Saturday, July 21, 2018

Single premium Universal Life Policy

I saw the benefit illustration for a single premium Universal Life Policy where the distribution cost is nearly 15% of the single premium.

In my view, the distribution cost for a single premium product should be not moe than 5%. Already, 5% is quite high.

I find this distribution cost to be excessive and is unfair to the consumers. How can MAS approve this product for sale to the public?

MAS seems to take the view that the consumer should know what they are buying. In reality, most consumers do not understand such a product.

I suggest that MAS should have some guidelines in rejecting products that are unfair to consumers.

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