Most investment linked policies (ILP) have a similar feature. You will incur a large loss when you terminate the policy during the first few years, as up to two years of your savings are taken away to pay the commission and marketing expenses. You may breakeven after 10 to 15 years, but it is a long time. Even so, there is a high deduction each year from the actual investment gain - so the net gain is quite small. These features are explained in my book, Get Value from your Life insurance, which is available from www.tankinlian.com/ishop.
Guideline is if the product is good for the insurance agents and the company IT IS BAD FOR CONSUMERS. It is common sense, isn't it? Thus, if the insurance salesmen are keen to peddle these products or any products they must be suspected. The consumers must suspect any salesmen who peddle, push products upfront because your interest is NEVER at the heart of the pushing, their commission is.
Hi Mr Tan,
ReplyDeletewhat is your opinion on this story?
Thanks
Most investment linked policies (ILP) have a similar feature. You will incur a large loss when you terminate the policy during the first few years, as up to two years of your savings are taken away to pay the commission and marketing expenses. You may breakeven after 10 to 15 years, but it is a long time. Even so, there is a high deduction each year from the actual investment gain - so the net gain is quite small. These features are explained in my book, Get Value from your Life insurance, which is available from www.tankinlian.com/ishop.
ReplyDeleteGuideline is if the product is good for the insurance agents and the company IT IS BAD FOR CONSUMERS. It is common sense, isn't it? Thus, if the insurance salesmen are keen to peddle these products or any products they must be suspected.
ReplyDeleteThe consumers must suspect any salesmen who peddle, push products upfront because your interest is NEVER at the heart of the pushing, their commission is.