Hi Mr Tan, I found the insurance information listed on your website very informative and useful. I met up with the insurance agent who has come up with the insurance plan. I am not sure whether I am paying a high premium after looking through his proposal.
I find there are quite a few plans that cover disability so I am concerned whether there is any duplication. I am not to keen to put my savings in an investment-linked policy but my friends, brother all purchase the ILP. It could be good to have one. I would like to seek your advise whether there are anything else that I should take note of.
SY
REPLY
The distribution cost is nearly two years of your savings. The effect of deduction is more than 30% of the value of accumulated premium. These are too high. Read my book, Practical Guide on Financial Planning for an explanation of these concepts.
Do not follow your brother and friends into making the same mistake with a high cost investment-linked policy.
All regular ILPs are bad or scam too like their cousins wholelife and endowment.Too much is taken from you that the the return is very much affected.
ReplyDeleteOne of the differences between traditional wholelife or endowment and regular ILPs is that wholelife and endowment is invested in 'one size fits all portfolio' and regular ILPs is the choice of the investor..This makes a lot of difference but unfortunately the cost and charges taken from ILPs are as bad as the wholelife and traditional products.They are scams.
Avoid all of them. See your financial planner to help you with a RSP plan and insurance . Use term for insurance .
It goes to show consumers are far from savvy and are still clueless about financial products.
ReplyDeleteThe truth is they are not simple. Many consumers kid themselves and play into the hands of insurance agents and insurers.That is what they are arguing that consumers are savvy and can make informed decision and therefore the ONUS lies with them to see the products are suitable for them. If it is true why pay so much commission to insurance agents for execute only service? This execute only service can be replicated by an online portal, right?
You see if the evidences of malpractices of insurance agents and the ignorance of consumers posted here are not self evident then the future doesn't bode well welll. There will be many more rampant malpractices.
Again and again same story of mis-selling is posted here. Consumers never learn? No, it is not easy to learn if they not practitioners and it is not expected. You see, insurance agents themselves are not qualified and this is the reason why they are pushing products like any other salesmen.They push for commission. They don't advise and plan for you.Anyway selling and pushing is faster to make a lot of commission. Consumers meeting their needs is not their concern.Die is consumers' business.
Don't follow blindly.Don't buy just because your brother has it.
ReplyDeleteAnyway, don't buy wholelife or limited payment wholelife, endowment, anticipated endowment in new wrappings or regular ILPs.Stay away from them and you will be safe.