Monday, September 08, 2008

Advice on Vivolife

Hi Mr. Tan,
You must be familiar with NTUC Vivolive. An agent tried to sell it to me...Is it of any good value? It seems to be a whole life policy.

REPLY
You should ask the agent to explain the following figures to you:
1. What is the value of the premium accumulated at 3.75% and 5.25% after 20 years or at age 65 ?
2. What is the projected cash value of the prolicy after 20 years or at age 65
3. What is the percentage reduction from the value of the premium represented by the cash value?
4. If the percentage reduction is more than 30%, the policy is expensive.
5. What is the amount deducted from your policy as distribution cost (mainly to pay commission to the agent)

Read this FAQ:
http://www.tankinlian.com/faq/true.html- Hide quoted text -
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2 comments:

zhummmeng said...

Vivolife is a limited pay whole life covering critical illnesses.
Why are you buying? What is your concern? If your concern is REALLY CRITICAL ILLNESS can you afford to cover adequately and fully with vivolife? Will buying enough put a strain on your finance now and in the future? or Are you buying it because agent talked you into it and bulled you that you need it in old age or it is saving plan?
or The agent said the return is better than the bank after 35 years at 3.7%? Did he or she tell you that inflation is going to be 3.5-4% in the long term?
Please don't let any of the above take you for a ride because;
1. You will not have enough because to have enough you will be spending a lot of money. And if you are young you are spending too much for something which has a probability of 5% happening.
2. The bank rate is NOT a bench mark but inflation is. A decent return is at least 3-4% (6-8%)above inflation.
3. You don't need it at old age if you have a good H&S medical.
4.Less than 5% of policyholders keep it to old age (MAS website ) because VERY FEW people can afford to leave a legacy and VERY FEW people can afford to keep it at old age.They need the money for retirement.
These are some of the reasons why you should not fall into the trap of whole life products. So don't waste money if you foresee problem ahead.
More affordable is buy enough CI term insurance at low cost and yet it serves you well. THIS IS INSURANCE AND IT IS TO PROTECT YOU WITH ENOUGH MONEY WHEN YOU NEED IT MOST.
Not buy to reward your agents for filling up some forms for you.
The agent is definitely working agianst your interest. He or she doesn't bother or is concerned whether you are covered ENOUGH.
Look for another adviser.

September 08, 2008 5:09 PM
zhummmeng said...

If your insurance salesman or consultant conducts a real need analysis there is a strong likelihood vivolife will NOT be recommended.What I am saying is that vivolife is not a presupposed product to address the needs that are yet to be uncovered.Nothing is known yet until AFTER the analysis.
I guess in your case vivolife was already the chosen product the salesman had in mind to SELL to you and whatever, if there is, fact finding that follows is for show and a sham exercise which these salesman agents are infamously known.
The salesman is interested to sell you a product with high commission. His or her presentation is focused on the product features and benefits and some untruths and lies
to convince you to buy.Whether vivolife can ADEQUATELY meet your needs fully is not their business so long they can close you, and the product is 'good' for them.
You have to beware of this type of
insurance salesmen.They are product pushers and peddlers.

September 08, 2008 10:05 PM

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