Sunday, February 12, 2012

Poly student should not buy Life Insurance

I received this e-mail:
Hi , I am a student, from polytechnic. I had bought a pruflexicash policy. And I found out that the sum assured is only $10,500. And I pay $77 monthly. Is it really worthwhile to continue with this policy? I had already bought this policy for 8 months.
I asked the student to tell me how he was sold this policy. It is clearly not suitable for a student. If it was to buy protection, the student could have bought $100,000 of life insurance cover from SAF for $10 a month. If it was for savings, the student should have kept the money in the saving account - at least he does not lose 50% of the saving for the first two or three years.

Clearly, the insurance agent who sold the policy must be taking advantage of the ignorance of the polytechnic student. The agent earns the commission at the expense of the student. It is unethical. Should this be allowed to continue?


Tan Kin Lian said...

The poly student lost $600 if he terminates the policy. If he continues the policy for 3 years, he would have lost more . quite likely more than $1,000.

It is so sad that many people are caught in a trap such as this. They could have avoided the trap, if they had spend $20 to attend a 6 hour talk organised by FISCA. They could have saved $200,000 over 30 years.

Go to, and click on Events.

If they do nothing now, they will face a bleak financial future and fall into this type of trap.

I ask the readers of my blog and members of FISCA to spread the word around and tell more people, especially the students, to attend the FISCA talks.

Anonymous said...

It is a rubbish product like all the other cashback products. They are scam anticipated endowment.
I would advise the student to report to MAS about the mis-selling.
This is nonsense...the product is inappropriate as saving plan let alone a protection plan.
Please don't hesitate. Lodge with MAS to get rid of this unscrupulous agent.

Anonymous said...

Insurance is not a savings plan.

Insurance is risk management

There is no savings element at all.

Savings is mentioned to attract buyers.
Same as homes.. it is first a home and never an investment.

So much misleading concepts...

Anonymous said...

Do you know that anticipated endowment called by various names are reversed saving products.The payouts are actual premium refunded but insurance agents mislead or rather con their customers into thinking the cashbacks, coupons or dividends are interest earned. This is cheating and therefore customers should report to MAS if they are sold one.
Some agents even pass off these products as annuity products meant for retirees; some even say these payouts for education fees; some even say they are saving for vacations. This is a conjob and the insurance companies close their eyes on these claims.
One local company's agents even call this product as 'buy one get one free' product. This is unscrupulous.You know the agents get 2 commissions from this scam?
MAS must step in to check on them.

Anonymous said...

The insurance companies are running out of good ideas and now resorting to cheating the consumers by using their army of greedy agents to tell lies.
The company and agents work hand in glove to steal from their customers.

Anonymous said...

I advise this student to join FISCA and get educated in financial matters before getting conned by predatory insurance salesmen lurking in everywhere.
You never get appropriate advice.
Remember, appropriate and right advice in most situations doesn't pay much to the adviser. But that should be the satisfaction and the right remuneration.
All or 99% of insurance agents are salesmen and they don't put your interest first, they put their commission first.They push the products that pay the highest commission and high commission products are not good for consumers. This is the rule of thumb.

Anonymous said...

I thought only NSF/NSmen can buy the SAF insurance?
Can students buy this too?

Jun Wei said...


I beg to differ from the comments above. Only recently i came across your blog and i found the analysis rather wrong.

I myself bought one of these plan since the second year of my polytechnic school life. in fact i came across this when i'm in my year 1. i didnt get this policy at that time because i didnt have the ability to pay for it. i didnt want to ask my parents for the things i buy. It was only until my second year, when i work as a part time waiter then i buy this plan.

I bought this plan is not to protect myself. This is a Endowment plan. Meaning it is a Savings plans that comes with some insurance coverage. And bear in mind, this is not meant to be a 2- or 3-year savings plan. it is suppose to be long term. That why you will not be able to see short term returns.

As for savings in Banks, how much of interest can you get back? I believe in the long run, i will benefit from this plan much more than if i were to save in banks.

Poly students should not buy such plans only if he is unable to sustain it for the period of the plan. Else, he should start making plans for his future.


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