Some insurance advisers have an unethical practice of "churning" the life insurance policies of their clients.
They advise their clients to stop their current policy and buy a "better" product. Being more knowledgeable, they are usually able to present a "convincing" case. Usually, the presentation is misleading.
The unsuspecting client take the advice of the adviser, who has the chance to earn a large commission on the sale of the new policy. The client is worse off, as they have to incur a large upfront cost, which may amount to two years of premium.
NTUC Income has measures to prevent the "churning" of life insurance policies. Our policies stay with us for many years.
Some other companies have policies that are churned every few years. The duration of their policies are usually much shorter.
Beware about churning. If your insurance adviser shows you how you can be better off by terminating an existing policy to buy a new policy, he is churning.
Just bumped into your blog lately. Find it very informative and learn lots of stuff here.
ReplyDeleteJust wanna say KUDOS for such a great site. It's sad that you r leaving NTUC though.
One of your income insurance agents did just that to me.
ReplyDeleteShe kept telling me to leave a "sinking ship", and kept saying income was better. She even misled me by using a projection based on her own policy.
On top of that, when I smsed her to ask to cancel my purchase, she didn't reply until over 2 weeks later.
Talked to her to reduced the premiums over the phone, she said her guests from Bangkok were around. She asked me to call the customer service centre. Which I did. But the line was busy.
Then I met her at a shopping mall peddling her insurance pdts, told her, but she never followed up.
Bottomline is, I've never seen any genuine insurance agents.
Income might have good pdts, but people will always be people.
Have the courage to inform the seller that you want more time to consider - and not confirming without serious thought. This is my advise.
ReplyDelete