Sunday, February 13, 2011

Poor yield on Vivo-life

This case study shows the low yield on the Vivolife policy. The reduction in the yield is too high.  The insurance agent sells this policy on the point that the policyholder needs to pay premium for a limited period, but does not explain that the deductions are too high, giving a poor yield.


Ask Mr. Tan
http://tankinlian.com/admin/file.aspx?id=398

This is an example of the evaluation of financial products that will be available exclusively for FISCA members after the new website is launched in March 2011. There will be many examples of life insurance policies, structured products and bonds. We will build up a databank of more than 100 evaluations within a year, I encourage consumers to wait until March to join FISCA, as we are now busy in revamping the website .

Tan Kin Lian




3 comments:

zhummmeng said...

This is half truth and half lies and what salesmanship is all about and it is no different from conmanship.
Conmanship uses the 5Cs.
1.first the insurance agent tries to Convince with half truth and if that fails he or she will try
2.to Coax by nudging the client with hand play and gifts and vouchers
3.confuse the clients by employing other non essential features and make comparison with competitors'
if the above fails
4.Con by misrepresenting, misleading and falsehood
5. Cheat..by lying and trapping the client into signing.

Of course , the creative conmen may not necessarily follow the above algorithm many have ways shortening the conning cycle.

ALL NEW PRODUCTS ARE CREATED COMPLICATED WITH RUBBISH FEATURES SO THAT THEY HAVE TO BE SOLD.This provides the opportunity for the insurance conmen and women to employ conmanship skill.

Solomon said...

It is no worth the risk to subscribe to insurance. First it is the commission that need to be deducted from your premium to pay for big bonuses for the sale persons and many many persons above he or she. Second, the surrender amount is way below what you have invested for many many years to come and finally once you are in trouble the company will find all the excuses (fine prints etc....) not to pay. If they have to pay up, they will employ delaying tactic like paperwork and more paperwork.

zhummmeng said...

"Licensees and representatives must pay substantive and proper consideration to the complexity of investment products(including life insurance and ILPs) and their clients’ background and needs when providing financial advisory service.
Without CLEAR evidence that clients UNDERSTAND an investment product, licensees and representatives should not recommend the product, particularly if it is of relatively higher complexity. Licensees and representatives should also NOT RECOMMEND investment products when it is apparent from a client’s circumstances that the client would not understand such products."
Many product pushing salesmen breach this guideline, do you agree? How many customers who were sold limited pay wholelife understood the product? Yet all of them were sold the product.Why isn't MAS taking action against them? Is it because there isn't any complaint? The problem is the customers don't even know the problem of the product to complain.They will know after 20-25 years later when they wake up from the coma.

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