Dear Mr Tan,
When I started work, I was introduced to an insurance agent. The insurance agent told me that I should buy a life insurance – one that can protect me and my family financially if anything should happen to me and if nothing happens, it served as a forced saving with good returns.
I was concerned about the non-guarantee return portion and was assured that in the history of the company; they have NEVER reduced the non-guarantee portion. It was divided into guaranteed and non-guaranteed portion to meet MAS guideline. I asked several insurance companies to quote me the same type of policy with the same coverage and bought one with the highest monetary return.
Throughout the years that followed, I started accumulating insurance policies for my husband, my children and myself from different insurance companies. At one time, I was paying $1,000 per month for my whole family’s insurance policies. I told myself that I am saving for my future, my children education, my retirement.
In 2003, I started receiving numerous letters from my insurance companies announcing that they would adjust the non-guaranteed returns. Some insurance companies even adjust their returns (downwards) every 6 months. The amount I thought I could accumulate for my retirement was substantially reduced by 30% to 40%. I had NEVER once default my monthly payment but the insurance companies did not fulfill what was promised to me at the point of sales. I was disheartened and felt cheated.
I told myself to hold on until the ‘break-even’ point. But within 3 years, the break-even point for most if not all my policies were pushed from the 12th year to the 15th year then to the 18th year.
I decided to terminate ALL my insurance policies for my family to cut my losses. By doing so, I lost more than 60% of what I had paid for those policies. I took back $20,000 and lost more than $30,000 for those policies that have not reach the 'break-even' point.
The insurance companies ask my reason for termination. When I told them about the reduced return, they told me that insurance was for protection and not for returns (saving). I had to remind them that returns (saving) was my consideration for taking the policies.
Later, I was persuaded into purchasing Mini Bond by the relationship manager of a major bank, who claimed that it was a high return and safe product. I bought the product. When Lehman Brothers collapse in 2008, I lost all the money. I was once again dubbed and conned, now by the bank!
I have learned my lesson. I do not trust anyone - insurance company or bank. I have lost my family and my life saving for being too trustful. I am so traumatised by all these that I now keep all my cash at home; as I will never know which bank will go bankrupt next. I just hope, from the start someone had told me not to buy insurance policies with saving element which was mentioned in Mr. Tan’s book.
- ► 2013 (302)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
09/20 - 09/27
- RED Portal (Real Estate Data)
- Free market (4) Access to information
- Misleading ad for single premium policy
- Hong Kong investor gets help from the Consumer Cou...
- Risk of signing blank forms
- RED Portal (13) - Popular Places
- Control over reckless bankers
- People in charge really don't care
- Survey: New HDB flats
- Unfair treatment of consumers
- Lost trust in insurance companies and bank
- Free market (3) - A fair price
- Survey: HDB Resale Flat
- RED Portal (12) - Rent your property
- Banks' usury practices
- Financial regulation in UK
- Make Medishield available without underwriting dur...
- RED Portal (12) - Concourse Skyline
- Free market (2) - a regulated market
- Free Market (1)
- A bad culture in Singapore
- Worrying lesson from Japan
- Slow recovery of global economy
- Express bus in Singapore
- Use "funny language" to confuse the policyholder
- President Obama's speech to the United Nations
- Whistle blower of a rating agency
- Emphasis on Growth is misguided
- Long wait for a bus
- RED Portal (11) - Compass Height
- Self insurance for health
- RED Portal (10) - Top BMP, AMX, Popular Places
- Unfair reduction in bonus
- Highest life expectancy
- Difficult and costly to get a taxi
- RED Portal (9)
- Invest in stocks for the long term
- Work close to home
- 14 day free look period for insurance
- Animal Farm - a production by SMU students
- FISCA - assistance to consumers
- Convenience of a car
- Never buy on the spot
- The dubious value of "talent"
- Medishield - MOH misinterpreted my suggestion
- Car sharing using electric vehicle
- Bankers returning to bad old ways
- Views on Financial Planning book
- Is the automated vehicle safe?
- Shape Quiz
- Clubs for the jobless in America
- Learning from facts, not beliefs
- FISCA - Verification of Financial products
- Protecting consumers from scams
- Using subsidised wards (B2)
- Think cooperation and win-win
- YOG Quiz
- FISCA volunteers - write complaints to Police.
- RED Portal (8) - Search by sector
- Role of public and private sectors
- Make traditional policies good for consumers
- Arbitrary decisions on health insurance claims
- ▼ 09/20 - 09/27 (63)
- ► 2008 (2105)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)