Tuesday, November 17, 2015

The insurance agent sells a policy that is not affordable

Dear Mr. Tan
I need your advice.

I bought PruFlexiCash policy. The premium that I bought was extremely high for an average salaried worker. 

I thought I was misled into thinking that I can reduce my premium after 2 yrs and the premium difference will still be in my account. But this was not the case even after having repeatedly asked the agent about this issue. 

When I asked at the point of sale, she replied that I could reduce any time I want after 2 yrs. I had also asked about the penalty or implications for doing it, she answered no issues on the reductions.

I have filed a complaint with FIDREC but I sense that I will not succeed in the complaint. Can you advice me on what to do?

You can resubmit your complaint to FIDREC. You can show evidence that the monthly premium is unaffordable based on your monthly income less the regular expenses. The agent has failed in her  duty to ensure that the policy was suitable to you, based on your net monthly income. 

This would support your point that you had the impression that you would not suffer a penalty by paying a higher premium during the initial years, out of your past savings. 


Anonymous said...

Lodge with MAS to let it know that this unethical practices are going on unchecked. What is MAS doing? Is it sleeping or has it its head buried in shit?
Wake up , consumers!!If MAS doesn't want to do anything it is time you take the law into your own hand, ie. boycott buying life insurance from any insurance companies. Just do it.

Anonymous said...

Hahaha, Prucash and Revosave from ntuc have the same characteristics .
How come? They are born of the same father. You know who?
Both are scams disguised as 'annuities'...low return. You are better off keeping under the bed..and much better off buy Singapore saving Bond.
Open your eyes and look closely who is your 'adviser". is he ow she a salesperson masqueraded as 'consultant"...sure or not...look below their skirt or pant to see if they are quailfied and competent and most important of all, put your interest first and not their own pocket.
In this industry, nobody is to be trusted anymore, even your own brother and sister.

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