Sunday, May 28, 2017

Beware of this type of life insurance promotion

Several investment linked policies, offered by a few insurance companies, follow this structure. It is easy for the consumer to fall into the trap, and to regret their folly.

1. The agent tells them about a limited period promotion, which offers bonus units for their investments.
2. The customer ask many questions about the promotion, but FORGOT to look at the important aspects of the underlying policy.
3. They were not aware about the high annual and penalty charges.
4. When they realize the fact, it was too late. They have invested more than $10,000 and would have to suffer a part of it when they terminate the policy, or to suffer a large loss each year.

This product analysis shows how the charges work.

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