According to a survey done in the United States, financial advisers often do not discuss life insurance with their clients. According to the study, 47 percent of U.S. adults who have a financial adviser and have life insurance said their advisers have never reviewed their existing life insurance policy with them.

There is no similar survey done in Singapore but we can infer that this is also the case. As at 4 August 2011 statement, LIA statistics shows that out of $2.34 billion paid to policyholders and beneficiaries, only $218 million were death, critical illness or disability claims. This means insurance payout was only 0.218/2.34 = 9.3% of the payment. The remaining 90.7% was due to policy that matured (i.e. these were saving plans).

I think it is time the industry revisit its fundamentals in insurance.

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Anonymous   |220.255.2.40 |2011-08-26 11:33:17 Wilfred, How come LIA report no report the sum assured sold or the average claim amount like last time? Why? Reply | Quote 0   0

Anonymous   |220.255.1.139 |2011-08-26 16:04:00 2009 was the last year that LIA reported for those figures. I suspect now too many criticisms on blogs, forums and other social media that it has become too embarrassing to keep highlighting. Especially after Goh Chok Tong's exhortation to the insurance industry to do the right thing at NTUC's 40th anniversary dinner in 2010. I wonder who was GCT's financial adviser back in the 1970s such that he knew to buy term insurance to adequately cover himself? And of course at that time, civil servants had "free" medical coverage so this aspect was no issue to him. Btw, the 90.7% insurance payout is not only for maturing policies like endowments, but also for surrendered policies. Majority of people who buy wholelife don't keep for whole life, but surrender when they become jobless or retired. Problem is that the premiums for wholelife is expensive because the insurance companies expect the policyholder or his family to actually make a claim on the wholelife, and not to surrender it. If you surrender it simply means you have been overpaying all these years i.e. the insurance company wins, you lose. Reply | Quote 0   0

Anonymous   |220.255.2.23 |2011-08-27 14:04:16 Why stopped? cannot justify the numbers, right? You see, they know and yet LIA refused to remedy the situation. Even MAS spoke about this matter on several occasions and SM Goh spoke directly to the ntuc managements and the greedy salesmen present , they all fell on deaf ears.NTUC just launched another scam product called vivocare and soon vivocare will replace vivolife because agents will engage in twisting and replacement. LIA is a write off and has lost its credibility. But what about MAS, the regulator? another toothless wayang maker in the pay of the FIs? Has enforcement conducted? It looks like the power to change lies with the consumers. Consumers must wake to realise what you have been sold craps.You have been sold because you were clueless about these products.That is why you were dumped with useless products that benefit the insurance salesmen and the companies at your expense. When can you 'BUY" based on informed decision? Reply | Quote 0   0

Wilfred  - re:   |SAdministrator |2011-08-26 13:01:06 Seems LIA has stopped publishing it for sometime already. Anonymous wrote: Wilfred, How come LIA report no report the sum assured sold or the average claim amount like last time? Why? Reply | Quote 0   0

Anonymous   |220.255.2.88 |2011-09-03 10:31:17 The recent Wikileaks discloses among other issues the following about ST Editors and reporting; "He cited how during the 2008 collapse of Lehman Brothers, there was a spate of sympathetic articles about the retirees who lost money in the mini-bonds, which was followed soon after by the government's decision to assist those retirees." That is if the press and Mr. Tan Kin Lian didn't report and didn't come to the help of retiree investors the govt would have hushed it up. As in the words of SM Goh, little should be said about the debacles so as not to detabalise the information sensitive markets. What does it say? It means the govt is protecting the financial institutions and NOT the consumers.That is why the FIs , especially the insurance companies and the insurance agents continue to OPENLY con the public with dubious products and approach. MAS will drag the new guidelines like the CKA for as long as possible so as to allow more churning and more agents to make more money for themselves and the companies. The CKA was proposed 2 years ago and it will not implemented until Jan 2012. Then another 6 months to a years for the churning and incompetent agents to con more consumers before the 'enforcement' deadline and passing the exam. MAS is never for the consumers.. It is pro business, pro FIs. For consumers die is your business. Consumers have to be careful when dealing with insurance agents.To start with , please remember that whole life and endwoment products and their variations are NEVER good for you if they are good for the insurance agents. What is good for the salesmen is Never good for the buyers. Never deal with aagents who have MDRT, COT or TOT on their name card.I guarantee you they are ALL crooks and conmen and women. Ask yourself how did they qualify? MDRT is based on commission 'earned'. You think they earned a lot of commission to help you put in place a financial plan or achieve your goals?... Reply | Quote 0   0

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