Tuesday, August 07, 2012

Skewed maturity value projections

There are new life insurance plans introduced in the market with skewed maturity value projections. These policies appear to provide a fairly reasonable yield on maturity. Consumers should be wary of these plans, as there is a high risk of being disappointed in the future, i.e. the projected values may not materialize. These policies should be avoided. Read
http://tankinlian.com/admin/file.aspx?id=668&IID=671

7 comments:

yujuan said...

Plse lah, insurance is for meeting medical and hispitalization costs, not for investments or savings.
Dun be fooled by all those "benefits and illustrations' charts, those projections are not legally contractual, they are out to pull wool over your eyes to tempt you to commit.

Anonymous said...

yujuan,
you are right but the greedy and unethical agents try to justify the expensive whole life with cash value.
You can buy insurance if it is for coverage at a fraction of the premium of the expensive wholelife plan. Customers stupidly beleive the agents and get conned resulting in under insurance.This is what MAS is trying address.
Customers must wake up that the cost of insurance coverage is NOT returned in the cash value , only the surplus premium (your money) invested by the company is returned
as miserable cash value and sometimes cheated by the insurers as what Mr. Tan is trying to tell you.
Buy your insurance coverage separately and invest the rest regularly and it is LOW RISK.. You get much superior return and get adequate coverage.
Why insurance agents and the insurers don't like you to buy them separately? It is because they both make very little from you. Both are cheats.....they NEVER have the customers' interest at heart. They claim they do but they NEVER in their actions. They both conspire to fleece the customers. Look at the products, they are scams.EG.. the early stage cancer payout is a scam. Ask any doctor and they tell you early stage is VERY VERY hard to detect; no sign, no symptoms, no pain or anything to tell you, to show you that an early stage cancer is present.The insurers are preying on your fear.They use scary gory pictures which are 4th stage cancer pictures to scare you to buy. This is misrepresentation. This is cheating.
The insurers are running out of ideas in their product design . The greedy incompetent salesmen need NEW products to push. The new products border on scam as a result. Any enhancement in value in the core benefits? Z E R O!!!!!in fact much lesser than the old products. So don't be conned. Go for plain vanilla products.

Anonymous said...

The social enterprise is also using the industry's 'best practice' to design their products. Where is the "made different'? No different , lah.all the bull being made different. it is same same with the rest. No wonder the senior VP defended the 'CONsultant' for his recommendation of regular ILP vivolink to a 60s old woman.Dunno for what objective? He also said that the old Ideal Plan ID7 not salesable...dunno what logic . this Ideal plan got no charge, 100% invested whereas vivolink got very high charges, 20 years to break even. Which one better? monkeys dunno also will choose Ideal plan, right?
so you see , indsutry's best practice is to make customers pay as much as possible to enrich the agents and the company.
Fact find is a big bull. Fact find done after the sale is closed?

Jeremy Ow said...

We need more financial education for the general public so that everyone can know how to assess insurance policies to prevent being misled by financial advisers. Financial advisers tend to upsell the benefits of every policy and downplay the negative considerations in any policy. I think one needs to be correctly informed so as not to be misled into buying any insurance products that give poor yield and yet are touted as policies to prepare one for retirement needs. It is an irony that such policies may not really provide good retirement benefits afterall. Caveat Emptor.

Anonymous said...

Anon August 07, 2012 9:56 PM,

Yes , sale of ntuc regular ID7 was very good for both the agents and the customers, wonder why this new new senior VP of ntuc said it was no good. Is he trying to belittle the products of Mr.TanKL's time?
Truth is this vivolink is no good for customers.
How can a product with very high charges be good as a saving plan?

Anonymous said...

The so called financial CONsultants don't care whether high charges or not or whether the customers can meet their needs or not , as long the salesmen disguised as
financial consultants get high commission or the company get high APIs. The idiots are the customers kenna conned.
Wake up, customers. If you don't , continue to be conned.

Anonymous said...

It didn't happen in a cooperative and we thought this would not happen in a social enterprise.
Cooperatives HAD the customers' interest in mind whenever it rolled out products and sold products.
But with social enterprise, NO!!. I realised now why social enterprise is "made different". The salesmen are different; the products are different.........expensive, low quality and low return; the salesmen are greedy and anyhow do.

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