Thursday, November 26, 2009

Review of existing life policy

A young person sought my advice on her life insurance policy. Her father bought the policy for her many years ago and now wished to transfer the policy to her. The cash value is lower than the total premiums that were paid. She asked for my advice on whether to continue or terminate the policy. She asked the insurance company to give a projection of the future cash value, but they declined, citing that the future bonus is uncertain.

I advised her as follows:

a) Ask for the projected cash value for each of the next 10 years, based on the guidelines given in this FAQ.
b) Insist on getting a projection of the cash value, even though some part of the projected value is not guaranteed
c) To pass the projection to me, for a review.

It is the duty of the insurance company to give the requested information, so that the customer can review the existing policy and see if it is appropriate to continue the policy. I will ask a volunteer in FISCA to carry out the review for future cases, after the process has been establised.
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5 comments:

Anonymous said...

Great work....insurance agents' sale will now be put under the microscope to check for mis-selling or inappropriate recommendation.
This is a warning to agents that their 'unethicalness or incompetence ' will be found out sooner or later. They can't escape.

November 26, 2009 10:26 AM
Anonymous said...

Consumers, get your existing insurance policies checked for hidden mis-selling or some rubbish that your agents never told you before it is too late. Don't wait until it is over 10 years. You will be in dilemma to cancel or to keep.Either way you will lose.
So when FISCA is ready to review your policies please don't wait . Find out whether that agent you trusted so much has betrayed you or conned you. It is for your good. Or are you afraid to find out the truth?

November 26, 2009 9:04 PM
Anonymous said...

Those people who bought revosave must have their policies checked before you regret for the rest of your life.

November 27, 2009 11:07 AM
Anonymous said...

Let's give our support to FISCA. If not the insurance agents will get more unethical and unscrupulous.Let's fight this together and eliminate the conscienceless insurance agents.

November 27, 2009 2:53 PM
Anonymous said...

There are ntuc agents still pushing their annuity. They know that CFPlife is better and yet they die die must con their customers.I don't know what falsehood or ruse they are using to con their customers. They should be reported to MAS too. Someone inside must blow the whistle against these agents. They are tarnishing the image of ntuc as built by Mr. Kin Lian.

November 27, 2009 7:34 PM

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