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.