable.

Aviva's SAF Group Term Policy provides rebates each year that help to make their term plans even more competitive when you take into account the rebates. For example, I have received this year's rebates of up to $100. So comparing premiums wise, it is a close fight between these two term plans. Nevertheless, I still think that for the benefits provided, the I-Term is rather competitive for its pricing. As my SAF Group Term Policy is lumped together with other critical illness and personal accident coverage, it is difficult for me to do an apple to apple comparison and decide whether it is truly worthwhile to switch plans at the moment.

If there is any NTUC income agent reading this blog, do let me know what the premiums are like for critical illness coverage and personal accident coverage. Who knows, I might even purchase the policy from you! =)

TM Asia Life Policy

I have an insurance policy with TM Asia. To be exact, it is a whole life policy with a plan name that is called Asia Life Plus. My parents bought it for me when I was 16 and I have been servicing it after I started working.

Recently, TM Asia declared that yearly bonus again for participating whole life policies and even though the returns on the par fund for 2009 wasn't fantastic, the bonuses declared were not reduced. TM Asia has never cut their bonus for the past 10 years. At least that is what I have heard.

After receiving the annual bonus statement, I decided to call the customer service centre for a benefit illustration of my policy. I just received the benefit illustration today.

Do note that since this policy was bought by my parents and handed over to me, I never did any comparisons with other companies then. While many people have never heard of TM Asia, it is actually quite a big company though it is relatively unheard of in Singapore. Its tied agency force is also very small as it tends to rely on IFAs to distribute its products.

A Quick Analysis

I am currently at Year 12 of my policy year meaning that I (and my parents) have paid 12 years of premiums worth a total of $22,204.80 for a coverage of $160,000 for Death and TPD. There is no critical illness coverage in this policy.

Based on the current surrender value, it is $11,200 (Guaranteed) and $4,357 (Non-Guaranteed). That adds up to a total of $15,557 in surrender value provided that the non-guaranteed component is accurate.

The bonuses become guaranteed additions to the sum assured once they are declared.

Terminal bonus on death and maturity

TM Asia whole life policy has the following feature:

Below 10 yrs : 0%
10 to 14 yrs : 25%
15 yrs: 50%
16 yrs: 100%
17 yrs: 150%
18 yrs: 200%
19 yrs : 250%
20 to 24 yrs: 300%
25 to 29 yrs : 400%
30 and above : 500%

This basically means that the non-guaranteed component for death or maturity of the policy starts to increase as the policy years go by. As my policy is only 12 years old, whatever bonuses that have been declared are still subject to 25% payout only. That means that if $10,000 in bonuses have been declared, the non-guranteed component payout is only $2,500. This bonus chart stated above relates only to claims during death and maturity (policy year 99 I am guessing). So I guess it is not really meaningful to me unless I die or I live past the age of 99.

Terminal bonus on Surrender

To add to the already confusing policy, there is another table that shows how the terminal bonus for surrendering the policy works out.

It states: "Terminal bonus on surrender as percentage of attaching bonus is illustrated from the end of 19th year onwards if applicable."

19 year: 125%
20 to 24 yr : 300%
25 to 29 yr: 400%
30 and above: 500%

Basically, at the 20th policy year ( meaning after 19 years of paying premiums), I can expect to see a big jump in the non-guaranteed component of the surrender value. This is illustrated in the benefit illustration where the non-guaranteed surrender value jumps from $8,464 to $20,858 during the 19th and 20th policy year respectively. At the 21st policy year, it almost doubles again to $42,057.

Conclusion

I have had thoughts of surrendering this policy but decided against it as I wanted to wait until the 20th policy year before making any decision. In any case, this policy serves as a good protection and savings plan for me. I know many people will recommend the proverbial Buy Term Invest the Rest mantra but this has worked well for me thus far. While it does not have Critical Illness coverage, I still have my coverage from other policies.

Many IFAs have also touted TM Asia's whole life policies as being one of the most competitive in the Singapore insurance industry. I am not sure how true that is. The only thing I know is that in terms of bonus declaration, TM Asia has been able to pay out a constant bonus over the past 10 years. Dollar for dollar and coverage wise, I would like to think that other companies might have even more competitive plans that provide better coverage at a lower premium. In fact, I think many of the whole life policies now are rather similar and competitively structured. Insurance companies often review their products so that they become better than their competitors.

Dividends from Innotek and Suntec REIT

I received another round of dividends into my bank account over the past week.

These includes:

1. Innotek = $750.00
2. Suntec REIT = $25.13

Including the dividends that I have received from Capitaland, KingBoard and China Aviation Oil previously:

3. Capitaland = $315.00
4. Kingboard = $62.02
5. China Aviation Oil = $140.00

Total dividends received for the month of May 2010 is $1292.15

I guess this can be treated as my mid-year bonus =)