Insurance
Effect of Deduction
By Tan Kin Lian  •  November 17, 2011
Hi Mr Tan. I am signing a policy soon. But I don't understand what the effect of deduction is. It's a AXA policy called INSPIRE FLEXI 2. After reading your blog, I tried to do the calculation but am more puzzled. Attached are the 3 pages of the illustrations. I hope that you can advise me.REPLY The Effect of Deduction is the amount taken away from your future savings. You can see that this is a large amount. Why are you investing in a life insurance policy when so much is being taken away? It is better for you to invest on your own, e.g. in the STI ETF, as advised in my book. You can buy term insurance for your life insurance protection. Please read my books for a better understanding on this matter. www.tankinlian.com/ishop You can also attend the FISCA talk on 26 Nov ...
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By Tan Kin Lian
Mr Tan Kin Lian (fomer NTUC Income CEO) started his insurance career in 1966 in a local life insurance company. He has also worked in various positions as a computer programmer, organisation and methods officer and consulting actuary. Mr Tan writes daily in his blog. The information in his blog is transparent and has an open approach.
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