Some life insurance companies condone the practice of their insurance agents in getting the customers to switch their old plans into new plans.
The unsuspecting customers have to incur the front end charge all over again. This is costly to the customers. The agents benefit, as they can earn a large commission all over again.
NTUC Income does not condone this practice. Our policyholders keep their policies with us for many years, much longer than other insurance companies.
Here is the proof.
Our market share in new business average about 12%. Our market share in in-force business is about 18%. Why is this possible?
The reason is simple. About one third of the business of other insurance companies are replaced by the insurance agents. These insurance agents tell their customers to switch to the new plans, which are supposed to be "better". In reality, the customer has to incur the front end charge all over again (up to two years of premiums) in making the switch. The agents earn the high commission again.
You should avoid insurance companies that have a high market share in new business, and a low market share in existing business. The insurance agents are likely to be replacing the old policies, at the expense of the customer.
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