Tan Kin Lian's Blog: Honesty is the best policy

Friday, March 28, 2008

Honesty is the best policy

Dear Mr. Tan,

I would like to extend my warm thanks for your honest insights into the insurance sector. Your advice correlates with what I have personally experienced and discovered through readings.

I'm afraid that while many agents state that they have the interests of the consumer at heart, in reality, they're more concerned about the commission.

I'll be recommending your blog to all of my friends. I hope more insurance agents will realise that "honesty is the best policy".

Thank you for your honesty. It is much appreciated in present times.

24 comments:

Anonymous said...: When agents tell you they are sincere and caring and they have your interest at heart.Let me tell you, it is a big bullshit and they are great liars if you find that they ARE NOT QUALIFIED AND COMPETENT.
How could they be sincere when they are not qualified? If they are sincere they should have upgraded their skills to help you.
How could they have your interest at heart when they are not qualified and don't know HOW to help you? Don't you think they are dishonest and they are telling lies?
Don't be taken in by the sweet nothing talk and the pretense of showing care. Check their credentials and qualifications. if their qualification is less than a CFP or a equivalent they are just salesman and salesmen can't help you except to sell you something that carries high commission.

Zhumeng:o); March 29, 2008 10:31 AM
Anonymous said...: CPF is the best retirement policy.
Please click:
https://www.cpf.gov.sg/cpf_trans/ssl/rnr/index.htm

NOTE: https (with a "s"); March 29, 2008 10:51 AM
Unknown said...: Seems like there are many people condemning insurance agents saying that they put their commission interest above their client's needs. It's sad sometimes, but come to think of it, its business right? Most businesses are like this. Being a insurance agent is also being in business.

Look at banks today. Since the 80s they have moved from their moto of "save" to the current "spent". No banks want you to save $ today, they want you to spend money on credit cards, spending millions of dollars on advertisements to get you to sign up, and offering never ending bonus points to entice you to spend more. They know they can earn more $$ from credit cards cos most people will default or make minimum payments and they have a very high probability of charging 24% interest. And when you walk into a bank, there are sales people to ask you to invest your hard earned $$ in their products.

Is this "Honesty and putting clients interest first?"

Look at Mcdonalds. Whenever you place an order at the counter, the crew will always ask you to "Upsize". Is upsizing to a large sugar filled coke and a large deep fried fries beneficial to the customer? Are they putting their interest to earn more $$ above the health of the customers?

Sad as it may seems, don't put the blame on the person offering the service. The duty is on your end to make your own decision. Right or wrong decision, it will be your own responsibility. Let us stop this blaming the agents thing and read Mr Tan's blog with the objective of learning more about investments.; March 29, 2008 1:02 PM
Anonymous said...: Yes, often at the fast-food outlets, the staff would even ask if you want this to go with that, tempting you to take out more notes from your wallet.

The daily Ads tempting us with bigger and better cars, more posh condos, etc.

Is Honesty the Best Policy?

starlight; March 29, 2008 6:19 PM
Anonymous said...: Benjamin, i like to refute your some of your statements.
You are right that everybody is in business to make money, insurance agents too.But what is wrong with insurance agents is the way they make their money.They make money dishonestly and that is what is wrong.
They compromise the interest of the clients and high commission is the cause.
Example:Agents could address a person's need with one product that is more efficient and at low cost but instead the same need is INADEQUATELY AND UNEFFECTIVELY ADDRESSED BY ANOTHER PRODUCT WHICH CARRIES A very high commission.Why? Isn't this a conflict of interest? If the product that carries a high commission can meet the needs it is perfectly okay.You know that , for example, whole life or endowment is expensive and the rich don't mind because the rich can afford them and they are not concerned whether the products are expensive or have low return or their needs are affected because of wrong choice.But for the majority it is different.
The issue here is insurance agents ignore the needs of the customers.
Your example of Mcdonald offering 'upsize' to customers is naive. The product on offer is a very simple product and decision made there and there has no dire consequence even it is made wrongly. It is a one OFF. The damage is immediate and can be seen and felt straight away.
The financial product like insurance and investment is complicated and "mistakes" can cost the customers heavily in the future.Also you can say 99% of the population has no idea or clueless about them.Recent financial literacy survey supports this. The decision of the customers depends heavily on the recommendation of the agents, ie. right or wrong depends on the insurance agents. You can see how important the role of the agent here, his role is either for the customers or for himself or herself.But sadly agents invariably choose his or her interest and not the client's. And this is here that high commission has the greatest influence on the agents.This is what is wrong.
Decision is made by the cleint but with the help of the adviser. It is not what you are trying to imply that the cleints are clever to know what is good or not good. It is not supermarket or pasar malan where you pick the product off the shelves . These products require the help and ADVICE of the adviser. It is not caveat emptor either.It is advisory.

Zhumeng:o); March 29, 2008 8:08 PM
Anonymous said...: When i bought revosave from ntuc the agent didn't tell me all that i needed to know. Even she did How could i make a good decision when I couldn't understand what the agent was talking.
My impression was that i stood to gain from the refunds and over the long term it would be substantial to meet my saving needs.
In fact i had no idea what i bought. I was not told about the return. You would say that it was my fault for not asking questions but i didn't know what questions to ask. I was not clever. I am a little bit now but still need help.
The agent should have been honest to tell me that the product was not suitable for me becuase i was looking for saving plan without insurance. But some how I succumbed to the agent's persuasiveness. I bought only to regret after another friend explained to me in a very clear language the downsides and upsides of the product.With the advice and help of my friend i canceled the policy sacrificing a loss. My friend in fact advised me to complain against the agent and get the full refund but i was a afraid of making trouble for myself. I am more wary of roadshow agents now and would avoid them. I raise the question here, "Was the agent honest in selling me the product when I was looking for SAVING PLAN?" Yes , it is saving but is it the right saving plan that would benefit me most? Or was i short changed?; March 29, 2008 9:08 PM
Anonymous said...: AN ETHECAL CASE WITHIN THE INSURANCE INDUSTRY:

on 2 Feb 2002, I invest the UOB Life Guarantee Cash Plan.

Before I submit the proposal form, the Invest Shop evaluate my financial position by answering a questionaire.

A form - MOST (Mapping Out Strategies for Tomorrow) was then signed by me and submitted.

The contents of the MOST form stated:
"You are about to go through the personal financial mapping programme with a trained UOB Rep. The information that you provide on your investment objective, financial situation and your particular needs will help us in determining a suitable investment or insurance plan for you. Partial or inaccurate incompletion may result in a plan that is not appropriate to your needs. You should only undertake transactions when you fully understand the nature of the contracts into which you are entering and the extent of your exposure to risk."

Under the MOST form, client has to "thick" the following option:
- I wish to receive product advice only
- I do not wish to receive any advice from my UOB Rep.

I received 4.21% yield since 2002
with guarantee capital wihtout regret!; March 29, 2008 10:50 PM
Unknown said...: Zhumeng you are over-filled with anger and you have simply showed it in your anger filled comments. I understand when a person is too angry, he won't be able to listen to objective views.

First of all I am not an insurance agent, so I am not defending them.

Secondly I am here to read about Mr Tan's wonderful advice on insurance and investments, but too many people come in here to vent their anger and dissatisfaction of insurance agents and it just spoils this positive learning environment that Mr Tan has created.

Thirdly I assume you are an adult and an adult is able to make a decision based on his own judgement. Just like Mr Tan is giving you advice in this blog, it's up to you whether you agree or not. He cannot force you to do everything he says. Who knows? Mr Tan may not be always 100% right. He himself wouldn't guarantee that he is 100% right.

Lastly, an advice is to be taken with caution. If you married a women based on other people's advice and regretted it years later, who is to be blamed?

I wish you all the best.; March 30, 2008 4:33 AM
Anonymous said...: After an examination a doctor tells you that an operation is required becuase of this and that. The doctor doesn't ask if you agree with his opinion or his finding. The doctor will ask you to decide on his recommendation, ie. to go for an operation or not to go.
Similarly an insurance agent should not ask the cleint whether he agrees with his findings but to decide on his recommendation.The cleint cannot say i disagree that this amount is incorrect but a smaller amount is what he needs and therefore a whole life is more suitable .In this case the client should be warned that any thing other than the finding is detrimental and the agent be absolved from responsibility.; March 30, 2008 10:09 AM
Anonymous said...: hi Benjamin,sorry to have been incurred your wrath. No, Ben, i am not angry. Maybe, i got carried away in my eagerness to debunk some misconception about insurance agents.
You see, I have no quarrels with agents earning commission provided they return in same measure. Very often they are motivated by commission than the desire to help their cleint. As a result inappropriate products 'recommended" to the detriment of the clients,eg; like under insurance, high risk or very low risk product. Agents are dealing with people's future and whether the products work for the cleint can only be known in the future.Unlike other products , like an electrical appliance, it can be tested right away. If it is faulty it can be returned and exchanged but not financial products like insurance.Worse, cleint don't even know and therefore become an easy victim of unscrupulous insurance agent. You can test your friends whether they know what they bought.
Maybe they can tell or use words like wholelife, endowment, protection, saving, ILP and so forth but beyond that I don't think they know.It is crucial that you get right product and right amount and that is insurance. Insurance agents don't care at all and that turn them into rogue agents. There are many cases of malpractices by agents not reported but from anecdotal evidence they are rogues and commission and greed have turned them into rogues.
I advise engaging honest and competent and regulated professionals like advisers with CFP qualifications. These professionals are like CPA or CFA, they can be deregistered or barred from practice if they are found to have committed professional misconduct.They have internal disciplinary mechanism to deal with them and serious cases are referred to the court.
So, it serves you well to engage a professional.

Zhumeng:o); March 30, 2008 2:17 PM
Unknown said...: Zhumeng, I understand your point that insurance and investments deal with a person's future and is a very important issue. However, pls pardon me, everything that is sold in today's market is FOR THE FUTURE and it's importance depends on the end user's definition, not the service.

Can you tell me a product that can alter a person's past? Like in the movie "Back to the Future"?Can I buy a product off the shelve that can alter my O level grades taken many years ago to all A1s? No there isn't. Therefore every product is for the present and beyond. And every product has the opportunity to change a person's life however big or small.

Today if Mr Tan writes an investment book. The cover of the book says it has all the secrets to become financially free. Based on this bold statement I buy the book and follow EVERYTHING that is written inside. After 5 years, I realised I lost $100k of my hard earned money. Can I sue Mr Tan?

Another point is that insurance agents should not take the blame, it's the insurance agency that is responsible. This is because it is the insurance agency that is offering the platform for the agents and is the one who provides the insurance contract itself. It also decides the commission scheme. ie. it's the insurance agency that ditates more commission for selling life than term.

Don't prosecute the fast food crew for asking you to upsize the meal, blame it on the company that instructed the crew to do so. If the burger you bought made you fat, can you blame the counter crew who sold it to you?

I hope this will be the last time anybody posts defamatory and vengeful remarks of insurance agents. If you feel that the agent has cheated you, pls write to CASE and make a police report, don't whine here and spoil everybody's learning mood. Nobody can learn under anger and negative mood. Thank you.; March 30, 2008 9:41 PM
Anonymous said...: Hi Benjamin, I totally agree with u...whiners always spoil other people's days!; March 31, 2008 9:56 AM
Anonymous said...: I do agree too . it seems both are whiners too. you whine becuase you find others' comments as whinings. Maybe you need eyesight checked because i am puzzled .There is no complaint . It is full of criticisms, yes.They do spoil your days because they spoil your interest or someone's close to you.
And zhummeng is just doing that. he is educating to create awareness of
malpractices that are so rampant today.
This blog is to educate and education is to fill an empty head in order to open up the mind. But if you refuse to be filled then the mind cannot be open to see things in the right perspective. Then you will be suffering from mental block.; March 31, 2008 12:33 PM
Anonymous said...: Benjamin, you are the one who is whinning. In your defence of the insurance agents you have used the wrong examples. You have used a tangible products which Mr. Zhumeng said they can be checked for its efficacy whereas financial products cannot. Another issue raised by him is the malpractices by insurance agents and not commission.The commission is a reward and whether agents deserve to be paid commission for the kind of work done by them,eg. form filling and some legwork and nothing else is the issue. Another issue is conflict of interest. This is reason insurance agents are condemned. If you want to see and read nice things about insurance agents i don't think you have come to the right place. This is an open blog where ideas and views are aired to educate .; March 31, 2008 7:37 PM
Unknown said...: Hi, I don't think I have an eyesight problem. Extracted from Zhemeng's first comment, "it is a big bullshit and they are great liars if you find that they ARE NOT QUALIFIED AND COMPETENT."..."Don't you think they are dishonest and they are telling lies?"

I don't think it is good to scold people bullshit, liars, unqualified, lousy etc. If the agent really did all these things to you and you are so angry and want the agent to serve a life sentence in jail, I suggest you file a police report. Thank you.; March 31, 2008 9:29 PM
Anonymous said...: It's getting childish. You are very agitated.I think we stop here.You are not my target.
Thanks , Mr.Tan. for publishing our exchanges.
I clean up the mess.
Zhummmmmmmeng:o))); March 31, 2008 11:16 PM
Anonymous said...: It has been quite obvious and what is written prove the point.

Why whack the agents out of shape when they came in to write.

Now the agents don't even bother to write their views, even if it is honest view.

I remember there is a Thomas Phua, we do not see him writing now, I think he has quite some balanced view.

But those agent haters will just come in and whack whenever the wrote, like Adrian Khiat too.

Whether a view is balance, it speaks for itself.

Contributor like Zhummeng how he dislike insurance agents are quite evidence.

I hope this forum can be a honest platform for exchange of views.; April 01, 2008 7:16 PM
Anonymous said...: I want to correct 7.16pm. I don't hate insurance agents because they are insurance agents. I don't hate but only expose their malpractices. Is it wrong? I will refute views that I think are misplaced. Likewise I welcome anyone to challenge my views. Please do. It is exciting. It turns me on.
Lest falsehoods become truths let's nip them in the buds.

Zhummmeng:o); April 01, 2008 11:00 PM
Anonymous said...: Instead of running away they should stay and "fight'if their views are sound. The problem is that their views cannot withstand scrutiny and full of fallacies.
How could they be advisers if they are not sure and confident?; April 02, 2008 12:37 AM
Unknown said...: Hi 7.16pm. You are correct. I think this will be my last post in this blog. Or maybe I will not come into this blog anymore because it has turned into an "I want to complain about the agents" complain forum.

Zhumeng and all the other agent haters, I feel sorry for you if any agents really did hurt or cheated you. I hope you are able to get justice. After so many comments that I have written, any readers here can see that my stand is neutral and that I hope this blog can serve as a positive learning classroom about insurance and investments. It is an educational blog. Any negative and abusive criticisms about insurance agents are not needed. In fact it disturbs the whole classroom of readers here. Please be polite and think of others.

Imagine this scenario. A group of people gather every morning for a jog in the park to become more healthy. One jogger came in and light a cigarette in the mist of everybody. The whole healthy environment is destroyed. This is exactly how I feel now. We are reading and learning, and almost everyday somebody will come in and scold the agents. Refer to the very first comment and one can easily see how offensive and abusive the language is used. If you die die must share how the agent has ill treated you, please do it in a very polite and educated manner. In anyway so far, the type of language used in the remarks is in a very hateful way.

If you want to smoke, please go to the smoking corner because nobody wants to smell your smoke. Like wise, if you want to complain about insurance agents, file a police report so that you can do Singapore justice by jailing that crook. If the police don't want to hear your story, why not you call up the insurance agent that cheated you and scold him directly? Isn't this much more straightforward?

Mr Tan, I hope you can stop future offensive and abusive remarks from readers, else most probably this may even be my last visit to this blog since I don't want be affected by unhappy and angry people everyday.

Thank you. My last post.; April 02, 2008 12:58 AM
Anonymous said...: Instead of whining and behave like crybaby you should defend and commend the good work of insurance agents if you can find.
On the other hand there are critics of insurance agents. Not that they want to criticise but they cannot be bystanders watching the public being abused by insurance agents.Daily there are thousands of consumers being abused without them knowing it.They have been sold expensive and rubbish products.Generally the public is clueless. Exposing the malpractices of insurance agents should help the public to be wary of the ruse used by them. This is creating awareness and it will benefit the public tremendously. The problem is that the critics are seen as bashers of insurance agents.
Mr. Tan has been challenged many times but he took them into his strides. He is very gentleman. His blog is successful because he is open to views . Thousand visit him daily.You should emulate Mr. Tan and stop whining.; April 02, 2008 10:00 AM
Anonymous said...: It seems some of the posters think that "honesty is not the best policy' becuase the pocket suffers. They attacked Zhumeng for lambasting the agents for dishonesty and for not putting the clients' interest first.
They cited a few unfair examples of other trades to justify their arguments, that insurance agents should not be whacked becuase other trade practise too. Are these posters'interest being whacked too?; April 02, 2008 1:03 PM
Anonymous said...: Mr Tan, it is sad that there are people with balanced view like Benjamin is not coming to contribute to your blog with presence of so many who are so negative and one sided in their views.

I find it pointless to visit too often too.

Good advices were damaged by poor contributions.

It does not give those a good impression of your blog, if you allow more such people to comment in the way they do.

Though I know you may not agree, but by letting them vent their frustations, it make this blog too critical of the industry as a whole.; April 04, 2008 5:51 PM
Anonymous said...: There it goes another one who thinks his or her view is balanced and others' are negative. In the first place what is negative? To these guys negative means running down their views. But if their views are sound they shouldn't be afraid. They must welcome another view and this is called balanced view and not just their views only.
It is not venting frustration but shooting down or rebutting your views which we think are erroneous and flawed.
If you like reading some happy ever after stories this is not the right place. This is educational. Here you get both sides of the story.Here we read about insurance and finance. We read about the ruse
of insurance agents and the disguised financial consultant. We create awareness so that buying public are more wary of insurance agents. Never before so much has been exposed of the malpractices of the insurance agents. We thought these "angels" have been helping us instead they have been 'defrauding ' us. without our knowing it. So how can you say negative things about these people who posted and exposed the misdeeds of the insurance agents.
Are you an insurance agent?; April 04, 2008 10:27 PM

Friday, March 28, 2008

Honesty is the best policy

24 comments:

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