Tuesday, June 22, 2010

Pay insurance premium directly

A few decades ago, it was quite common and convenient for policyholders to pay insurance premiums to the agents. At that time, there was the risk that the insurance agent might pocket the money, so the policyholder have to rely on an agent that they can trust.

Nowadays, with GIRO and internet banking, there is no need to pay insurance premium to an agent. It is better to pay the premium directly to the insurance company, especially through GIRO.
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2 comments:

Anonymous said...

Yes, Giro is convenient for regular premium e.g. monthly.

But for less frequent type e.g. annually or semi-annual, I prefer to use internet banking or AXS.

The only Giro-paying insurance I have is an endowment bought 20yrs ago when I was clueless. The rest of insurances are term types that have cheap annual premiums and don't require monthly premiums.

FYI for readers: Try to pay annual premium if you can, instead of monthly premiums. Monthly premiums are more expensive -- insurance companies typically apply a 3.5% discount rate (or interest rate to you).

June 22, 2010 3:02 PM
Anonymous said...

Under the regulation, financial advisers are not permitted to handle cash unless it is meant for service rendered.

June 23, 2010 12:02 PM

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