Tuesday, September 14, 2010

Whole Life vs Term Insurance

Watch this youtube video to explain why you should buy term insurance and invest the difference.

3 comments:

zhummmeng said...

Wholelife has been a scam product and all scam products are profitable, to the company and the agents and the suckers are the buyers.
WLs' cost goes up and up but never told to the buyers. Why? becuase the company silently sucks away the cash value.The longer the buyers keep the more money the insurer makes.The agents told you it is for wholelife because they collude with their benefactor the insurer to fleece you for wholelife. WL means whole life income and revenue for the insurer.
Saving? where is the saving? Do you need to borrow your own money? Do you own the cash value? If yes, why borrow and pay AH Long San interest rates?Did you know the insurers love you borrowing? APL? Did your agents tell you this? Any warning in the BIs?
Why no disclosure on material facts?
When you die do the policies pay you the cash value? No!!!!the insurers pay the sum insured and the bonus WITHOUT the cash value.
But cash value is yours , right? When you die the proceed should include the protection value and the cash value. Did your agent tell you that or did you know this?
You see, what disclosure? MAS said the FAA is disclosure based and mandatory that the agents disclosure EVERYTHING so that you can make INFORMED DECISION. So how did you make informed decision with INCOMPLETE INFO?
Consumers, you are short changed. You have been taken for a ride as suckers. No wonder they say, the agents say, that every second a sucker is born and that is more than enough suckers to con for life.
WL is a scam? for want of better word.

zhummmeng said...

Read what the PM said about disclosure in 1999 when he gave a keynote speech at a insurance conference.

Enhanced Disclosure Standards

"As we move closer to a caveat emptor environment, we must enhance
disclosure standards across all financial services, including
insurance, to enable investors and customers to make informed decisions.
Disclosure is especially important for life insurance products, as the
commitment is generally long-term, and the structure of benefits too
complex for most consumers to understand fully without adequate
disclosure.

Policyholders should be entitled to know the details of the
remuneration of his financial intermediary and the other expenses
incurred by the insurer. This will allow them to better understand
whether they are getting value for money. It will also help them to
compare a proposal against similar products by other insurance
companies, and also other financial institutions."

yujuan said...

Zhummeng

Thanks. We do not realise proceeds
payout omit the cash value of policies, until you pointed this out in your comments. Now we look at insurance agents with suspicion and contempt if they follow the norm in their sales talk, i.e. non disclosure of such information.

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