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