Recently, I received my annual bonus statement on my life policy. I was disappointed with their cut in my bonus from 1.5% to 0.75% (50%).
From what I understand, the premiums are been pooled together in a participating fund and the investment allocation is considered conservative type. When I see this 50% cut,I am wondering am I aboard on a roller coster?
I have received my bonus statements from other companies, but some did not cut my bonuses at all and for others, it was only a minor deduction.
May I know is there anything I can do?
REPLY
You can write to the newspaper or lodge a complaint with MAS. MAS should realise that their governance framework is producing this type of outcome.
This is another proof of the lousy par products.
ReplyDeleteThere is NO company that can give a decent return,
NONE. When I say a decent return I mean the lowest that is enough to beat inflation like 4%.If the par product gives you 4% it is just the return of your capital in real value, ie. NO GROWTH. What if you get 2.5-3% after 30 years, this is rotten.You are not accumulating at all, no growth.
So, Never, never ,never , never, a thousand times never buy par products like whole life , endowment and anticipated cash backs and also wholelife in the hybrid form like regular ILPs.
Anon 11.04 pm
ReplyDeleteSo what products currently can give a decent return of 4% (to beat inflation) or more for 30 years? Please don't include stock and property.
Lodge a complaint with MAS to let them know the life insurance industry is worser than the banks selling structured products. They suck and nimble away your money slowly without you knowing it. It is not so obvious so many policyholders think it is normal.It is a slow death. Its effects are worse because after 20-30 years time you wake up to realise that you have been cheated by the insurance agents and the company. You have lost the TIME which is essential to investing, whether it is in life insurance or ILPs or UTs.
ReplyDeleteHope policyholders will use FISCA to review their existing policies before it is too late.
I bet that your agents did a screw up job. It is time to take your trusted agent to court and make him or her disappear from the industry.
Anon September 03, 2009 9.49AM,
ReplyDeleteAbsolutely none other than equities.
This is the stark truth..No pain no gain. You are rewarded for taking risk.
If any insurance companies say their products can give 4% and above there is risk. They too invest your money in equities although a small amount to give the 4% and the rest they keep to smooth your bonus next year. Only 4% even though they make more.Another risk is the lock in risk.
Unfortunately, out there these insurance agents are NOT qualified to help you to get more than 4%. It is easy to have 6%pa if you know how. Salesmen sell only. Investment advisers advise ,structure and manage the portfolio for you.
Anonymous,september 03 9:49AM,
ReplyDeleteNothing can give you 4% without risk other than CPF. The riskiest is FD then comes CapPlus from ntuc then HSBC, TMAsia,PRUand AIA. The least risky is taking risk and the rest is guaranteed loss.