Tan Kin Lian's Blog: Are you paying too much for your insurance?

Monday, December 03, 2007

Are you paying too much for your insurance?

Read Dr Money's article in

http://newpaper.asia1.com.sg/columnists/story/0,4136,116909,00.html?

9 comments:

Anonymous said...: You won't believe what i found out.Ntuc is going for the old people.Like the banks, maybe fleecing the old is easier. They are slower, gullible and easy to clobber. This is getting out of hand and i can't see how revosave can help enhance the old people's retirement fund.
Have NTUC insurance salesmen run out of victims? They are now targeting Revosave at 60 year olds.Don't have fish prawns also can? How they do they pay the premium when they are not working? Taking out their retirement fund to pay for the regular premium and then get back some of their own money after 2 years is certainly stupid and financially idiotic.If the old poeple want a stream of income they can just save in the money market and a make a draw down. This gives better return (3.5%). On top of it, safe ,no lock in, no committment, better return,liquidity and flexibility.
Insurance? These people don't need but more money.
Come on, salesmen, spare the old folks. Don't ensnare them. They are already at wits' end and you sending them early to their maker.
Go for the rich and clean them up, and no one is hurt.; December 01, 2007 10:27 AM
Anonymous said...: Out there there are still people who would fall for the hypnotic and confusing revosave pitches.Not only the old but also the young, you should be aware of what revosave is and to see that it is a useless product. Its claim of liquidity, flexibility, protection and investment are playing of words to hoodwink you. Yes , it has but very watered down version of the simpler plans.
I will take them apart and analyse for you.
Liquidity?--- one word RUBBISH. Either they pretend not to know the meaning or they think you are stupid.
HAVE YOU HEARD OF FLEXICASH? The prefix flexi tells you everything.Put into Flexicash and you REALLY get liquidity.Sunny or rainy days the cash is there for you to use; no need to wait.
Return? Fantastic!!! you get 3.5% and if you put $3000 a year you get about $110,000 after 20 Years. With revosave? you get only $66,000.What a whopping difference!!!
Unless you are number illiterate you can see which is superior.
You can invest online--no need agent--better.
PROTECTION? If you decide to buy an insurance, term or endowment or wholelife you can do so. You get MORE PROTECTION.Buy term and you still have a lot of cash to spend in whatever way you want.
INVEST? just invest in ID7. Maybe you pay 3.5% upfront charge . What is the big deal? It is up to you to invest more more or everything. With revosave you only invest the cashback which is 60% of your premium.(what happened to the 40%? you know lah)
FLEXIBILITY? Flexicash!!!this is absolutely fantastic.. the money is at your disposal to do anything you want with it. Revosave is limited to the timing of the cashflows. Wait long long and so long, no good.
Friends, if this analysis still doesn't convince you I think you need your head examined, young and old. An alternative is to engage an honest adviser to guide you to make you see things in their TRUE perspectives.; December 01, 2007 6:05 PM
Anonymous said...: With sustained publicity and education I am sure that the public
will wake up to realise that the products sold by insurance agents are not suitable and expensive. This blog is ideal to do it. With Mr. Tan and Dr. Money championing the cause of the poor customers greater awareness of the agents' unscrupulousness, and dishonesty and incompetence can be revealed.It is best to stay away from them especially at roadshows if you are not sure about them.; December 02, 2007 10:53 AM
Anonymous said...: Dear Mr Tan,

I agree with the comments by Ah Pek. I am an insurance adviser with Income for many years.

The new management encouraged us to sell Revosave, and give higher commission to us.

I feel quite bad about selling this new product, as it does not give an attractive return to the policyholder. It is also packaged to be quite confusing. This is against the cooperative principles that you thought to us.

I wish to go back to the old days when I can feel proud that Income products are designed to be best for policyholders.

I cannot give my name, and I like to wish you all the best in your blog.; December 03, 2007 7:43 AM
Anonymous said...: Mr. 7.43am, i am sure there are many like you who feel not right about selling products that don't benefit the customers. It is not about money and commission that you are in the trade. Foremost it is about helping people with their financial needs and get rewarded for helping them.You keep up with your belief and passion.
But unfortunately, the company and its agents have other goals. The company wants to be number one at all cost even at the expense of customers.The agents who are greedy collaborate eagerly with the company to suck the customers dry.
It is win-win- loss for the customers.It is not the great Singapore sale but it is the GREAT CONSPIRACY SECRET.; December 03, 2007 9:06 AM
Anonymous said...: Reading the above comment, i feel pitiful,
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
The new management encouraged us to sell Revosave, and give higher commission to us.

I feel quite bad about selling this new product, as it does not give an attractive return to the policyholder. It is also packaged to be quite confusing. This is against the cooperative principles that you thought to us.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
NTUC income has reduced Enhanced Income Shield coverage recently while lots of policyholders decide to switch to other insurance company.
Mr. Tan, seeing your well-managed NTUC income fall into such a situation today, will you be sad?
The new CEO, i still remember you have said, "is young and capable", do you still think so now?; December 03, 2007 3:43 PM
Anonymous said...: If anyone has experienced the revosave presentation by NTUC agent, it is similar to a TIME SHARE presentation. You will be brought round and round in circle until you are confused. You hear nothing but spending , holidays, resorts ,rainy and sunny days.
The agent won't let you go until you agree and sign.Like Time share scheme they earn high commission. That is why when they have you they see money money and money..; December 03, 2007 6:20 PM
Anonymous said...: Dear Mr.7.43am, i feel the same as you. I am a FC with NTUC and i have not sold a single revosave too. I refused not because i could not.If i did, that would have betrayed all my clients who trust me.
I remember telling my clients about a similar cash back product a few years ago that it was not good. Not only not good but very useless for them. I even condemned it. How can i go back on my words about this revosave which is no different from that one. A product is bad no better which company sells it, right? Let those agents sell if their conscience is clear and not pricked. They have forgotten what they said.I don't know why?
Never mind as long it is not us. They bear the responsibility.
Many people buy because of the BRAND NAME OF NTUC built up by Mr.Tan over 30 years.Don't think it is us, we are not clever. They think any product from NTUC must be good and will not cheat them. They trust NTUC.But it was true but no more now. They forgot that
Mr.Tan Kin Lian is not in charge any more but another who is different, who wants to be number one quickly; who doesn't care about the customers. Use high commission to push the FCs that they become blinded by money and incentive trips.I feel sorry for them. I only hope their customers will not come to know one day that theyr have been taken a ride, maybe after 2 years when they recieve the first cashback.
Don't worry, Mr.IA. As long as you keep your ethics above your personal interest your clients will appreciate you. All the best, comrade.; December 03, 2007 8:39 PM
Anonymous said...: I am not an agent but a customer and I agree with your comment that the present CEO is using the brand name built up by Mr. Tan KL over the last thirty years to make a quick buck. It is also my experience that he does not care for his customers. I despair to see the good brand name of NTUC Income, whose competitive advantage is to look after the masses and stabilise the market, go down just because of one man. But what can we do. I worry about my money that I am pumping in every month but stopping payment means I would lose all my planning and effort the last twenty years.; December 12, 2007 1:11 AM