Products that give good value

COMMENTS POSTED IN MY BLOG:

You emphasize to "buy term and invest the best".

The point is: if the Income agents think in the best interest of clients, then they should sell a reducing term instead of a whole life, isn't it? Is a $1,000,000 reducing term enough for 30 yrs?

There are many unit trusts that almost 0% sales charge, why does the agent need to sell a 1.5% sales charge single premium policy? Why?!

Now, you recommended people to buy traditional plan and ILPs ... what good are they? According to you, low returns, low coverage. You are the one who stands for de-coupling insurance and investment, in the first place!

Sometimes you make contradicting remarks. I wonder if you stand for consumers or insurance co.

---------------------------

REPLY:

A product that is good for consumers have the following characteristics:

* meet their needs (for insurance or protection)
* have a modest charge
* are designed to give good value to the consumers and a fair profit margin.

The following products can quality as "good products"

* term insurance, combined with low cost investment fund
* traditional products, with modest commission charges

There is a broad range of consumers, with different levels of needs and awareness:

* A small percentage are financially savvy and can make their own decision and transact through the internet.

* The majority needs to be advised; and the adviser needs to make a living. They also give good value.

According to my model, there is room for all types of products and services, as long as ethical business principles are observed: give good value to consumers.