Don't combine protection needs

Published in Straits Times Online, Oct 30, 2010

I REFER to Ms Pearlyn Koh's letter ("Insurance clients have different needs"; Thursday). The different needs of the clients can be best met through term insurance, medical insurance, disability insurance and other protection products that are fairly priced and targeted at these needs.
The consumer should not combine the protection needs with the accumulation of savings in the whole-life and unit-linked policies where, in many cases, 50 per cent or more of the future savings could be taken away from them.

Ms Koh asked consumers to seek advisers to help them address their needs. Consumers should be careful to pick honest advisers. I have seen quite a few instances where dishonest advisers sold the wrong product to consumers using half truths and outright lies.
I urge the authorities to set up a hotline for consumers to address their complaints about being sold products that were not properly explained to them, and were unfair in their charges.

Tan Kin Lian