Thursday, February 28, 2008

Comparing Anticipation and Revosave


Despite the fact Mr Tan has repeatedly said he delivered products that give good value, he designed the Anticipation plan when there were better value products like Endowment around. Anticipation is Revosave's predecessor. Personally, I find this an irony. I hope Mr Tan do not take offence in me bringing up this blunt fact.

Here are the facts.
1. The Anticipation plan was designed 25 years ago.
2. It pays a lower rate of commission compared to similar plans in the market
3. It offered an attractive return to the policyholder, more than 4% per annum
4. The return on Anticipation is similar to Endowment plan, as the payout is every 3 years.

I am not familiar with the Revosave plan. Some people said that it offers a poor return, which is much lower than the Endowment plan. It is also quite confusing to the customer. I would not have designed such a product, as it goes against my belief on what is good value for the customer.

In today's environment, it is better to invest in a low cost, diversified fund. The saving plan is more flexible. Read this FAQ:


Anonymous said...

What is REVOSAVE for?
#1.For protection? #2.return? #3.retirement?
#4.for liquidity? #5.for flexibility? #6.investmment is miserable. eg $3000
annual premiuum for $35k sum assured.
Customers must be nuts or agent mentally deranged.
#2.return? you put under the bed you get better return. Take the present value of your premium. Imagine you pay $60k to get $66K after 20 years. Again you are nuts. Revosave return is less than
#3.retirement? if revosave can, any other product better.
#4. Liquidity? for goodness sake someone lend them a dictionary. It is obvious misrepresentation.
#5.Flexibility? keep the cash with you ,isn't it real flexibility. Keeping with NTUC where got flexible? eh?
#6. investment? imagine you give $3000 and they invest only $1700 for you at bid price?n What if you invest $3000 and pay offer price of 3%? for 20 years the total cost is $1800. Great, eh? save you $500 over 20 years. BIG thing!!!
What about the return I get investing $3000?
Fantasy , that is what revosave is.
Dreams, that is what revosave is.
Rainy equal sunny equal gloomy equal doom, that is what revosave is.
This is my review of this flagship product. GOOD OR NOT?
Caveat: agents are clever to turn the table on you. They have Enough
incentives to change it to their favour. Fantastic salesmanship!!!

Anonymous said...

What's happened to the "best kept secret"? You don't hear it anymore. Stale, so fast?
The truth is the secret is out that that the 'best kept secret' was Mr. Tan's best kept secret.
Fancy one uses another's backside skin as one's facial skin.
Anymore secret"
Yes , the secret is, operational cost is spiking and that is why revosave and vivolife cannot give that kind of return you used to get a few years ago.
How come? Wel, well , eh, eh well.

Anonymous said...

Products like revosave and other cashbacks are ,perhaps, one of the reasons MAS is holding the ceo and senior managers responsible for product design in the fair dealing guidelines. MAS should be concerned
about responsible products for the consuming public instead of designing products there have little or watered down benefits and using the army of unethical insurance salesmen to beguile them into buying.This is deviating from the objectives of insurance and financial products. Hope the insurers are not learning the tricks from the arrangers of the
derivatives or synthetics ,MBS, CDOs and the likes.

Anonymous said...

Regardless of what Mr. Tan did in the past, now he has a new life after leaving Income and starting afresh.

Let the past be the past, bygones be bygones. What do you want him to do? Turn back time? Let's not expect anyone to be a saint. If you don't like his advice now, don't take it.

Even if a person makes mistakes in the past, so long as he is willing to change for the better, why not give him a second chance? "Let he who has no sins cast the first stone".

His current approach is quite ok to me.


Anonymous said...

only idiots would buy revosave. They regret if they find out that they have been taken for a ride. That day will come. I hope they would not be idiots again NOT to take action against the agents or the company. FIDREC by then will be poised to handle many more disputes.
Remember that FIDREC is your complaint body. Don't forget your rights. Don't think it is expensive to take the errant agents to task.
The agents are the ones to pay whatever wrongs they have done to you.

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