Hi Mr. Tan,
Recently, I bought a whole life policy from a particular insurance company. I paid them a year of premiums in advance already. However, 4 months into the policy, after reading your blog and doing some self reading, I decided to end this high cost product early. My agent informed me that I will not be able to get back the future 8 months of premiums that I have paid earlier. What should I do now? Can I complain to FiDREC?
REPLY
I think that you have paid an annual premium under the policy. There is usually no surrender value, if you cancel the policy during the first two or three years. It will be difficult for you to argue that you are entitled to a refund of 8/12 of the annual premium on termination after four months. If you like, you can try FiDREC and see if they agree with you. (Most likely, they will not take up your case).
Hi Mr. Tan,
Thanks a lot for your kind attention and input you have given me. I greatly appreciate it. Please continue with your great work in educating the public about the pitfalls and truth with regards to insurance products. I was also "awakened" to all these after reading your blog and website! Guess i have treat this experience as a painful learning lseeson.
If your agent is an insurance salesman change to an adviser.If it is a consultant change to an adviser. If it is an adviser change to an honest adviser. If it is an honest adviser change to another honest but competent adviser..... and throw away the dumb wholelife plan and buy term and invest the rest.
ReplyDeleteAlso watch the videos below.
Whole Life vs Term
http://www.youtube.com/watch?v=yQZ1285SkgY&feature=related
Susie Orman – Life Insurance
http://www.youtube.com/watch?v=sGDgYLCpnDo&feature=related
Term vs Cash Value Life Insurance
http://www.youtube.com/watch?v=7zGRDIVKUh4
You should complain to FIDREC or CASE for refund of the prorated premium.
ReplyDeleteBest is to MAS.I am sure many are in the same situation as you