Monday, July 19, 2010

FAQ - Life Insurance, Past & Present

Have life insurance policies changed from the past to the present? Read here.
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1 comment:

zhummmeng said...

Participating insurance products can NEVER improve in term of lower protection cost and higher return.
In the recent years a lot of frills have used to cover up them and to pass off as additional coverage and as new products.They have been restructured to fool the consumers and the most popular are the LIMITED PAYMENT ones.In fact these product make it worse because consumers are worse off with lower coverage. The insurance companies bank on short term payment which is an illusion.Is payment really stopped after the term? This is cheating if the companies and their agents don't tell you the truth that you DON"T stop paying. Your CASH value is paying and paying for the rest of its life until terminated and the amount gets bigger and bigger until the return of the policy is seriously affected. You see, a lot of things being hidden from you.The companies are not transparent and dishonest. They dare even to shout that honesty is the best policy.This is lying through their teeth, isn't it?
You buy par product for 2 reasons, right? For protection and saving.
Ask yourself can you be adequately covered.Is the return decent, above inflation after 15 years? Can you get 3.5% after 15 years? However, their answer is the return is higher than the bank rate.It is misrepresenting, misleading and cheating again.
The par products can't acheive the above for these reasons.
1.cost of operation has skyrocketed.
2.The CEO's salary is many folds than before.
3.The senior managers' salary also shot through the roof and a lot of money wasted paying many of them.
4.The interest rate low
5.The insurance agents require more incentives to make them sell, push and even con.Incentives like posh meeting places, cash incentives, overseas trips, gifts and vouchers etc.Contests for the agents to see who can con their own policyholders more. All these don't drop from the sky and came out from the ceo's pocket.
6.Frequent ,Big and full page ads in the newspapers and other media
7.etc etc and the list goes on
The cost is stacked so high against the buyers and the consumers don't even know until many years down the road when the policy is reviewed that they realise that they were taken for a ride by their trusted and sweet talking insurance agents.
These products will NEVER get better. Those so called products with a lot of rubbish benefits are thrown in to distract you from the truth. The truth is these products have gone to the dogs and they only feed the agents and the companies to maintain their lifestyle. Why be a sucker?

July 19, 2010 11:11 AM

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