Hi Mr Tan,
I came across your blog that you will help to review the life insurance policies. I attached 2 benefit illustrations
for a Vivolife policy and an ILP. My wife and I bought these life insurance about a year ago from a friend working for an financial adviser firm. Is it worthwhile to keep these policies? Both policies have a coverage of $10,000.
REPLY
The coverage of $10,000 is too low for your needs. These policies are not suitable for protection and offer a poor yield as an investment.
The ILP policy takes away 46% of the value of your accumulated premium at the end of 25 years, i.e. $102,000 out of $220,000). This is far too high. The Vivolife policy takes away 31%, i.e. $36613 out of $116694. This is high, but not as bad as other policy. According to my book, Practical Guide on Financial Planning, the fair deduction should be 20% for 25 years. If I were in your place, I would certainly give up the ILP policy now, but I am not sure about the Vivolife policy.
More important, you should read my book (you can buy the 5 book bundle at a 40% discount) to learn about how to safeguard your own financial future, i.e. buy term insurance and invest your savings in a low cost fund. You should also join FISCA and attend its educational talks.
This adviser is mad and crazy. He is NOT fit to be an adviser. He should be struck off and banned for life.
ReplyDeleteWhat rubbish is this $10K coverage?
I remember there was somebody a few weeks ago who commented quite proudly that he was very happy with his vivolife, paying no more than $50 per month for only 10 years and get lifetime coverage? That kind of premium for vivolife will only get you $10K cover. Maybe this is the same guy suddenly wake up from agent-induced coma.
ReplyDeleteDo you know the premium he or she pays for the stupid vivolife can get him or her at least $300,000 IF the salesman puts the customer's interest first instead of the commission?
ReplyDeleteI am not surprised 99% of the insurance salesmen and women would do the same as this con agent.
If you are in coma there is still a chance to wake up to this fact that the insurance agents are conning you into vivolife. There are some who are brain dead.. no help.