Tuesday, December 25, 2007

Beware of bad products

Hi Mr. Tan,

Someone described in your blog, that life insurance as "legalised rip-off". Is this a fair statement?


There are many insurance products that give good value to consumers. They serve a need and are priced fairly. Read this FAQ:

There are other products that are bad for consumers, as follows:

1. They are designed to maximise profit for the insurance company
2. They pay high commission to the agent to sell the product
3. The agent are trained to use emotion to sell the product
4. The product has many complicated features that have doubtful value
5. The agent worked hard to push the product
6. The agent and the insurance executive will not buy the product for themselves

You should identify and avoid the bad products (including bad products sold by banks).


Anonymous said...

Bad products are normally recommended or sold by bad insurance salesmen.

Does this statement make sense?

Good adviser advises before recommending products that are good for the customers.

Bad salesmen sell what is good for themselves and what is good for salesmen is normally bad for the customers.

Does filling forms justify high commission?

A lawyer does more than filling forms doesn't get as much as the insurance agent. Example ; writing a WILL requires gathering data first before crafting the will.Is the will as expensive as the commission you pay to insurance agent?

My point is bad products and bad insurance agents are related.

Anonymous said...

Whole life , endowment, single and regular, regular ILPs are bad products that meet Mr. Tan's definition.
Examples of bad products from NTUC as below.
Limited premium living, Growth, Pay Myuni(education policy),ID2 and revosave.

Good products from NTUC as below.
Family insurance, Combined Funds, Incomeshield.

Remember to ask your advisers a lot of questions.

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