Hi Mr Tan,
I'm writing regarding a recent blog post "Full refund of premium under ILP". I was surprised and envious when I read this.
For the past 6 months, I have been pursuing X for two ILPs I bought a few years ago. I wanted to track my investments and insurance, but was not given the full disclosure of fees involved.
The total contribution I make every month goes to 1) policy charges, 2) mortality charges, 3) insurance, and 4) investment funds. The fees and charges were not disclosed to me explicitly. I learned about these fees only very recently when I started to track my investments. I realised that the numbers cannot balance month to month. Then I read the policy booklets in detailed, and learned of all the extra charges.
X was also not able to give me the number of fund units that I buy every month, after the deductions of the charges. Hence I am unable to track the performance of my investment. I tried to contact them several times. But every time I'm told this is
The company sends a yearly statement on the "Average" no. of units I have, and I'm told that is the only best info they can provide me. Unfortunately, it is not clear how many units are deducted for charges, and how many are added. I've spent many nights on Excel spreadsheets, running the statements, the info they provide, and the amount deducted from my bank. I tried to balance the numbers to the current units I hold, to no avail.
I get a lot of pressure from X and my financial advisor. They told me I'm being unreasonable when I ask for the funds' units every month, and that no insurance or fund companies can give me this information. I cannot imagine being stuck with these two policies for the next 36 years, not knowing where my money is going every month.
I am considering bringing my case to MAS and FIDREC. Is my request for more transparent information an unreasonable one?
I support your idea to bring up this matter with MAS and FIDREC.
The insurance company owes a duty to the policyholder to provide details of the charges and a clear statement of how the money is being invested. No policyholder, regardless of how well educated, will know what is happening, unless a clear statement is rendered each month. It is not possible to know at the end of the year from a consolidated statement.
Many insurance companies fail to provide a clear statement, and in the process the policyholder is unaware about the high charges that are being deducted. This is an unacceptable practice, from the consumer's point of view. This shabby practice cannot be condoned.
All the best in lodging your complaint.
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