Life insurance performs two useful functions:
a) Provide financial security in event of premature death or disability through the pooling of risks
b) Provide a useful service for ordinary people to pool and invest their savings to get an attractive long term return.
If it is practiced fairly, transparently and honestly, it can bring tremendous benefits to ordinary people. This was how life insurance was practiced for a long time in the past. It was useful to society.
In recent years, life insurance has been changed to be a way for financial institutions to make large share of the gains, and to offer a poor return to the unsuspecting, trusting public. The charges taken away from the consumers to pay the high marketing expenses, salaries and profits are excessive - perhaps unconscionable.
I hope that the leaders of life insurance realize that they have a responsibility to offer a fair return to the consumers who trusted them to take care of their future. It is necessary to pay for the expenses and make a fair profit, but the charges should be reasonable and the interest of the consumers must also be protected.
I hope that the regulator will make it possible for the public to enjoy a fair outcome. This will make life insurance a good way for consumers to save and invest for the future.
Tan Kin Lian
"In recent years, life insurance has been changed to be a way for financial institutions to make large share of the gains, and to offer a poor return to the unsuspecting, trusting public."
ReplyDeleteWhy did the regulators allow this to happen? Is it because they cannot control?
And for the same reasons they cannot control widening income gap (they even said it is inevitable), mark to market prices and smaller area for HDB flats, etc, etc?
Nice post. Before finalizing your Long term care insurance policy educate yourself about it. I came across this site, it seems to contain very informative and nice information and also gives you an option to compare long term care insurance cost.
ReplyDeleteThe reason INCOME was formed so that ordinary workers could be insured for very small amount. Had a number of policies during your time as CEO but now am hearing different things. I just wonder how ordinary workers now going to invest their savings.
ReplyDeleteDear Mr Tan
ReplyDeleteFor your blog readers who have invested in US dollars, and who may be looking for an exit.
At present, the US dollar is forming what looks like a bottom. They should start paying attention.
There is no way to predict the future of the US dollar though.
There are 2 broad schools of technical analysis;
a) predicting the future. This is the general public's perception
b) understanding the past and the present.
I belong to the second school.
Hi Mr Tan
ReplyDeleteHave got a quick question if you don't mind. Are insurance policies protected in the event of bankruptcy? Thank you.