Dear Mr Tan,
I have a AIA financial guardian policy purchased in 1990. My premiums are paid annually all these years. Last year, I decided to surrender the policy. I sent the form through the mail, as the former insurance agent has long left the company.
Two months later, I received a letter from AIA informing me that the unpaid premium has been advanced as a policy loan. The customer service hotline told me that I needed to put up a Request to change the payment of the premium to quarterly mode so that they can refund me on pro-rated basis of the APL amount.
Please advise me what action I can take against AIA if they still insist that they did not have the change of request form and refuse to refund me the pro-rated amount of the loan outstanding that they have deducted.
REPLY
It is not fair for the insurance company to impose administrative barriers that will cause you to lose money. You can lodge a complaint with FIDREC. See www.fidrec.com.sg.
You should surrender your policy and don't waste time . You are being held to ransom.. All whole life and endowment plans hold you to ransom. It is either you are not insurable you are forced to continue to pay for the lousy and fxxx products or if you exercise APL you pay SOB or Ah Long interest rate to the insurers.Convert to paid up your cash value languishes in Fxxx low return. Indeed you are caught. You should have thought about it before you beleived your dishonest insurance agents.
ReplyDeleteTerminate your policy and buy a term product without the shackles of the WL products.
There are insurers and insurance agents who advised against terminating in a time like this. Ask them if they allow premium holiday and also allowed to take your own money (cash value) out without the ah long interest rate and without paying it back.
Consumers, you are real suckers. Imagine you have to pay interest rate on your own money. And the interest rates these insurers charge you are far above the interest they pay you. You end up with negative return.
If you borrow from your policy you might as well terminate because it is on the way to termination and worse you are giving a "guaranteed return" to the insurers on lending you.
Please know what you buying and don't be dumb to trust your agents. Insurance agents must not be trusted.They don't tell you the truth.
A little bit of second opinion here.
ReplyDeleteIn future,
1) think twice if you really need to be insured. You need it, you want it, you are required by the law or you just don't know. If your answer is "you just don't know", it is critical that you take your time to study what you're spending for. Most of the people I knew who bought insurance for variance of reasons have unpredictable calculated plan to claim it on the later stage.
2) A good example is coverage again risk of smoking.
You're not a smoker. You got an insurance medical coverage against those risk. You declared you're not smoker in the contract. Your lung is cleared.
After several years with you life and your existing job, you started to socialize with smokers in pub..blah blah blah.
The next few years, you started as light social smoker. At times you don't smoke at all. The insurance contract remained declared you're non-smoker since you don't smoke regulary & the premium stay cheaper than those who declared as smokers.
Sometimes, you even bought fusion high-class cigarettes or Cigars with your credit card. Do note it's recorded.
On day you change your job, life slightly tough as the economic change too. 98% people in the working environment smoke. You started to smoke a little more than you used to. Suddenly, it happened that you got sort of BAD LUCK as your body chemistry can't take it. You got maybe lung cancer.
I would say "GOOD LUCK & TAKE CARE". As making the insurance claim would be very controvesial. Your effort paying those premium monthly or annually are waste of time felt that it's all going to the drain. Choose wisely and don't buy things you're unsure or somebody conviced you to.
3) insurance sales works in prosperous country but not in second or third world country.
Hi,
ReplyDeleteI am also wondering whether to terminate my policy- I pay $240 a month since Oct 2008 ( to be continued for 20 years)so that I am insured for $100k, under the Great Eastern FlexiLife20.
After I read this blog I am thinking of terminating the policy and buying a term insurance.
In this type of policy though there will be no repayment if you terminate before the first year. So I am considering holding on until the breakeven point(15 years) before I terminate the policy.
Please advise me on whether this is the best strategy.
Alot of insurance agents & so called bankers earn a lot from consumer ignorance. After this financial crisis, I hope everyone will wake up & be less naive. Why can't ppl just surrender their policies instead of holding on to these useless products.
ReplyDeleteI agree. Best strategy for selling insurance is not because product is good but customer is ignorant. The dumber the customer the easier to sell. Responsibility to educate is basically does not exist. Invest your money elsewhere.
ReplyDelete