Mis-information of consumers

A policyholder wrote to me as follows: "I sign on a ILP in 2005. I paid $100 every month through Giro. The agent told me I can only withdraw after six years. So far I had invested $36,000 but the return is $27000."

This statement shows the poor state of affairs in Singapore. After paying the premium for 3 years, the policyhholder is still not aware about his contractual rights under this policy, namely:

> He can withdraw his ILP at any time (and not after 6 years)
> The high charges deducted from his premuims represents a certain proportion of his loss
> He does not know that he can approach his insurance company to get an explanation

The Benefit Illustration given at the point of sale should provide a clear explanation to the policyholder. But, most of the Benefit Illustrations are very confusing.