Friday, October 15, 2010

Half truths about Life Insurance (3)

Agents use half truths to get their friends to buy a life insurance policy. Here are some of the half truths that they give.

For a long time, I thought that it was the agent who learned how to mislead their friends. After talking to many undergraduates, I now suspect that they (the undergraduate who sell the policies) were not aware about the truth of life insurance. They were taught to tell the half truths by their agency managers. They (the new agent) thought that they were giving good advice to their friends, but they did not realize that the actual truths was quite far away from what they were saying.

I hope that the new agents will read my book on financial planning or attend my talk. Then, they can decide if they still wish to sell the policies that take away so much money from their friend's future savings. If they do not wish to harm their friend's future, the agent should consider taking another occupation.

Tan Kin Lian

1 comment:

zhummmeng said...

Have you heard of the SALAD OIL SCANDAL?
"One of the worst corporate scandals of its time. It occurred when Allied Crude Vegetable Oil Company discovered that banks would make loans secured by its salad oil inventory.

When the ships full of salad oil would arrive in the docks, inspectors would test it and confirm that the ship was full of salad oil. However, the company didn't remind anyone that oil floats on water. They had filled salad oil tanks with water and put a few feet of oil on top, fooling everyone. The company would even transfer oil to different tanks while taking inspectors out to lunch. In 1963, the scam was busted and over $175 million worth of salad oil was missing."

This is what insurance agents are using, "the Salad Oil ruse" to con their clients.. A little bit of truth(oil) and the rest lies(water). This is taught to the agents in the insurance companies.
Another one is , 'if the customers don't ask don't tell. The training department is actually teaching the agents how to con the customers into buying.

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