Monday, July 09, 2012

Insurance policy to provide for education


I keep getting questions from from the public asking for specific advices, such as the following:
I'm currently 36 years old. I have two young children. I would like to buy an education policy for each of them. I expect to retire at 55. I would like to seek your advice which company offer the best policy. Or should I not even take up an education policy?
My reply remain the same, to read the appropriate FAQ in my website and to attend the 
educational talks conducted by FISCA.

 Read this article

If they want specific advice, they should see an adviser and be prepared to pay a fee. If not, they should be prepared to be ripped off.



6 comments:

Anonymous said...

First, have you set aside an emergency fund? Are you fully insured in these areas; 1)against death? 2) 3)against disability? 3)against critical illness? 4) H&S....all must be stand alone coverage.
5)Have you planned for your retirement?
If you haven't fully met ALL the above...the answer to buying an education policy for your children is a BIG NO.
Education for your children ranks LAST to the above. If you buy you are putting the cart infront of the horse.
Please don't let your emotion get the better of you. WE all love our children; we want them the best. But if the golden goose(YOU) is dead without the insurance above whatever plans you have for your children will become ZERO.
Don't let those commission driven insurance agents rob you.

Anonymous said...

There is no such insurance as education policy. It is an endowment with additional features to con you into beleiving that it is an education policy that provides the fund for education.It is expensive because a large part of the premium goes into the agents pockets as commission.
What you need is money when your children go to U. So the best strategy is saving wihout the insurance and to attain the same result with only 1/3 of the premium of a so called insurance education product. Endowment is almost a scam.Why should you pay so much for so little result when you can have so much with little?

Anonymous said...

Anon 9 Jul 2012 7.33pm:
Well said and I totally agreed.

Anonymous said...

Yes, there is no such insurance policy to insure for education.

Polices are presented as " education"
for the purpose of evoking the potential customer's emotions.

People normally will not listen to any proposals about buying insurance for one's self. But they will listen when it involves their children, parents, grandparents.

Talking about proposals, notice how the agents present to you a policy and its features? But when you decide to buy, you, the potential customer is the one that "proposes" to the insurance company?

That change in negotiation positions should make you wonder who is the seller and who is the buyer!

It indicates that you are now the one who is offering yourself to the company and therefore, it is your responsibility to declare all and sundry!

How unique right?

Anonymous said...

Education plans of insurance companies are rubbish. Don't touch it with a 20 foot pole. You can never send your children to college with this plan because it is too expensive and return is so low.It pays the insurance agents high commission, where got chance to grow?

Anonymous said...

I heard the 5 companies kenna warning by MAS about the shoddy work of their agents in the mystery shopping are N,P,A,G,M..I am surprised all of them are pushing limited pay products from whoellife to endwoment.In voque now are the limited pay endwoment, ie pay 5 years and keep another 5 years and get RUBBISH by the 10th year.
MAS must weed them out instead of slapping on the wrist only. Get rid of them like in Australia where very strict laws apply. The laws are no nonsense.

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