With a new year around the corner, I wish to share this message to the young people of Singapore who started work recently or will be entering into the workforce next year.
You have studied hard and done well in the exams. You have found or will soon find a job that pays quite well. You will have some spare money - if you do not spend all of your salary lavishly.
Someone, probably an insurance agent, adviser or consultant, will soon approach you. He or she is usually a person that you know, maybe a classmate or a friend.
The insurance agent will tell you about the importance of saving, investing for the future, and protecting your family against unforeseen calamities The agent will be quite convincing - as they have been well trained in this sales pitch.
The message that the agent give to you is correct, but the insurance policy that the agent recommends to you is usually bad for the buyer.
Many young people, maybe 20,000 each year, will buy the wrong policy and will be locked up in a poor yielding policy for the next 30 years.
I have seen many examples of the typical policies bought by young people that give them (say) $300,000 after 30 years when they should be getting $500,000. YES ... the difference is $200,000 and this is what they will lose out. (This is for a monthly saving of $500).
This information is shown in the benefit illustration under the column called "effect of deduction". But most buyers are not aware about it. When they learn about it later, it is too late. They have locked up their savings in a bad policy and can only get out by suffering a large loss.
You can avoid this disaster. You only need to spend 3 hours and $30 to attend my talk on financial planning.
I will show you what to look out for when you buy a life insurance policy. More importantly, I will show you how you should invest your savings in an index fund that gives you the best return over the long term, and the flexibility you will need in an uncertain world of today.
My talk is held on Saturday 9 January in HDB Hub in Toa Payoh. I conduct this talk once in 3 months, so you should not miss this talk. You can find out more details and register for this talk at this webpage
1 comment:
While educating them , Mr. Tan , please also educate them that there are places where they can buy insurance free of commission or rebate in commission.
Please do tell them these sites.
1.www.cpmpareFirst.sg..........free of commission
2. www.insurance@fundsupermart.com.sg......30% rebate
3. www.diy@insurance.com.sg........................30% rebate
Lest people think I have vested interest in these sites, I confirm I have none. I am only a member of the public who likes to share good things with public espcially life insurance
because I have known so many complaints about insurance agents and the products.
The public deserves to be protected from these charlatan agents.
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