I have often been asked - "is XYZ a good insurance policy?"
It is not possible to answer this type of question. The correct approach is to get a benefit illustration for the policy, provided by an insurance agent. This article explains what to look out for, and how to determined if the policy is a good policy.
Here are the tips on how to evaluate a life insurance policy:
a) If you are buying it as an investment, make sure that the yield is at least 4% per annum. The article explains how you can calculate the yield.
b) If you are buying it for protection, make sure that the monthly premium is not more than $1 to cover $10,000. For example, if you wish to cover $300,000, do not pay more than $30 a month. You can get this cover from a term insurance policy.
It is not possible to answer this type of question. The correct approach is to get a benefit illustration for the policy, provided by an insurance agent. This article explains what to look out for, and how to determined if the policy is a good policy.
Here are the tips on how to evaluate a life insurance policy:
a) If you are buying it as an investment, make sure that the yield is at least 4% per annum. The article explains how you can calculate the yield.
b) If you are buying it for protection, make sure that the monthly premium is not more than $1 to cover $10,000. For example, if you wish to cover $300,000, do not pay more than $30 a month. You can get this cover from a term insurance policy.
6 comments:
Have you read about the mis-selling by ntuc agent in the Sunday Times?
This was discovered by MAS mystery shopping survey.
The customer was asking to buy the Ideal Plan, ID7 introduced during your time but instead of telling the truth the salesman sold her a regular ILP with very high charges.This was the case of conflict of interest of salesmen and greed.
An ILP sales champion, lah.
Vivolink is good for the agents and the company. They can split the loot between them and the poor customers will be poorer by 100s%.The customers will have to wait for 20 years before they can get back their capital while the agents laugh all the way to the bank and enjoy bull fighting in spain..
MAS's discovery is nothing unusual.
The auntie and the uncle agents are very good at it. But if an incentive trip is thrown in for the aunties and the uncles you will see vivolink sale shoots through the roof of bras basah. hahaheeheeha
Vivolink is not much different from all the other regular rip off ILPs.
Compared to ID7(no charges) of Mr. TanKL Vivolink looks like scam.That is why the FINANCIAL CONSULTANT didn't dare to disclose and rushed the customer to close the case lest he or she would lose the case.
Erm just wondering what kind of plan is this ID7?
Anon July 25, 2012 10:02 AM,
ID7 or ideal plan was a regular ILP investing plan without charges. That is, 100% of your premium is invested.
This was the product under Mr. TanKL.
But changed to Vivolink when new management took over . Vivolink robs you of at least 105% of your premium.So which is better? Why replaced ID7? not selling well? not enough commission, lah.for the agents and the company.
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