Friday, December 28, 2007

Avoid high charges

Dear Mr. Tan,

Should I go for those linked with investment (XXX Life Manager Plus) or those (YYY Guaranteed 15 for Life) that only need to pay for 15 yrs and covered for life?

REPLY

Both of these policies have high charges. A large portion of your premium goes to pay the commission of the agent.

My advice is to buy Term insurance and invest the difference in a low cost, diversified equity fund.

Read the following FAQs.

http://www.tankinlian.com/faq/fptips.html

http://www.tankinlian.com/faq/savings.html

http://www.tankinlian.com/faq/ilp.html

http://www.tankinlian.com/faq/term.html
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1 comment:

Anonymous said...

Traditional insurance products are rip off. Cost and return are inversely related.Up to 20+ months of your premium is taken from you to pay the insurance agents and the company.
If you don't hold for 15 years you don't even get your capital. For the limited premium you mentioned it is even later and the worst.
If you buy a term and invest the rest you might break even within a year or earlier.(this depends the kind of RSP you use)
You see the vast advantages?
You buy a whole life product i gaurantee you never hold for whole life. So why buy then? And if you hold for whole life you will be shocked to know your accumulated cash is depleted from paying your caring insurance company who is happy and loves you for holding.
Wake up, you consumers , don't let the appear to be caring insurance companies and their shed crocodile tear agents rip you off. They team up to squeeze you dry.
Where do you think their trappings come from? From you, guys, lah.

December 29, 2007 4:57 PM

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