I gave a talk to some students on financial planning. I showed them examples of benefit illustrations of life insurance policies that took away 40% or more of the accumulated premiums. They were shocked. They never thought that it was possible for so much of their savings to be taken away. They also assumed that the life insurance company had to offer the best terms through market competition. In reality, some life insurance companies were not ashamed to take away a lot of the savings because the consumer was not aware about it.
Usually, the insurance policies are sold by newly appointed agents who approached their classmates. These new agents were not even aware that they were causing a big financial loss to their friend by selling them a bad product. When they know about it a year later, the agents are likely to give up this job.
As I get to know more of these cases, I intensify my effort to educate the consumers. I urge you to attend my talk on financial planning organised by FISCA. You should also encourage your children (if they are about to start work) to attend the talk, so that they do not make a big mistake by buying the wrong product.
Tan Kin Lian
It is not the company that talks to the consumers.It is the insurance agents. Give them enough commission and incentives they are willing to lie ,con , cheat, tell half and do and stoop to anything. That is why many so called scam investment companies like to use the insurance agents to 'promote' their products and because the agents have a ready clientele of customers who trust them to tell 'the truth'.
ReplyDeleteAlso consumers trust the company that they kenna conned. Eg. Mr. TanKL has built NTUC into a household name known for good value for money products and now even the products are lousy the consumers still think they are good and the agents just ride on them to sell effortlessly. Of course time has changed and the truth is out and consumers are more careful. It is wise to err on the safe side.