Every year, several tens of thousand of young people will fall for this mistake. Those who are successful in getting a good paying job are more likely to fall for this mistake.
What is this mistake? They are convinced by a friend or a former classmate, to buy a life insurance policy for long term savings and for protection. The friend, who is an insurance agent, is convincing. He or she is trained in marketing technique to be convincing.
Some of these young people are attracted by a "road show" where the insurance agent offer a gift for completing a survey. Many of them end up investing in a bad insurance policy.
A bad life insurance policy can lead to a loss of a few thousand dollars in the savings, if the buyer decides to terminate the policy. If the buyer continues the policy for the long term, the loss will be even higher, compared to what he or she can get by investing the savings in the right way.
How can the consumer tell the difference between a good or a bad life insurance policy? This is explained in my talk on financial planning. The next talk will be held on Saturday 9 April. More detail can be found here:
http://fisca.sg/event_det.aspx?id=1
To avoid missing this talk, you should register now. It is easy to miss this chance because you will be busy with your work or social activities.
If you cannot attend the talk, you can buy this e-book. It explains the basic concept of financial planning.
http://www.tankinlian.com/cart.aspx?ID=19
What is this mistake? They are convinced by a friend or a former classmate, to buy a life insurance policy for long term savings and for protection. The friend, who is an insurance agent, is convincing. He or she is trained in marketing technique to be convincing.
Some of these young people are attracted by a "road show" where the insurance agent offer a gift for completing a survey. Many of them end up investing in a bad insurance policy.
A bad life insurance policy can lead to a loss of a few thousand dollars in the savings, if the buyer decides to terminate the policy. If the buyer continues the policy for the long term, the loss will be even higher, compared to what he or she can get by investing the savings in the right way.
How can the consumer tell the difference between a good or a bad life insurance policy? This is explained in my talk on financial planning. The next talk will be held on Saturday 9 April. More detail can be found here:
http://fisca.sg/event_det.aspx?id=1
To avoid missing this talk, you should register now. It is easy to miss this chance because you will be busy with your work or social activities.
If you cannot attend the talk, you can buy this e-book. It explains the basic concept of financial planning.
http://www.tankinlian.com/cart.aspx?ID=19
3 comments:
Life insurance is to insure against a life event and NOT for anything else. It must be cheap and affordable so that the buyer can buy enough to insure his risks.
It is NOT a saving plan and IF it is used as saving the rate of return MUST beat inflation by 5th year, ie. above 3.5% which is the inflation rate over the medium to long term.
Do the current insurance products meet the above criteria? N O N E!!!!!!!
So why should you buy those whole life or endowment insurance products? They don't make sense, right? Remember this, to save means that whatever you save can buy MORE in the future and NOT less. Ask yourself ,can saving in these rotten products buy me more? Can they earn me 4% or more? If they cannot why buy them? You only make the agents richer because the commission they earn from selling you these products is always high. Tell me, have any insurance agents told or disclosed to you how much commission they earn from you? They won't because they earn at least 130% to 160% of the premium you pay. Wow!!! shy or not? How to break even in 20 years?
But if you need to buy them to satisfy your ignorance and stupidity or your smitten to your insurance agents then buy from the following companies at some discounts.
1. Fundsupermart...all insurance products with 30% rebate of commission.
2. Provident Financial Advisory.......all products with 30% rebate of commission
3. www.compareFirst.sg to compare ALL products and buy term and whole life insurance FREE OF COMMISSION.,,directly from any insurers. Remember this...agents will tell you THAT without them you cannot claim. If you hear this report them to MAS and get them punished because they are telling lies. Also remember this...most insurance agents sell through lies and untruths..
4..there are some top agents who are willing to give away huge rebate (up to 70%) from commission to you...that is how they become top MDRT or COT producers. Ask any agents and they will tell you it is true.
I hope the information will help the consumers to be wary of insurance agents. At the roadside shows or in the malls, especially aunties or women NEVER buy insurance from those peddlers.If you watch them, the insurance peddlers, . you will see what I say is true. These snakeoil peddlers always target AUNTIES and any middle aged women.They are told and trained by their managers and trainers to do so. To be on the safe side DON'T BUY INSURANCE FROM PEDDLERS AT ROADSHOWS.
This is INSIDER information.
In a materialistic society like Singapore, not easy to avoid people who make a living out of commissions.
When property market red hot, the estate agent will pester you to sell your property, when market is sliding, he will pester you to buy.
When dual currency investments are red hot, the bank relationship officer will pester you to enter, even swearing a country's currency will never go bankrupt.
Ditto with the insurance agent blocking your way at MRT Stations trying to sell his product.
These people are pests like roaches, ants, rats, etc. Even my own sister gets into the act selling Cambodia property, this is the hardest of all people to handle, my own sister.
Never buy from insurance agents. They are all dishonest or incompetent; either way they will screw up your financial life.
The worst agents are those who are or look honest but incompetent but you trust and these are the ones that will damage you most, like conmen.
Be careful, not to trust anyone but to deal will them at arms length ie. ask a lot of questions and grill them thoroughly, ask for time to decide and seek second opinion (mine paisay). This is self protection, your right.
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