Dr. Larry Haverkamp writes on Sunday Times personal finance column says commission based selling must be banned because it encourages insurance agents to push only products with highest commission instead of products that give the best to clients. He cites regular ILPs as example which carry very high commission instead of RSP unit trusts and ETFs. The industry's excuse is consumers are not ready. The truth is the insurance companies and the agents don't want to be 'ready' because the current model earns them lots of commission and fast too. On top of it switch to fee based will expose the agents' incompetence and the companies will be earning lesser. Commission model makes lots of money for the insurance companies too and requires little or no competence and compliance of them . However, Australia and UK which implemented the fee based have been working fine although it got rid of the incompetent ones and reduced the total population of agents. In Singapore there are too many agents and many are joining the life insurance because of fast and big money to be made or rather this is an industry where they can rob and plunder their customers in broad day light and legally too with the blessing of the regulator. Hope MAS is sincere about helping the customers and make it difficult for the insurance agents and their companies to rob public.
Insurance products are designed deliberately to be complex so that they can only be sold and not bought, ie. it is left entirely to the insurance salesmen/RM/personal banker/financial consultants and whatever to do, say, pitch anything and anyhow so long they are sold and bring revenue to the banks and insurance companies. Where is MAS? Is MAS for the consumers or the sellers? From anecdotal evidence MAS is working for the insurance companies, the banks and the insurance salesmen. Why? dunno. Maybe they are paid by these entities.
Why you should avoid buying regular ILPs.Read this link. http://dollarsandsense.sg/the-ugly-truths-behind-investment-linked-policies/
There is one insurance company whose agents SPECIALIZE on this product and make tons of money especially from young people. To be exact 100% of your premium after 3 years. Very lucrative and very easy to BS the customers into buying this product. All the agents need to CONvince the customers to part with JUST $100 and they can make $600. Many young people can and don't mind part $100 and not realising it is not $100 per month but $3600 without their money doing anything for them. Customer , Beware of this product and report the agents to MAS.
Hi Folks, to beat the conman insurance agents please read the link provided here...https://sg.finance.yahoo.com/news/parents-financial-planners-did-not-003046414.html Reading the article will only make you aware of the prowling conmen and women who are waiting to devour you of your hard earned money. That's much it can help. Best is to attend talks by Mr. Tan and seek his help for a nominal fee to compensate his time and advice whnever and BEFORE you commit to buying any life insurance products. That will you save thousands of dollars and anguish and frustration. Remember this axiom, DON'T TRUST THE INSURANCE AGENTS.THEY ARE NOT INTERESTED IN YOUR FINANCIAL LIFE BUT THEIR OWN COMMISSION."
Dr. Larry Haverkamp writes on Sunday Times personal finance column says commission based selling must be banned because it encourages insurance agents to push only products with highest commission instead of products that give the best to clients.
ReplyDeleteHe cites regular ILPs as example which carry very high commission instead of RSP unit trusts and ETFs.
The industry's excuse is consumers are not ready. The truth is the insurance companies and the agents don't want to be 'ready' because the current model earns them lots of commission and fast too. On top of it switch to fee based will expose the agents' incompetence and the companies will be earning lesser. Commission model makes lots of money for the insurance companies too and requires little or no competence and compliance of them .
However, Australia and UK which implemented the fee based have been working fine although it got rid of the incompetent ones and reduced the total population of agents. In Singapore there are too many agents and many are joining the life insurance because of fast and big money to be made or rather this is an industry where they can rob and plunder their customers in broad day light and legally too with the blessing of the regulator.
Hope MAS is sincere about helping the customers and make it difficult for the insurance agents and their companies to rob public.
Insurance products are designed deliberately to be complex so that they can only be sold and not bought, ie. it is left entirely to the insurance salesmen/RM/personal banker/financial consultants and whatever to do, say, pitch anything and anyhow so long they are sold and bring revenue to the banks and insurance companies.
ReplyDeleteWhere is MAS? Is MAS for the consumers or the sellers? From anecdotal evidence MAS is working for the insurance companies, the banks and the insurance salesmen. Why? dunno. Maybe they are paid by these entities.
Why you should avoid buying regular ILPs.Read this link.
ReplyDeletehttp://dollarsandsense.sg/the-ugly-truths-behind-investment-linked-policies/
There is one insurance company whose agents SPECIALIZE on this product and make tons of money especially from young people. To be exact 100% of your premium after 3 years. Very lucrative and very easy to BS the customers into buying this product. All the agents need to CONvince the customers to part with JUST $100 and they can make $600. Many young people can and don't mind part $100 and not realising it is not $100 per month but $3600 without their money doing anything for them.
Customer , Beware of this product and report the agents to MAS.
Hi Folks, to beat the conman insurance agents please read the link provided here...https://sg.finance.yahoo.com/news/parents-financial-planners-did-not-003046414.html
ReplyDeleteReading the article will only make you aware of the prowling conmen and women who are waiting to devour you of your hard earned money. That's much it can help. Best is to attend talks by Mr. Tan and seek his help for a nominal fee to compensate his time and advice whnever and BEFORE you commit to buying any life insurance products. That will you save thousands of dollars and anguish and frustration.
Remember this axiom, DON'T TRUST THE INSURANCE AGENTS.THEY ARE NOT INTERESTED IN YOUR FINANCIAL LIFE BUT THEIR OWN COMMISSION."