Dear Mr Tan,
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.
Today another agent explained to me that this ILP will not make any gain for the next three years. Since I have a living policy which muture at 65, he reconmented a RevoSave Policy, which can earn bonus and insure for permenent disablity and death.
I am 58 year old and want to save for my retirement. I found that I rather pay the similar amount to the RevoSave. He told me I can withraw the ILP anytime, it is true? Shall I terminate the ILP and take the RevoSave?
REPLY
The Revosave is not suitable to save for retirement, especially for someone at your age. It gives a poor return. You should continue with your existing ILP.
The new agent is trying to "twist" your policy, but getting you to terminate an existing policy and take up a new policy (i.e. Revosave) so that he can earn a high commission on the new policy. You should ask the agent to explain how much commission he can earn from the new policy.
Here is an explanation about twisting:
http://tankinlian.blogspot.com/2008/08/understanding-twisting-and-churning.html
You should lodge a compliant with the insurance company or Monetary Authority of Singapore about the unethical advice given by the agent.
A complaint must be lodged with MAS or CASE for your case. The agent is not only unethical he is also the worse of his kind, unqualified and incompetent. It is twisting(illegal) and if you are not careful your retirement will be twisted away.
ReplyDeleteHave you any idea what is this revosave? Did you know that you have to pay the premium for minimum 15 years and get a return of miserable 1+%. If you don't PAY till maturity you stand to lose a lot.Remember you are 58 and I doubt you will pay premium till 73.
The 'biggest" bonus is at maturity and this bonus makes all the difference to return which is already a miserable rate. I bet you will lose it. It is a 'bluff people ' product. If you are twisted to revosave it is like jumping into the fire or committing suicide financially.
Keep your ILP. Your ILP shows negative return because of the current market situation but if they should rally, it won't be long, you will see big gain.
Meantime, you should avoid all these agents from this company. They have nothing to offer you.They are eyeing your hard earned money. From your story, you can see how unethical and greedy they are and worse they are incompetent and unqualified.
You should report this to CASE of how you have been misrepresented by
the first agent and about to be twisted by the second agent.