Saturday, January 07, 2017

How to differentiate between a good and a bad life insurance policy

Dear Mr. Tan
I remember reading several of your postings. You seem to suggest that all life insurance policies give a poor return on investment. Are there any exceptions? Maybe some of the policies can give a satsfactory return, compared to other types of low risk investments, right? How do we tell what is a good and a bad investment, rather than brush all of the policies as bad?

I agree with you. There could be some types of policies that offer a good return.
The consumer needs to know how to tell a good or a bad investment.
The clue is given in the Benefit Illustration. You need to know what to look for.
You can find the answer here:

1 comment:

Anonymous said...

If an insurance product gives a return lower than inflation , how can it be good? Please explain . If inflation is 3-4% or higher a year and your money is losing/shrinking 2% to inflation every year how can it be good? That is what insurance products give, isn't it? Almost ALL the insurance products give a return of 2%+ ONLY AFTER 25 YEAR . Is it saving ? Or better call them losing plans.Do you save to lose? I can't understand the maths. Now a days insurance products border on scam. There is no disclosure. Worse insurance agents lie.
MAS must come down hard on them, including the insurers.
Insurance works because there is a fool born every minute and there are enough fools to keep the insurance agents earning good money.

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