Do not incur the front end charge again!

Most life insurance companies (other than NTUC Income) impose a charge of up to 2 years of the premium to pay commission to the agent and other expenses. This high charge makes life insurance unattractive for most policyholders.

To make matters worse, some insurance agents advice their customers to switch from a previous plan, into a new plan. They tell the customer that the new plan is "better" than the old plan. The unsuspecting customer will have to incur the front end charge all over again.

If your insurance agent advise you to switch your plan, you should be suspicious. Ask the agent if you have to incur a front end charge again, and how much will it cost you.

Usually, it is better to stay with the original plan, as you have already incurred the high cost. If you have to make a switch, ask the agent to refund the front end charge on the new policy, back to you. After all, you have already paid for it on the first policy.