Wednesday, July 23, 2008

Policyholder given a misleading figure

A young man bought an investment linked policy with a saving of $200 a month. He was mistaken that the premium payable for 42 years was $33,600 when the actual premium was $100,800.

He realised that the policy did not give an attractive return. He sent this message to me:

"I think the figure I received were a bit misleading and I have asked and confirmed to the advisor. I have now terminated the ILP. I have paid S$6400 and will only get back around $3,100. I guess this is a lesson learned for me. Anyway, I hope that you will keep educating people from your blog and site so that the public will be more aware about their financial planning. "
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1 comment:

David said...

Insurance now are like those structured products sold by banks. Promise (even in writing) the "good" stuff but misrepresent/hide the bad ones, leaving the poor buyer to discover it for themselves and only after a long while!
Insurance and banks now are very unlike in the old days.
I think even if everybody complain, MAS might not even have the will and resources to deal with it. They obviously are aware of the problem, taken some actions, but there is not much change, if any on the ground so far. Maybe as a last resort they should ban such products and return to the simple good old days!!

July 23, 2008 7:20 PM

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