Dear Mr. Tan
I need some advice from you. I am currently in my late 20s with a congenital heart disease.
My mother bought a traditional whole life insurance from company X many years ago. This policy had a loading due to my medical condition.
I need some advice from you. I am currently in my late 20s with a congenital heart disease.
My mother bought a traditional whole life insurance from company X many years ago. This policy had a loading due to my medical condition.
Recently I met an insurance agent from company Y. He introduced to me a limited payment whole life insurance where the premium period is only 25 years. He told me to surrender my current policy and switch to the new policy as this policy has a higher sum assured and a limited payment period.
This limited payment policy has an assured sum two times of my current However, the annual premium payment is also two times higher.
What should I do?
REPLY
It is usually a bad idea to switch from one life insurance policy to another policy. You will have to incur the high upfront cost all over again, as the agent will earn a high commission on the new policy and the surrender value on your existing policy is usually quite poor.
In your case, you will face difficulty in getting a new policy due to your medical condition. If the agent declares the medical condition, you will be loaded again, so your premium will be even higher than what was indicated now. The danger is that the agent will not declare the medical condition, and you will face problem many years later, when you have to make an insurance claim.
The new agent is giving you bad advice.
1 comment:
It is bad for you but good for the agent. You see their names or photos in the newspaper? Why are their names in the newspaper? They must have done something great, right? What is it? They successfully conned you into buying the rotten products and that is why their companies rewarded them for bringing in business for them.
It is your fault for being too easy on your ears. You shouldn't have trusted the agents and not even the agent who is your father. Why is that so? If your father is competent and honest he should know the product is rotten and not suitable for you and also shouldn't be selling to anybody. You must remember ALL whole life and endowment products are rotten.
If you must buy these rotten products then you should buy from these companies and get huge rebates , as much as 30%.
1. Fundsupermart.....30% rebate
2. Provident Financial.....30% rebate
3. www.compareFirst.sg.....pay no commission
4. ask your agents for 60% rebate and if they don't why should you buy from them, right? when you can buy from the above companies for at least 30% rebate.
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