Hi Mr. Tan,
I have been reading your articles on the high costs of whole life insurance. Could you help to comment on the below quotations from Income for a 10 yr and 20yr Vivolife policy? I would like to know the explanation of distribution cost and effect of deduction using the below.
(Details removed)
REPLY
My advice is given in my blog:
http://tankinlian.blogspot.com/2008/09/advice-on-vivolife.html
Please read my blog and website for the information:
http://www.tankinlian.blogspot.com/
http://www.tankinlian.com/
Don't buy...it is a whole life product with rip off commission.How do the commission and other cost affect the protection and return? High cost means low protection and return, right? Why do you want a limited pay product? Did you know the probability of something happening to you is about5% in your early years? Why pay so much?
ReplyDeleteDo you know that you will NOT keep it to whole life? Why? the probability is 1% and the insurance company will find way to ask you to STOP and convert to annuity. They will give you 5% more
to your cash value but he company stands to SAVE by at least 70% if you should die.
Study the plan properly and don't be foolish and get conned by this type of product. The company isn't sincere about what they sell to you
and so is the insurance agent. They just want your money....they are not interested to help you.
Let us take vivolife apart and examine the rubbish inside this product.
ReplyDelete1. Why do you think there is a need for 125% guaranteed in the first 15 years?
Because unlike many ordinary plain vanilla WLs it is unable to accumulate fast enough bonus to increase the protection.It is therefore thrown in to make up so to bluff you that you are given something extra, which is lie.
2.Do you need retrenchment waiver of premium and 6 months only?
This is the LAST thing in your mind
when you get retrenched. There are lots of many urgent things like mortgage, loans, living expenses to think of. This insurance might be even surrendered for the cash value to pay for other bills. Don't be lulled into a FALSE sense of SECURITY that vivolife can give you.. The most important plan a true and real financial planner will advise you is an emergency plan to cover ALL those urgencies in the event of retrenchment so that all other insurance plans and not just vivolife will not be affected. So is this feature of vivolife important or just a gimmick to distract you or fool you? In the first place if you have gotten a good and honest and competent adviser the retrenchment benefit is a rubbish
3.Accident benefit? This is a real bullshit which is so dirt cheap and you can afford alot more if that is your concern. Don't tell me you buy for this? This is again a false security feature to fool you
4. Annuity conversion? this is biggest fraud insurers have used to STOP you from keeping till you die. Why? the insurers will save money , as much as 70% of the proceeds if you convert to annuity. You think they are so good to give 5% more. Actually they are trying to save themselves from paying more by offering you 5%. You can compare the the protection value and the cash value to see the BIG difference.Giving you 5% more is peanuts compared to the saving.
Don't be fooled by this feature and if you have a WL and if you need money for retirement sell it to your children or cash out it some and leave some to continue until you die.
If not sell it to a LIFE SETTLEMENT
BROKER and you will get more than 5% of the cash value much more than the insurer will give you.
5. Lastly, when you buy a limited pay WL you are NEVER FREE from anything. a)You have worries about the huge premium for next 10 or 20 years. b) you worry about having not enough coverage and money to provide your family if you should die. c) you worry that it is not accumulating enough at a decent rate of 5-6%, and only half the return .
So you can see the advert is dishonest and misleading about full protection , freedom to enjoy life or free from worries. The truth is your worries begin the moment you take up the plan.
My friends , examine the above points thoroughly before you get conned by your insurance salesman.
Another point to note is, all other whole life products by other companies are scam too. The best is to avoid WL and I assure you will have peace of mind.