Monday, December 31, 2007

I lost a Prospect to Prudential (2)

I am angry not because I lost a business. Its due to the way I lost it. It was the unfair comparisons, unethical selling and unfound allegations which I believe is rampant in this industry. Such acts are damaging the professionalism of Financial Planners and image of true planners will remain as a Salesman image to the public. Let me show you what I meant by Unfair Comparison, Unethical Selling and Unfound Allegations

1. Unfair Comparison
The Riders in the Prulink assurance is not free. The premium is taken away from the premium and the eventual amount invested is reduced.

Eg of charges as below:
Female non-smoker, age 31 ($100k Death/PTD/CI)
Death / PTD - $6.17/mth
Critical Illnesses - $8.01/mth
Total - $14.18/mth

When reached 55 yrs old ($100k Death/PTD/CI)
Death / PTD - $40.28/mth
Critical Illnesses - $72.98/mth
Total - $113.26/mth

My Level Term of $100k till age 59 is
$39.10/mth same coverage as above
My $100k Accidental Term plan only cost her $70/yr


2) Unethical Selling
Too many to write about. To point out a few.
a) I conducted a Risk analysis and found client to be of Medium Risk. The agent probably infuse greed into client and make her a high risk profiler to buy everything into China.
b) Past performance does not indicate future returns. The idea of using China Fund profits to pay for a regular premium plan is a bad one.
c) The low allocation rate is not explained properly
Year 1 - 15%
Year 2 to 3 - 50%
Year 4 to 9- 100%
Year 10 onwards - 105%
*My client put in $2,000/yr. Advisory Charges = $3,700 out of $6,000 put in during first 3 yrs
d) My client are advised to put premium payment on yearly basis
* It reduces the effect of Dollar-cost averaging and risk is increased.
* Client can't do anything after the 14 free-look period. She guaranteed lost $1,700 overnight.
e) Client can easily invest her $18,000 and top-up $2,000 a year if her main objective is to save and get a separate Term insurance. The $2,000/yr shouldn't go into another policy.


3) Unfound Allegations
* MAS control the insurance industry strictly. There is no such thing as an Insurance Company not paying claims.
* As long as the person is able to provide the required information and the policy stated it is allowable, then surely this is claimable.
* For the part of NTUC Income, such allegations are rampant because
a) Previous Motor Insurance claims experiences spread to the Life Insurances. Other insurers no such problem.
b) Average Education and Income Level of many Income Policyholders are probably lower than other companies. Hence lack of understand causes misunderstandings.
c) Income agents used to be largely formed by part-timers, lack of proper explanation in the past may be one of the factor.


Anonymous said...

NTUC belongs to?

Colin said...

Yup, I would agree the point that some of Prudential agent are lack of the real concept of financial planning but i would not say all. I reviewd one of my friend plan they set her protection only 12,000 and that's her only investment linked policy. For me I'll advise my client to get protected before adivse them to move to investment stage. I think the portfolio should be really diversified normally i'll advise my client to spread over four funds which is estabilished more than 2yrs and have slightly above the benchmark performance.

However, I have doubt about term plan also. Is term plan can provide enough coverage after expiry age, even though premium is cheap. would it not be better idea to recommend wholelife if he/she can afford? I'm just sharing my thought, I'm a new planner and i just lost my client to NTUC for the reason of being cheap :D

Anonymous said...

The problem is you are also a salesman. No where you mentioned that you conducted a need analysis with the client. Your client saw you a salesamn and therefore natural for client to make product comparison . Despite having a superior product you lost the deal. Why? the difference was the selling skill or bullshitting skill, that is what all salesmen have,.
NTUC have lots of this kind of salesmen and women. So don't call the kettle black, NTUC agents are the pots and pans of the insurance industry. it is well known that they lack skill. You are the first planner with CPF. The rest have a pair of biforked tongue that can twist and turn at will, very well trained.

Anonymous said...

You see, the liars at work.
sales is about how good you can lie and misrepresnt. that prudential cheat won the case because he could lie better than you.
in your own place you can see those who make good can lie very well. go to roadshow you can see how they lie and misrepresent the revosave and vivolife. They win. they close. customers love to hear lies also. when one love ot hear the lies the other tell the sale is closed, right.

Anonymous said...

Now you are talking about ethics.
Right in your own company, in your court yard, ethics is daily broken, deliberately, wilfully and wilefuly
by ntuc agents.
Clean up your house and speak for what you believe.
I know you are Mr. Clean. My advice is to stay clean.