Tan Kin Lian's Blog: Terminate a Revosave policy

Saturday, March 13, 2010

Terminate a Revosave policy

Hi Mr Tan,
I need you advice. I have a friend who bought Reovsave last November. She paid the premium in full for the year. I am thinking if it is better to terminate the plan and do investment for the rest of 25 years. What do you think?

REPLY
Ask her to send the benefit illustration for me to talk a look. But, it could be quite complicated to analyse. I will try and see what the "effect of deduction" is for this policy.

Maybe, one way of looking at this question is to see the distribution cost. If the premium paid is less than the distribution cost, it would be better to terminate the policy and save on the balance of the distribution cost.

14 comments:

Anonymous said...: Since she has paid only 1 year it is better to terminate it to cut losses.
Don't be held hostage and languish in the poor return. Did you know the return is about 1.6%-1.8% over 25 years assuming you opt to receive the cashbacks , better known as refund of your own money, after the 2nd year.Reinvestment is rubbish... only linger your agony.
Quit quickly and get out of the clutch of this scam.
If you have been mis-sold or misrepresented you can demand the refund of the premium or else lodge a complaint with MAS.
Check your fact find forms for incriminating evidence of mis-selling and conflict of interest or no reasonable basis for the recommendation of this product relative to your goals. Section 27 of the FAA has been breached. The agent must be brought to task.; March 13, 2010 10:36 PM
Anonymous said...: Yes if it is for saving invest regularly for 25 years you will get at least 8% in a medium risk portfolio instead of con job rate of 1.6% .; March 14, 2010 12:00 AM
Consultant said...: Get FISCA to go through all the documents, the BI, the quotation, and especially the ntuc's My Financial Portfolio. The agent or consultant that did the sales supposed to do due diligence with regards to customer's financial situation, goals, needs, liabilities, objectives and the recommendation must be on reasonable basis. High chance there will be something wrong in the MFP for you to counter ntuc.

Seek refund & cancellation from ntuc. At most, pay just for the pure insurance protection for the last 4 months. Write in black & white with your evidence and also CC to LIA & MAS for their record.; March 14, 2010 1:13 AM
Anonymous said...: Revosave can only be sold by pushing, pushing to ignorant old aunties, Ah Sohs and other clueless people.It must be peddled like koyok.
Need based approach? no way that it will be recommended .No way it can meet the reasonable basis criteria. No way it can be justified becuase this damned lousy product cannot meet the protection or saving needs.
It is so bloody expensive and gives so little no sane rational people can accept.It is a conjob. It is sold by conmen and women who have no conscience.
The problem with this company is their motto of "What is good for the goose is NOT good for the gander".; March 14, 2010 9:27 AM
Anonymous said...: How can a social enterprise claim to have the interest of the consumers at heart? It is fleecing the people using the greedy agents to con with a dubious product. Is it people before profit? Rubbish..... it is commission before mission. So it is social enterprise value, say something and do another thing.
Say it louder hoping people can hear and beleive it but people know the new DNA is conmanship style..Have you ever heard their so called financial consultants being called super consultants? No! they are called super duping sales champions.... a kind of confession isn't it? So do you expect these champion salesmen to plan for you?
Yes it was born different, made different to serve the needs of the man in the street but unfortunately it fell into the wrong hands.
If you evaluate their products they seem to have been born in the marketing department, the features and benefits are designed to pander to the consumers' lifestyle fancies so that the salesmen can con them easily.It is like buying them for fresh air and love.
The cooperative values, under Mr. TanKL, were to put the interest of the people first and win-win was the guiding principle. Unfortunately, the greedy agents thought otherwise. They wanted their interest first at the expense of the consumers and then came a new management who knew how to exploit the greed of koyok salesmen.The result is this kind of products is being rolled out as standard products of the company.
You consumers be the judge.; March 14, 2010 10:11 AM
Anonymous said...: Dear Mr Tan
I've often wondered whether the whole life insurance (not term insurance) industry setup is similar to Multi-level marketing.

Please don't post this if it creates unnecessary controversy for yourself and this blog.

I'm just wondering out loud to you because of your background.

Again, please don't post if this is too controversial. The public service you render is far more important than this idle musing of a retiree.; March 14, 2010 10:42 AM
Anonymous said...: If one wants to have the following things.
1.have liquidity for emergency....invest in a saving account or money market. This is better than cashback which is PART of the premium refunded to you.Why part when you can have the full of your saving, right?
2.Have protection and cashvalue.... why not invest directly into a pure endowment instead of settling for low protection and return.
3.Reinvest in ILP without paying the spread....if you beleive you are saving the bid-offer spread you are being conned. How? If you invest all your premium DIRECTLY what is the issue of the spread. You get more units instead of only half of the premium invested.
4.If you want to do the above open a money market account and decide what to do from time to time.
5. The best part is YOU ARE NOT LOCKED IN, IMPRISONED, HELD HOSTAGE. This is true financial freedom, isn't it?
EG.. you can buy a term insurance if you need... invest in ILPs...
You save in commission and your total saving is much higher , far higher than putting your hard earned money into a scam product like Revosave.
With Revosave you are forced to languish in miserable protection and return for years. If you should need cash or have financial crunch that is the end of it....sure to lose and you might be indebted to the company which loves you being indebted becuase it means revenue and good return(5.5% interest)for the company.Does the company give you 5.5% for your policy? Imagine receiving on one hand 1.6% and paying 5.5% with the other hand.
This is how social enterprise tells you it cares for you , people before profit, do you believe it? Worse it is your OWN MONEY you saved for donkey years earning drip by drip of 1.6% interest and with one swoop like tsunami it wipes off all that you have painstakingly saved .
What a scam... it is RETROSAVE.; March 14, 2010 1:42 PM
Anonymous said...: Those who bought Revosave... terminate it...it is a rotten product that doesn't do you any good. Your money is better used in some other plans.
Beleive me you. I have analysed it and found that buyers are short changed in term of protection and return.
Remember , go for plain vanilla products and separate your protection and saving.; March 15, 2010 1:45 PM
Anonymous said...: Despite CPFlife being the best of the annuities ntuc Financial CONsultant are still peddling their annuity using the minimum sum. I wonder what strategy they are using.
I guess the strategy isn't ethical one.
Many CPF members are still ignorant and they are easy victims. But how can the management allows it knowing full well that thier annuity is inferior and benefits lesser than CPFlife?
How can there be fair dealing outcome? Isn't top down fair dealing outcome guidelines the responsibility of the CEO?
The CEO cannot claim ignorance, right? It is mandatory to conduct due diligence on their annuity product vis a vis CPFlife.; March 15, 2010 8:21 PM
Anonymous said...: I have been saying the top down guidelines is a big joke.No CEO gives a hoot to it. At the best they wayang . The ceo snubbed it . MAS, don't bull. The guidelines are meant to pull a wool over our eyes, the consumers. Can't beleive a superior product like cpflife is blatantly ignored. What fair dealing outcome for consumers when the insurance companies are allowed to push their inferior annuity to con consumers.
The ignorant and clueless consumers are really conned with the blessing of MAS.; March 15, 2010 11:42 PM
Anonymous said...: Report the ceo to MAS for not carrying out but talking about the social enterprise crap only.; March 16, 2010 9:50 AM
TT said...: This comment has been removed by the author.; June 01, 2014 6:11 PM
Tan Kin Lian said...: Send email to kinlian@gmail.com; June 03, 2014 12:06 PM
Anonymous said...: If currently have spare cash which is not needed in the next ten to fifteen years, and also not shares or bonds savvy, will it be advisable to park these cash into revosave, since the returns on revosave over ten years are better than ssb and all fds.

Thank you.; February 19, 2017 5:29 PM