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Question on TM Legacy Plus PDF Print E-mail
Written by Wilfred Ling   
Sunday, 29 August 2010

Question: “My insurance agent recommended me to buy the TM Legacy Plus with a Dreaded Disease Accelerator Rider covering the life of my daughter. She is coming to 6 years old. My agent quoted me a limited pay 25 years annual premium of $925.60 which covers $200,000 for death, TPD and critical illness. Is this policy worth the purchase?”

Answer: “I have looked at your insurance portfolio. You as a parent is only covered for $100,000 in an ILP. Do you think your family can survive with just this amount? You should cover yourself first before you consider purchasing any life policy for your daughter. Also, why your agent did not recommend a medical insurance for your daughter? Medical insurance is the most important form of insurance for any individual regardless whether young or old. It is likely your agent refuse to recommend this medical insurance because the commission is negative after time and effort.”

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Anonymous   |220.255.7.222 |2010-08-29 03:42:34
For children, 99.99% of financial planners / advisors / consultants / agents will push wholelife and/or endowments for so-called tertiary education planning.

For young adults, 99.99% of financial salespersons will just recommend wholelife (for female customers) and/or regular ILPs (for male customers).

Don't believe? Just call any insurance company to send a rep, or talk to any bank RM. Just say that you are interested to buy insurance protection and ask them to recommend.

After you listen to their marketing sales pitch, ask them to lay out all their recommended products. Ask them to attach the %%% and $$$ terms of the commissions for each of the recommended products. BTW, all regulated financial salespersons are obligated to tell you how they're paid, commissions, fees etc, when you ask them as provided for by MAS Notice.

At the end of the day, they will just push products with the highest commissions, no different from car salesman or furniture salesman or Harvey Norman salesman.
friend  - what is really good   |220.255.7.215 |2010-10-12 09:30:52
I have been reading the postings... its seems that all the available insurance plans are "bad" or "lousy".. can someone tell me what is good? is it going to be term term term and term insurance? I think the MAS would not allow insurance companies to sell whole life and endowment even ILP if they are really that bad. These policies existed for as long as insurance policies started...even before most of you "professionals" even existed. insurance policies had befitted many lives, why arent anybody talking about it? those who had made claims from death, major illnesses from whole life, endowments, ilp should say something, for those who dont know the real benefits of insurance , please stop criticising. Thank you.
Anonymous   |220.255.7.166 |2010-10-13 01:17:09
You must be insurance agent yourself, or your family member is one. MAS allow doesn't mean it is good. MAS also allow things like Minibonds, High Notes etc to be sold to aunties & uncles & man-in-the-street. Also no problem to sell land-banking, oilpods, boron, timeshare, or whatever crap --- all legal and MAS do their own thing. Does this mean all these stuff are good? How much SA wholelife and endowment you buy? How much premiums you pay per year? How much % of your salary you spend on insurance products, if they are so good?

OK. You want to hear about "benefit" of wholelife claim, CI claim?? I have actual case involving my relative who was in her 50s. Her NTUC insurance agent (supposedly a friend of a family member) sold my relative a wholelife plan of only $30K SA, even though the agent knew my relative was only a factory production worker with only $1K take-home pay. Even though SA only $30K, but the premiums already over $2,200 per year or almost $200 if pay monthly. That's 20% of her take-home pay! Why didn't that NTUC agent recommend the LUV plan even though she knew my relative was a Union member? With LUV, my relative could have covered for $100K CI at barely 5% of her take-home pay. And why the insurance agent didn't even bother to review her Medishield cover, to even propose Incomeshield Plan B?!?

Long story short, my relative kena cancer. That NTUC agent MIA. I was living quite close to my relative's place, so I helped them to print out the PDF claim forms, fill them up, attach the supporting medical reports etc and submit to one of NTUC business centres. The family got a cheque for $34K --- what can $34K do for a CI patient and her family?? Pay for coffin and funeral?!? In a sick sort of way, becoz my relative was already diagnosed stage 4 cancer, she told her family not to waste money on treatment, other than basic pain-relief treatment in C-Class Ward covered by Medishield. Also luckily her kids either starting work or finishing their polytechnic studies already.

Learning point: With low-cost LUV, my relative could have covered for over 8X her annual salary. But with high-commission wholelife it was only 2.5X. Isn't this contradicting whatever LIA is saying, that one should be covered for at least 5X and preferably 10X as a rule of thumb?!?

When I was helping my relatives to claim, I saw from the BI that due to her age and cost-of-insurance, her wholelife would never even breakeven, unless she lived until 93 yrs old, or she kena claim. Damned ironic.
Friend   |220.255.7.144 |2010-10-13 10:28:08
Yes, I am an FA myself, in fact I have been in this industry for a long time from tied agency to an FA.
I have seen the transformations in our industry and have felt the change personally. I have delivered numerous claim cheques, one particular case is something I will remember for as long as I live, a bread winner signed 2 policies just over the weekend before he died on Monday. The strong advice for this case is to insure himself because his personal insurance is inadequate to serve as a family income replacement, instead of his children's education needs. But, we end up arguing over the discussion and my advice but his wife know what I was driving at and stood on my side. I knew that his intentions and wants is more the his needs, I do want to walk away without insuring him thus made a point to have him named and insured with waiver of premium and income supplement to his child's plan. (Some readers here will say that I want a sale very badly then.if you are one of those, your mind is biased towards agents) The point is, yes while we agreed both hands and even foot up that Term plan is the most cost effective, but as we do our routine listening, understanding, planning, advicing and educating people on what is best for them, they may not see it... if by insisting on what is right, the case I just discussed would end up nothing for his children. At least from then till his child reaches 18 they have an income and also a promised sum at maturity.
Please, I appeal, dont keep condeming our fellow agents or advisers,those who deserves a beating will be dealth with by the authorities.
I can understand and tolerate if the public criticise our profession because they do not know that each and every situation is different and each type of plans has a role to play somehow.
But, we shouldn't be like them, we should empatise their feelings and educate our fellow friends in trade to do the right thing. keep our heads up.
All insurance plans have their part to play in a person's financial situation. So long as we know what we do and keep our conscience clear, someone will understand it someday.
I dont think I will write anymore , I will leave it to the readers. But to my fellow friends in our industry, stay positive and do your job right. Many people out there needs your service and advice...and make sure all options are made available for them to decide..Thanks and God Bless!
Friend   |182.55.248.232 |2010-10-22 01:49:48
please dont burn the whole forest to find the ONE monkey which stole your banana.. 99.99% that's rubbish. how many advisers have you seen or consulted? You must have been very bad luck to meet so many while there are much more ethical ones... you should complain those who did what is done to you to the authorities and let them handle.
The Watchman  - Conman at work.   |220.255.7.215 |2010-08-29 04:49:30
Emotional selling....the salesman exploited the emotion of his or her customers. The salesmen are good at this and they know the customers' weakness, ie love for his or her child. This is how to convince the customers to put the cart infront of the horse. If not , how to qualify for MDRT, COT or TOT?
There is a saying all insurance agents were taught by their trainers. .It goes like this, "Successful people do what the unsuccessful won't do".
It means this.
"Successful insurance agents will do anything , say anything and stoop to anything the ethical, honest and competent advisers won't dare to do".
Agree   |220.255.7.235 |2010-08-30 05:16:24
Read this comment in the REACH forum about insurance agents.


http://www.reach.gov.sg/YourSay/Discussi onForum/tabid/101/mode/3/Default.aspx?ssFormAction =[[ssBlogThread_VIEW]]&tid=[[232]]
Wilfred   |SAdministrator |2010-08-30 05:38:35
To 2010-08-30 18:16:24,

Your URL not clickable. Can you repost your URL?
Agree   |220.255.7.134 |2010-08-30 10:19:15
http://www.reach.gov.sg/YourSay/DiscussionForum/ta bid/101/mode/3/Default.aspx?ssFormAction=[[ssBlogT hread_VIEW]]&tid=[[232]]
Wilfred   |SAdministrator |2010-08-30 10:35:44
Agree,

You need to encapsulate the URL otherwise the URL seems to contain some escape characters:

http://www.reach.gov.sg/YourSay/DiscussionForum...
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