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&&&& LIFE INSURANCE FRAUDS &&&&
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pharoah88
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13-Dec-2010 14:07
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September 2nd, 2010
Expenses Expenses – Where Does Your Money GoWhen life insurance carriers price life insurance policies, there are a number of factors that they need to take into account. The primary issues a life insurance company considers when pricing a policy include the mortality risk of the insured, the amount of insurance being requested and the expenses needed to operate the company. Expenses are a fact of life for any business. Like most organizations, life insurance companies need to pay salaries,rent, commissions and other operating costs. Generally you can lump the carriers expenses into two general classes: Ongoing operating expenses and the cost of new business acquisition. Whole life insurance and Term life insurance policy premiums have their projected costs worked out in the initial pricing of the policy when it is issued, but flexible premium policies like Universal Life Insurance Policies remain sensitive to cost issues for the life of the policy. The insurer’s ongoing expenses can be dealt with in a number of ways in universal life insurance policies: Each year, the carrier will apply a percentage of its operating expenses against in force policies. Ongoing expense charges may be deducted from each premium payment when the owner makes her premium payment. Alternatively , a charge for ongoing expenses may be made monthly from the policy’s cash value, or can be split amongst the existing cash value and the incoming premium. When ongoing expense charges are deducted from each premium, the policy spec page usually notes the anticipated deduction. Most policies have an expense charge of 4 to 7 percent. If your carrier is deducting the costs from your cash value instead, then your specifications page will note that the carrier is deducting a percentage of cash value. Generally the costs will be 3-5 cents per $1000 in specified coverage. The carrier might even specify a fixed monthly policy fee. The more competitive policy will, of course, tend to have lower expense charges. Beyond the carriers monthly expense fees, it will also need to recover the costs of finding you as a client and selling you the policy. A typical carrier might spend your first two years in premiums on the costs of getting your policy “on the books.” The agent generally makes 90 to 105 percnet of the first year premium as his commission when he sells the policy. His Broker/General Agency might make another 45% to cover their costs of managing the policy placement process. The carrier also needs to pay for medical records, and underwriters, and analysts, etc. Excess first-year expenses will be recovered by the carrier over the life of the policy. They may be recovered from each premium received by the company, or will be deducted from the cash value in the form of a surrender charge if the policy is terminated before the costs are fully recovered. A universal life insurance policy’s surrender period may be as short as 10 years or as long as 20 years following the policy issue date. In general, the carrier is almost always in the red on any policy they sell until the policy has been in force for at least three years, so they structure their charges to discourage consumers from bailing out of a policy until its costs have been recovered and the transaction has been profitable. |
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pharoah88
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12-Dec-2010 12:42
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Charges deducted for whole life policies are excessive - The ...www.straitstimes.com/Think/Story/STIStory_612937.html
Get more results from the past 24 hoursCharges deducted for whole life policies are excessive - ST ...1 post - 1 author - Last post: 6 hours ago Charges deducted for whole life policies are excessive ST Forum.comment.straitstimes.com/showthread.php?t=40406 ST Discussion Board - Search Results
Charges deducted for whole life policies are excessive. Today 06:45 AM. by STTeam Go to last post. 0, 10, ST Forum · Popular media alone not to blame ...
comment.straitstimes.com/search.php?searchid=1322662 Get more results from the past 24 hoursST Discussion Board - Search Results
Thread / Thread Starter, Last Comment, Comments, Visits, Forum. Go to first new post Charges deducted for whole life policies are excessive. Today 06:45 AM ...
comment.straitstimes.com/search.php?searchid=1322650 Get more results from the past 24 hours[PDF] BUDGET SPEECH 2010 BEING DELIVERED BY FINANCE MINISTER THARMAN ...
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22 Feb 2010 ... aimed primarily at avoiding excessive job losses. .... family can progress and enjoy a better quality of life. ... Achieving 2% to 3% productivity growth per year for a whole decade will be a major challenge. ..... acquisitions could be deducted against taxable dividend income. ... www.straitstimes.com/STI/STIMEDIA/.../2010BUDGETSTATEMENT.pdf [PDF] BUDGET SPEECH 2010
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life. The Budget will provide further support for our low-wage workers to upgrade ... Achieving 2% to 3% productivity growth per year for a whole decade ... www.straitstimes.com/STI/STIMEDIA/sp/.../budget_2010_speech.pdf ST Forum - ST Discussion Board
Get more discussion resultsBasic Types Of PoliciesMany such policies have substantial surrender charges if you want to cash in the policy ... A front-end type policy will deduct a percentage of the premium paid, ... Excess Interest Whole Life If you are not interested in all of the ...
www.ins.state.ny.us/consumer/life/cli_basic.htm - Cached - Similar Universal life insurance - Wikipedia, the free encyclopediaA similar type of policy that was developed from universal life policies is ... Another major difference between Universal Life from Whole Life ... the costs of insurance are paid from untaxed excess interest credits, .... As long as these charges can be deducted from the cash value, the death benefit is active. ...
en.wikipedia.org/wiki/Universal_life_insurance - Cached - Similar Life Insurance - De Fazio Insurance AgencyExcess Credits Unlike similar policies, Farmers Premier Whole Life makes it possible for ... A surrender charge is deducted during the first fifteen years. ...
www.defazioinsurance.com/Untitled3.html - Cached Expenses Expenses – Where Does Your Money Go | Life Insurance .net ...2 Sep 2010 ... When ongoing expense charges are deducted from each premium, ... Excess first- year expenses will be recovered by the carrier over the life of the policy. ... A universal life insurance policy's surrender period may be as ...
www.lifeinsurance.net/expenses-expenses-where-does-your-money-go/ - Cached universal life insurance Definition | Business Dictionaries from ...A specified percentage expense charge is deducted from each premium ... guaranteed and excess interest credited to the cash value account, ... earnings from variable life policies are tax deferred until distributed. ... Whole life insurance is also known as ordinary life, permanent life, or straight life insurance. ...
www.allbusiness.com/glossaries/...life.../4943821-1.html - Cached - Similar Permanent Life InsuranceCash values in whole life insurance policies typically include two components: ... of "dividends" or "excess interest" which can enhance the value of the life ... Most policies also have a decreasing surrender charge which is deducted ...
www.markbighaminsurance.com/index.php?option=com... - Cached Insurance Terms Glossary : Education : Insurance Basics : American ...4 Oct 2010 ... An optional policy in a universal life contract that provides ... The option is available only for certain Excess Interest Whole Life plans, ..... Companies may also deduct this charge if the owner borrows money on his ...
https://secure.aglife.com/life/life.nsf/.../learningcenter_Glossary - Cached - Similar |
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pharoah88
Supreme |
12-Dec-2010 12:39
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dIctatOrIsm ? ? ? ?
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pharoah88
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12-Dec-2010 12:37
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About 1,510 results
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AnthonyTan
Elite |
22-Nov-2010 17:12
Yells: "patience" |
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One forummer has created a page exclusively for you, "Home for pharoah88" Hope you make good use. |
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pharoah88
Supreme |
22-Nov-2010 17:05
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Monday, November 15, 2010Misconceptions about insuranceMisconceptions about insurance
ST Forum | Updated today at 06:00 AM I REFER to the ongoing discussion on insurance products (Mr Gideon Lee, "Buyers, not agents, decide the products they want..."; Nov 5), and would like to highlight some misconceptions. Whole-life policies that "give back" the premium come with higher price tags. For a young healthy male who is just starting his career, a coverage of $500,000 for term insurance costs around $2,000 a year, whereas a whole-life policy with the same coverage could cost around $10,000 a year. The difference in the premiums between the term and whole-life policy is invested by the insurance company and a significant portion is pocketed by the company before the remainder is returned to the customer. Whole-life insurance policies provide only the illusion of "giving back" some of the premium paid. It is akin to pulling money from your right pocket, taking some of that for myself, and putting the remaining amount back in your left pocket. I simply do not see how this is a good deal when consumers can pocket the difference, save and invest the money by themselves. The claim that many customers prefer a policy that "gives them" something at the end shows their lack of understanding of the purpose of insurance - that it is meant for protection against catastrophic effects and not for savings. So one should not expect anything back if the catastrophic event does not occur. Garrett Goh Why term insurance makes sense nowWhy only term insurance plans make sense now
ST Forum | Updated today at 06:00 AM MR GIDEON Lee ('Buyers, not agents, decide the products they want'; last Friday) asked why I am advocating term insurance when the insurance cooperative that I headed had been selling whole-life and investment-linked policies for 30 years. During my time, the whole-life and endowment policies were sold with distribution costs that were much lower than comparable products in the market. The effect of deduction was about 20 per cent over 25 years, compared to the 40 per cent for most policies today.
In the past, the cooperative also distributed high rates of bonuses out of the surplus, giving a high yield to policyholders on these old policies. The letter writer quotes the example of a term insurance premium that charges $200 a month. This is an exaggeration. A young person can buy $300,000 in sum assured under the Singapore Armed Forces (SAF) group insurance scheme and pay only $38.40 a month. This is available to SAF soldiers and operationally ready national servicemen, and their spouses. To buy this amount of protection under a whole-life or unit-linked policy, the consumer usually has to pay a premium that is 10 to 20 times higher. Some dishonest agents deliberately quote a higher cost for term insurance to persuade the consumer to buy the alternative policy that charges a higher premium and pays a fatter commission. Mr Lee said correctly that the distribution cost is not paid entirely as commission to the agent. Part of it is paid to the agent's manager and spent on lavish overseas trips and other sales incentives. Regardless of how the money is spent, the consumer does have to pay the total distribution cost. The writer said the commission is given for selling the product and not for advice. If this is the case, why are these people called financial advisers, consultants or other impressive names and not life insurance salesmen? The writer is wrong in saying that I am advocating a one-size-fits-all solution. My aim is to educate consumers to invest their savings in a low-cost investment fund, rather than a life insurance policy, to earn a better long-term yield and achieve greater flexibility. Tan Kin Lian |
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pharoah88
Supreme |
20-Nov-2010 17:05
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Nov 20, 2010Strategy behind buying term insuranceI REFER to the ongoing discussion on insurance products (Madam Lim Pueh Joo, "Investment-linked policy works best for me"; yesterday), specifically to address the "advantages" of investment-linked policies (ILP). Madam Lim is technically correct in that once the term insurance period ends, renewal premiums will be costly if a person develops a medical condition. However, purchasers of term insurance are not looking to renew their policies at the end of their terms. Buying term insurance is only half of the strategy. Advocates of term insurance will save and invest the difference between the premiums of a comparable ILP policy and term policy. Consumers who buy term insurance and invest the difference will very likely be able to accumulate their own "cash value" by the time the term policy expires. This self-accumulated "cash value" will be at least equivalent to, if not greater than, the insurance coverage purchased. Having a personal "cash value" is also more advantageous, because one can claim one's own money without restrictions, such as adhering to the strict definitions of 30 critical illnesses. It is well known that ILP policies introduce many additional fees that increase their effective expense ratio. Low-cost investment products have an expense ratio of about 0.5 per cent, which is much lower than the ILP expense ratio. The latter may be around 2 per cent or higher. ILPs appear to be a win-win situation only because consumers are not well educated about the cheaper alternatives out there. Garrett Goh |
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pharoah88
Supreme |
29-Oct-2010 12:13
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Any BANK withOUT nOrmalised Interest Rate wIll nOt recOver. When Interest Rate is NEAR-ZERO, ecOnOmy is sIck and eXtremely FRAGILE, bank is at hIghest rIsk Of DEFAULT. STAY CLEAR OF NEAR-ZERO INTEREST RATE BANKS |
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pharoah88
Supreme |
27-Oct-2010 12:33
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Wednesday: 27 10 2010 How Health Minister Khaw paid $8 for his heart bypass ... Neo Chai Chin
help themselves, four new co-operatives could be in the pipeline, according to the Singapore National Co-operative Federation. The first such co-op — to cater food for nursing homes — could be up-and-running by the end of the year. Other proposals initiated by those in their 50s and 60s under consideration are co-ops to provide travel and human resources services, said SNCF chief executive Dolly Goh. A fourth — offering jobs in quilt-making and goodie bag packing — is initiated by the Central and Southeast community development councils. Asked how the proposed co-ops would make a difference, Mrs Goh noted that the food catering co-op could result in more nutritious food for nursing and aged home residents. “If they come together and provide food catering for many homes, then they could get probably a nutritionist, a dietician to provide special food for special needs of the elderly,” she said. There are 82 co-operatives in Singapore and 71 of them are affiliated with the SNCF. Senior-targeted co-ops are one of SNCF’s new areas of focus. Meanwhile, Agency for Integrated Care is partnering Temasek Cares — the philanthropic arm of Temasek Holdings — to boost the intermediate and long-term care sector. Temasek Cares will be providing $650,000, of which $400,000 will go to the Salvation Army Bedok Multi-Service Centre, towards expanding its services beyond rehabilitation which would include extra meals, nursing and personal care services. In addition to just therapists, a visiting doctor, a nurse and case manager, among others — will help coordinate each patient’s care needs. The project caters to elderly who are wheelchair-bound, or who require assistance in feeding, toileting or personal grooming. The remaining $250,000 will help attract new talent and beef up staff ranks in healthcare voluntary welfare organisations. SINGAPORE — To help the elderlyNG JIN G YN G jingyng@mediacorp.com.sg SINGAPORE In order to reiterate the importance of adequate coverage [who covers for him ? emplOyer ? persOnal ?], Mr Khaw said in his latest blog post yesterday that his operation, at the National Heart Centre Singapore (NHCS), was mostly paid for by MediShield and a private Shield supplement, while Medisave helped in the co-payment of the rest of his hospital bill. According to figures on the Ministry of Health website, the bill for heart bypass surgery is less than $30,000 for nine in 10 patients staying in an A class ward in NHCS. Those covered under MediShield — a basic insurance scheme for CPF members — can choose to top up their basic coverage by supplementing it with plans from private insurers, while Medisave allows members to dip into its accounts to pay for hospitalisation expenses. Recounting a recent meeting with health insurers, Mr Khaw also flagged the possibility of extending MediShield to cover mental illness, congenital illness and neonatal treatment. Mr Raymond Fernando, whose wife suffers from schizophrenia, told MediaCorp such a move would “greatly help in relieving my financial burden… and, hopefully, lead to other insurers taking the cue”. It could also reduce the stigma of mental illnes and encourage more patients to come forward, said Mr Fernando. Another idea f loated during Mr Khaw’s meeting with the health insurers was to raise the MediShield claim limits on outpatient cancer care, which stand at $300 per weekly treatment cycle and up to $2,800 for radiotherapy treatment. Mr Khaw added that there was also discussion on raising the monthly payout for ElderShield — a severe disability insurance scheme — to extend the monthly basic payout of $400 and to extend the payout period beyond six years.
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pharoah88
Supreme |
17-Oct-2010 14:23
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IS LIFE INSURANCE an UNethical BUSINESS ? ? ? ? | |||||
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pharoah88
Supreme |
17-Oct-2010 14:22
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WHEN does a WHOLE LIFE INSURANCE POLICY BREAK-EVEN ? ? ? ? WHY does a WHOLE LIFE INSURANCE POLICY nOt allowed the withdrawal of CASH VALUE ? ? ? ? |
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pharoah88
Supreme |
17-Oct-2010 14:18
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WHY should an insured buy insurance via a BANK instead of DIRECTLY from the underwriting INSURANCE COMPANY ? ? ? ? WHY should a unit trust investor buy UNIT TRUST via a BANK instead of DIRECTLY from the UNIT TRUST COMPANY ? ? ? ? Would there DOUBLE COUNTING in GDP for the country ? ? ? ? THINK THINK THINK THINK ? ? ? ? |
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pharoah88
Supreme |
17-Oct-2010 14:12
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http://articles.moneycentral.msn.com/Insurance/AvoidRipoffs/SpotUnethicalSalesPractices.aspx Spot unethical sales practicesThe era of rampant abuse in the life insurance industry may be over, but policyholders still need to be on guard against fraud and other shady tactics. advertisementAs the old saying goes, people don't buy life insurance, it's sold. That's not completely true, since most people really do need life insurance to protect the security of their loved ones. But it's in the type of life insurance and how much you buy that the adage rings true. Below are some of the things to watch out for when working with insurance agents. Keep in mind that most insurance agents are helpful and professional and that those who engage unethical practices are very much in the minority. Consumers had very good reason to fear some agents and some companies in the 1980s and early '90s because of rampant fraud and abuse. But now the tables have turned and the insurance companies are the ones running scared. Video: Get your insurance claims paid Life insurance as an investmentIn the late 1970s, insurance regulatory changes and high interest rates drove companies to develop new "investment-related" products such as universal life insurance. Agents started to sell life insurance as an investment. Policyholders began to consider permanent life insurance products as part of their investment portfolios.
Additionally, the advent of computer software led some companies to aggressively distribute insurance illustration software based on questionable assumptions, such as interest rates of up to 13% or 14% throughout the policy's life. Other companies figured out a way to override the maximum assumed interest rate and plug in their own numbers of as much as 19%. If the software would not allow this override, an agent sometimes would pay to have a simple spreadsheet program of his own developed for use in marketing permanent life insurance policies. The 'vanishing' premiumWith these assumed high interest rates, the projections showed that the premiums would "vanish" in as little as four or five years. Normally premiums vanish because the dividends (if it's a whole life policy) or interest (in the case of universal life) are enough to keep the policy in force by paying the premiums from the cash buildup.
This is especially true for universal life insurance, because unlike whole life insurance (which has a fixed premium), a person could pay less than the recommended premium -- sometimes even skipping a year. Many agents aggressively marketed this vanishing premium (or "premium offset") method of paying for insurance. There is nothing wrong with the vanishing premium concept, provided that a reasonable interest rate of 5% to 6% is used in the illustration as the assumed dividend rate. Under this analysis, the premium might vanish after 15 years or so.
But because the interest rate assumptions were unreasonable, what happened was disastrous: As actual interest rates dropped, premiums did not vanish. Instead, they continued to increase for a decade or longer. Even worse, some policyholders found that their vanishing premiums had suddenly "reappeared," and, in some cases, those premiums were more than the policyholders could afford. |
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pharoah88
Supreme |
17-Oct-2010 14:07
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http://www.scam.com/showthread.php?t=115360
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pharoah88
Supreme |
17-Oct-2010 14:05
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pharoah88
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17-Oct-2010 14:03
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LIFE INSURANCE FRAUDS | |||||
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