Thursday, November 17, 2011

Effect of Deduction

Hi Mr Tan.
I am signing a policy soon. But I don't understand what the effect of deduction is. It's a AXA policy called INSPIRE FLEXI 2. After reading your blog, I tried to do the calculation but am more puzzled. Attached are the 3 pages of the illustrations. I hope that you can advise me.

The Effect of Deduction is the amount taken away from your future savings. You can see that this is a large amount. Why are you investing in a life insurance policy when so much is being taken away?

It is better for you to invest on your own, e.g. in the STI ETF, as advised in my book. You can buy term insurance for your life insurance protection. Please read my books for a better understanding on this matter.

You can also attend the FISCA talk on 26 Nov 2011 - register here:

In the meantime, you should not take up the life insurance policy, especially as you do not understand these important matters.


Spur said...

Just buy Mr Tan's books and spend 1 weekend learning lah, instead of spending $500 going clubbing, drinking, shopping, dining during that 1 weekend.

You're going to be paying big bucks to the salesman. Why not you ask the salesman to explain?!? Why not you ask the salesman to give you 50% of his commission if you're not happy with his explanation??

zhummmeng said...

I should ask the salesman for a discount. He or she did nothing but peddling you the product. Remember that the salesmen are making money FROM YOU and NOT FOR YOU. So asking for 75% discount is only fair for they give you NOTHING worth the commission of the is your right.

Tan Kin Lian said...

Many of the insurance policies sold in the market now are covered in my book, "Get Value from Your Life Insurance", available from By reading the book, you can learn to differentiate between the good and bad insurance policies.

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