Saturday, October 31, 2015

Sold a bad policy at a bank

Dear Mr Tan,
I am one of the silly aunts who was being misled into buying this product. I went to UOB with the intention to open a fixed deposit after selling my flat but was recommend to buy prucash max limited pay. They only repeatedly highlight the investment return will be 4.75% much higher than the bank.

After agreeing to buy,they let me sign a stack of forms which are difficult to understand and didnt properly explained to me.Only recently after reading your article then I realise this product is very unfair to policyholder. Only win win situation for themselves. 

My total premium will be $60000 pa for 5year, how come guaranteed return only $43000 after 15 years. I thought of terminating but will lost $12000. Why MAS approved this kind of product. I am at a loss,pls advise. Thank

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Anonymous said...

This person has been sold a poisonous limited pay endowment, no difference from the sales manager who sold cough syrup with codiene by the gallons, as reported in today's New Paper.
How come MAS is not aware or is it that its head is buried in the shit pool?
This person is better off with a single premium product than the limited pay regular endowment. The return of a single is definitely better than the poisonous regular endowment.Not that she hasn't got $300000 in lumpsum, why did the salesman split up what she has into 5 regular payments? Is it the salesman is getting better commission than the com from a single premium endowment? It is obvious the product sold to this lady is not suitable. Why is it approved by his or her supervisor? Are they in cahoot? What about the Independent Auditor from compliance? Didn't he or she spot the infraction? This calls for investigation. MAS must be notified.
Mr. Tan , please report to MAS about this case.This gross commission of mis-selling.

Anonymous said...

Not only the product is rotten the recommendation shows incompetence and conflict of interest of the salesman.
The salesman should have his or her license revoked and fined and the bank fined heavily for incompetent supervision.
This case should be reported to MAS immediately and don't let the salesman and the bank get away.

Anonymous said...

Yes, they misled you. The return will NEVER and is NOT 4.75%. The 4.75% is a "what if' the life fund return.
You can lodge a report to MAS and you better do to stop this bank and its agents from cheating other clients. No endowment in the market has ever returned 4.75% even after 30 years let alone 15 years.
Please do other consumers a favour by reporting to MAS.

Anonymous said...

This is terrible and it is not the first case and also not the last if nothing is done about it. This type of limited pay endowment product seems to be everywhere. It is always waiting to happen. And if MAS were to check all the cases sold by all the insurance companies and the banks I bet that at least 95% of the cases sold were sold wrongly and not comply with the Balanced Score Card minimum standard of requirement.
MAS should step in to check the cases sold by insurance companies.

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