A life insurance company advertised a "cash back" if there is no claim under its term insurance plan.
This is how the plan works:
* the premium for the term insurance plan is, say $X a year
* for the cash back plan, the insurance company will charge $Y, which is probably charge 3 or 4 times of $X
* the difference between $Y and $X is invested to produce the cash back benefit to be paid on the end of the term.
Is this a good plan? You should consider the following:
* what is the return on the premium for the cash back benefit
* do you get a cash value, if you discontinue the plan during the term.
Lesson: Generally, it is better to avoid a "bundled" or "lock-in" product, unless the terms of the product are designed to be fair to the consumer.
- ► 2013 (348)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1655)
- ► 2008 (2105)
07/15 - 07/22
- Invest in a low cost fund
- Renewal of motor insurance
- A cooperative has to answer to its members
- Underlying assets of structured products
- Consumer Protection on Mortgages - USA Experience
- Negative aspects of Singapore system
- The Day When Singapore Panicked
- Credit card for students?
- Singapore Dollar and the Carry Trade
- Sub-prime mortgages in America
- Good financial products
- Structured products in America
- Customer-friendly Call Center
- Give your full name
- Logic9 (Sudoku)
- An efficient public service
- Well rated Bonds
- Risk of credit default
- Cash back on a Term Policy
- What's bad about the Singapore system?
- Confusing Message
- Owned by the people
- CPF or life annuity
- Did you invest in these structured products?
- Risks of investing in Structured Products
- Credit Default Swaps
- Pinnacle Notes - 2 views
- Pinnacle Notes - do you know the risks?
- Good experience with structured products
- Return from various types of investments
- A customer focused organisation
- CASE Website
- Use of ATM in other countries
- Surgical Schedule
- A simple medical insurance product
- What product is suitable for my age group?
- How can CPF be improved to give a better return?
- What's good about Singapore
- National Day - Sudoku (Logic9)
- ▼ 07/15 - 07/22 (40)
- ► 2006 (696)
- ► 2005 (159)