Thursday, June 12, 2014

Life insurance - before and now

There was a time, long ago, when life insurance was good. The insurance company took your money, invest for the long term, earn a yield of 6.5% and give you a return of 5%, after expenses and profit. 

You are not able to earn a yield of 5% from other investments, except for quality shares, but most people do not know how to invest in these shares.

Today, life insurance gives a bad deal. The insurance company takes your money, earn a return of 5% and gives you a return of 2.5%, after expenses and profit.

You can get a good return by investing in an index fund, i.e. the STI ETF. This can give you a return of 6% or more. This gives you a payout that is more than 50% higher than the payout from a life insurance policy.

If you have a better choice, why put your money in a traditional or investment linked policy and get a poor return?

To learn more about how to invest in a better investment, attend this talk:

1 comment:

zhummmeng said...

When u were a CEO your salary was few times lower and u had a few VPs etc .It explains why your products were need accountants or maths whiz kids to tell u cost and return are inversely related.
Today the staff increase with many highly paid 5 star GENERAL positions and
LOTS of product incentives and trips to never lands. Who pays the cost ? Of course the consumers....but why the consumers know that they are rubbish products and yet they "BOUGHT".
HUH!!!! the trick is MAKE THE PRODUCTS COMPLICATED AND CONFUSING so that ONLY the agents can explain ....this is where everything goes so long they achieve the goal, ie close the sales.
Sure close one!!!!! the strategies are rebates, rebates , gifts gifts and if they don't work......confusing with lies lies , non disclosures, miss selling , misrepresentation ...and the agents get bolder and dare more lies if the incentives get bigger and bigger...This is the trick of the game to fleece and skin the consumers.....and also to defeat MAS's plan to allow products to be sold directly to consumers without the commission...
Hahaha, history of the life insurance industry is about the constant tussles between the insurance companies and agents on one side and the consumers on the other side ....the consumers sure lose one without the protection...die is their business.
THE CONSUMERS ARE THE REASONS WHY THE INSURANCE COMPANIES AND AGENTS EXIST. THE CONSUMERS ARE THE CASH COWS. And that is why many want to join the industry...from bus drivers, to retrenched receptionists and secretaries to accountants and engineers..Wow!!! an array of experts from different background with ONE rob the hard earned money of these helpless, clueless folks.
Worse these experts equipped with tikam tikam licenses that any monkeys and pets can also pass.
What a mockery....they are allowed to call themselves from financial planners to executive financial consultants unashamedly .And where is the regulator? if they are NOT financial experts aren't they are misleading and misrepresenting to the public?

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