Saturday, December 29, 2007

I lost a prospect to Prudential (1)

I lost a case to Prudential because of an ignorant consumer and a typical unethical adviser last week. Something which I cannot believe that it could happen.

Customer have $20,000
Prudential agent recommend
1) $18,000 to be invested into China
2) $2,000 yearly into China via a regular premium Prulink Assurance Plan.
3) Many funny riders added into the Prulink plan consisting of C.I, Death, accident, Hospital Benefit, etc.
4) Prudential Shield Plan

I recommended
1) $10,000 into a global diversified fund, $5,000 into a Asian Equity Fund, $5,000 into a money market fund
2) A regular investment plan into a 70%/30% Equity/Bonds Global portfolio at $150 monthly after conducting a risk profile analysis
3) Term plan specifically targeting Death/PTD/Critical Illnesses
4) Another separate Shield Plan + Personal Accident Plan on standalone basis

I met up with her and she told me about the Prudential proposal. I spent nearly 2 hours explaining to her the charges of Prulink which her agent did not even tell her and nearly 2 hours explaining my proposal.

She recently told me that she had taken up the Prudential proposal after consideration because
1) My investment recommendation get lower returns than her China Fund
2) The agent says that the returns from her China fund will pay off her $2,000 Prulink Premium
3) My Investment plan no insurance cover and I make her buy a separate Term policy
4) My total premium payable is higher than the Prulink because of my term policy
5) The agent told her that NTUC Income insurance cannot buy because hard to claim
6) I proposed 5 policies whereas the Prudential only recommend 3


I really bang the wall when I realised that I lost to the Prudential Agent despite the high charges charged by them and they not disclosing it. I spent one hour over the phone convincing her that she will hold on a big lemon for many years to come and that the agent is not honest with her. I did not stop her on the $18,000 investment into China but I told her that if she trust me, she better stop the $2,000 Prulink plan within the free-look period. (btw, the agent is smart enough to make her pay $2,000 on yearly basis and not monthly basis)
She feel that I'm bad-mouthing the agent and say that her returns from the $18k China fund will help pay off the $2k anyway.

In my next article, I will write why I'm so angry...

11 comments:

Anonymous said...

Wah..Good Story..poor honest Adrian..it seems good guys finish last in financial services sales true or not... any way cheer up..
Friend

Anonymous said...

Adrian, thats life. Sometimes you win and sometimes you don't.

People have to learn their lessons and get burnt.

Anyway, i think it true that NTUC takes a long time to claim and the pay back and coverage is lower.

Recently i went for a long holiday and i took up AIG. They might be a bit more expensive but their coverage is comprehensive.

Vins said...

As common ppl but knows a bit about investment, this is very sad story. Based on your story, prudential allocates almost 100% to one narrow-focused fund. I have experienced this before, when one local bank so-called-Financial-Planner, recommends me Global Property Fund around Feb 2007 with significant amount (for my standard) to gain poor discount 0.5% of 5% sales charge, and convince me that this is low-medium risk fund. I am really beginner at that time, so I decide to take it. As I already read a bit financial news before, I still asked "Is it true that US Prop market is not too good now", he assure me by saying "no, property market is rising star for the past 2-3 years, and everybody needs house". Later, I found out that this fund is actually high-risk fund (based on fundsupermart.com). And as we know, Subprime really hits property market very bad, especially US (which is big portion of Global Property Fund). At the end, I lost almost 30-40%, before I slowly switch the amount to other fund. As I read more financial news, every so-called-financial planner should know that US market is in bad shape since early this year. I try to contact the guy by using email that he gives me around April-May, to ask his advice, what I should do as I lost about 20% already, but no response.

Anonymous said...

Adrian,
Usually, when i promote an investment or savings plan for my client, I wont do intensive comparison with my clients in terms of charges, though I know ours are the lowest in Singapore.

I will just tell them, other pple policies are good, you are good because you make your money work harder, you are clever because you consult me,and the best plan to get is from NTUC Income.

and the best person to buy is from me.

Period!

and I will make the client make the decision.

http://www.helmihakim.com

Khiat Han Hwee Adrian said...

Financial Service is still a sales position. If you cannot open the person's wallet, you may not clinch the deal. As people says," Logic opens the mind. Emotion opens the wallet"

AIG have more items in their travel insurance but certain things are of rare occurence. You might be paying $10 for something that is worthed $5. We should look for the basics when getting Travel Insurance.

Planner in the bank knowing about property crashes due to sub-prime? I don't think he knows that it can be so extensive at that point.
We knows about it but didn't expect to hit so hard. Too many mortgage backed Securities and CDLs had been issued that actually hit these financial institutions.
However, to get your investment at one narrow focused fund may not be right.

Anonymous said...

In project managment, we look at risk assessment. And base on the risk we decide what controls or process we want to put in place to mitigate the risk.

Similar to getting travel insurance. Might be paying more for a wider coverage but still these wide coverage controls put in place. You never know when you actually need it.

Its just like, knowing that parking cost 1 dollar here, i rather take the risk of parking without a coupon and risk being fine $50 dollars with demerit points.

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

Good and honest don't bring in the sale. You learn that selling is a load of bull.if you want ot do well just bull your way through. customers don't know.

Anonymous said...
This comment has been removed by a blog administrator.
Khiat Han Hwee Adrian said...

I had removed 2 comments which I feel are unfair remarks and contain personal attack against others.

Anonymous said...

In your entire story, you have only mentioned that the client has $20,000 but there was no mention of what the client's needs are and what are her wants.

So it is difficult to judge who is in the right or wrong.