My friend sent this joke to me. "Your insurance agent sells life insurance to help you plan for your retirement. However, the policy gives such a poor return that you cannot afford to retire. Actually, the agent is planning for his own retirement from the high commission that he earns from the policy."
Note: This joke does not apply to term insurance policies and life insurance policies that pays low commission.
Isn't this joke very similar to what is happening around us? When our ministers said that we are having a golden period and our future is "shining", aren't they referring to themselves having a golden period with multi-million dollars salary and their future shining with their income outpacing inflation by a few thousand percent?
ReplyDeleteYes, it is true when insurance salesman tell you they want to plan for you they are telling you lie. They are planning theirs.
ReplyDeleteJust try those agents at the road shows. Ask them about the commission they recieve from the product they are trying to sell to you.(there is nothing wrong asking them; they are required by law to disclose to you)
You will not be surprised that it is more than 130% plus of the premium you pay. Now you see, why your whole life return is so miserable when you consider the company's profit and other expenses.
Yes, that's why I am more careful not to be taken into the endowment and whole life policy trap. I have a whole life policy taken years back, and the cash surrender value is still lesser than what I have paid for the premiums.
ReplyDeleteBetter invest in stock market with high dividend yield stock and get better returns.
To create more wealth for themselves do you know what insurance agents would do when changing a light bulb. One would unscrew the bulb and the other would break it.
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