Saturday, September 04, 2010

Insurance CEO quits

Read this report

My view
It is important for the top leadership of a life insurance company to be stable, so that their policyholders can some measure of certainty on their long term savings. If the top leaders can "jump ship" or make changes to established practices, the uncertainty will be bad for the policyholders. To avoid this uncertainty, consumers should take control of their long term savings, by investing in a transparent, flexible fund. They should avoid locking their savings in a insurance policy that has a high penalty on withdrawal.

Read my book, Practical Guide on Financial planning.
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1 comment:

Spur said...

Yup, fully agree with Mr Tan's advice. Take control of your long term savings. Keep it separate from your insurance!

I have regretted buying into a long-term GE par insurance product back in the early 1990s when I was clueless. Well, at least the product managed to yield 4+% for 7 years as indicated in the quotation, until the Asian financial crisis basically changed the entire industry. Since 1999 the yield has only been 1.5% to less than 2.5%.

Luckily it's not a big amount, and I keep it as a reminder against rubbish products. Every year, I stick the annual policy statement and bonus declaration on the mirror in my toilet.

September 04, 2010 3:45 PM

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