Insurance agents face a conflict of interest.
They have the choice of selling an expensive product that pays a high commission, or a low cost product that pays a low commission. Which should they sell?
If the agent thinks about the commission that he can earn, he will naturally sell the expensive product. This means that the customer has to pay more for the product.
The insurance company has to design the product so that it looks much better than it really is. They train the agent to market the product.
In reality, the product does not really give much more valuable coverage for the customer. It is a way to make more commission for the agent, and more profit for the insurance company.
The same point can be said for many of the structured deposits and structured products that are being sold on the market today.
My advice: As a consumer, you have the choice to buy the simple products that offer the necessary coverage at a reasonable price.
Do not be taken in by a well trained agent who can mislead you into buying the frills that are not really necessary, but cost you a lot more.
NTUC Income has been offering simple products that give better value to the customer. You can approach an insurance adviser from NTUC Income or visit the business center in Bras Basah Road. It is a safe bet.
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