Many consumers were told by insurance agents that they need to pay premium for 10 to 13 years. After that, they can stop paying premiums, and the policy can continue "smoothly".
The consumers did not realize that when the stop paying premiums, the premiums are being charged to their cash values and interest is added at a high rate. The cash value can run down and may eventually eat away the entire policy. All the premiums paid previously would be gone.
When the consumers learned that this is how the policy worked, they were shocked. They did not realize that their past savings would be gone.
This type of sales presentation had a high risk of being misleading to consumers. Many consumers had been misled into entrusting their savings into this type of policy.
1 comment:
Is whole life or an endowment a saving plan? Are you really saving? Can you access your saving anytime you like or need it?
You can but NOT without paying an 'ah long' interest of 8%.
8%? but the insurance companies are NOT paying you bonus of 8% or your cash value isn't increasing at the rate of 10% or 20% but ONLY miserable 2% and ONLY after 25 years and yet they charge you 8% for 'withdrawing' your OWN money. What kind of saving is this?
It is real stooopid isn't it?
Are you told about this when the agents pitch you the whole life product? Did you suspect why the agents are so keen to push this whole life product to you? Let me tell you..It is highest commission paying product.
But good news!!!!! soon you need not buy through an agent, you can buy direct without paying commission. You can go direct to insurance companies and buy the products without being conned by the agents..The downside is you bear the risk. But don't worry, when buying through the agents you ALSO bear the risk because the agents choose the 'product advice option' or type 3 option which denies you any right of recourse if you should find the product not suitable.
BTW, did your agents warn you of this risk when they made or conned you to tick the type 3 option? If they didn't you can lodge with MAS that your agents failed to tell you of this risk and your rights according to LIA's latest directives
Know your rights by attending FISCA talks.
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