t is important for a consumer to be able to say "No" to a life insurance agent. Here are some tips on how to say "No". They are especially important for young people who are starting work for the first time. The ability to say "No" in a nice way can save you a lot of money and protect your financial well being.
Remember if the insurance agents have the logo of MDRT or COT or TOT in their name card these are the salesmen and sales women from whom you should run as fast as you can. If you are wondering what these logos, they are logos that announce that they have conned many people of the commission.They are ONLY interested in the commission and NOT YOU.
ReplyDeleteAnother group of salesmen who disguised as Executive Financial Consultants. They are anything but consultants. They execute order only, fill up the forms for you and submit your application forms for approval and they tell you you need them when you make claim otherwise you can't claim.
For your own safety ask them their name card first; next ask what they are selling; ask them how much they are paid for the product they are pushing to you etc. This is your right.
Don't trust them. Remember, they are after the commission and not your interest.
I read your article "how to say no to an insurance agent". I agree to most part that term insurance offers affordable protection and ETF is a cost effective way to invest for the long term. But it is simply erroneous to imply young people do not need critical illness coverage. Yes, the risk of contacting CI is higher as one gets older, but younger people are falling prey to diseases like cancer at the same time. Insurance is really about managing the risk of major catastrophes even at a low probability of occurance. Take for example the case of a teenager afflicted with cancer with both parents working. I am sure one of the parents would like to quit her job to look after the child or even explore alternative treatments. While healthcare insurance will settle hospital bills, it doesn't replace the lesser income and other expenses which is why a CI coverage will benefit. I believe people all have their unique circumstances, so it's never wise to make a sweeping statement.
ReplyDeleteReply to David
ReplyDeleteThe cost of treatment for a critical illness is covered by a Shield policy. If you wish to buy critical illness cover, buy the cover under the SAF group insurance policy and pay $10 a month for $100,000 of coverage up to age 45. Beyond that age, the premium rises sharply but you would have accumulated sufficient savings to meet your needs.
Do not pay $300 to $500 a month for a critical illness coverage of $100,000.
There is not a single policy that i know that can cover critical illness sufficiently.
ReplyDeleteIf initial diagnosis confirms kidney failure, the claim could be $50K.
Mind you, it must be confirmed in order to qualify for the claim.
How long will 50K last?
Lets look at some numbers:
A) Dialysis- per visit $500
( private outlet initially until NKF accepts you )
B) Min visit is 3 x per week = $1500
C) Per month = $6000
D) Per year = $72K
And the cost of medication and Dr consultation is not included.
What about transport costs? Is there a dialysis center that you can get to just a block away? hah!
Do not waste money on critical illness.. waste money on a pair of running shoes and eat fruit.. expensive fruit such as craneberries, grapes,peaches, papaya.. expensive salads.. zuchini, beetroot, parsely.. all this will help you save money and health
I agree with Mr. Tan that consumers should use low cost and not fall prey to predatory insurance agents who only want to sell WL or limited WL. In order to have enough WL insurance fails to meet the needs at a low cost. The child with critical illness is a very rare case and consumer should not spent so much just because insurance agents use scare tactic to frighten you into buying.H&S is cheap and it takes care of much of the treatment cost. There is no income replacement for a child.
ReplyDeleteDo not use the so called 'unigue circumstances' or 'everybody has their own needs' to support the argument. While it is true that everybody has different needs. The question is do insurance agents meet these unigue needs with WL? WL can't because it is beyond many man in the street.Only the rich can have FULL coverage but they are not dumb too. They buy term , cheap and good and can address the needs fully. Even actuaries will say consumers are dumb to use WL to address personal risks. Insurance is about protection and one must have FULL coverage and not partial WL.This is what insurance agents want to see so that they can have more business to do.
I find them disgusting..They have no moral and conscience. They are selfish and only see commission but not the consumers' interest and needs.
Please read Christopher Tan's article in the Sunday Times about terms. He uses term to help his clients to manage risk and not dump WL on them.
Why Singaporeans are under insured is because insurance agents only go for commissions and they talk so much about WL. What if high commission is shifted to term products, i wonder what will be their argument?