May 2 2009, 08:18 PM
QUOTE(imtrobin @ May 1 2009, 10:29 PM)
I see a number of insurance topics and I just wanted to share my experience about buying investment linked insurance, which I feel is a very poor financial decision.
My mum bought a investment linked life policy about 20 years ago. The agent told her she would get back 60K++ upon maturity. We still have the paper document on that. My mum is illterate, so she trusted the agent who was her friend and bought it. Luckily, all was well we didn't need to make any claims. Fast forward to now, she received a letter stating the policy would mature in two more years, but she would only get back 18K.
I can understand if the amount is 50K even 40K but at 18K, it is 70% difference. I wrote in to the bank asking them why the amount differed so much. Their explanations was due to poor investment made in 1997, that's why it was so low. I don't buy that, I gonna write to Bank Negara and maybe sue them for false selling (anyone can help?).
Anyway, personally I do buy insurance but without investment. I pay a fixed sum yearly which covers everything in case of hospitalization to death. My premium is only 15% compared to an investment linked policy. My insurance agent always try to psycho me to buy investment linked polices, saying one must always invest. No thanks, I will use the 85% of not paying the premium and invest on my own. The insurance companies can't invest better, and the only reason they want to sell you investment is besides comission, they get 5% of the investment performance. Look at my mum's case, they got all their comission all these years, and the losing end is people like my mum.
If you have any investment linked insurance, check your maturity value. You can probably do a lot better financially than to leave it to the "experts". For those who will ask anway, the insurance policy is from Hong Leong Assuarance.
I am sorry to hear this, but as an insurance agent, I have to tell you that those figure they told you on what you going to get in 20 years is estimated amount and subject to economy and the investment method they have made.My mum bought a investment linked life policy about 20 years ago. The agent told her she would get back 60K++ upon maturity. We still have the paper document on that. My mum is illterate, so she trusted the agent who was her friend and bought it. Luckily, all was well we didn't need to make any claims. Fast forward to now, she received a letter stating the policy would mature in two more years, but she would only get back 18K.
I can understand if the amount is 50K even 40K but at 18K, it is 70% difference. I wrote in to the bank asking them why the amount differed so much. Their explanations was due to poor investment made in 1997, that's why it was so low. I don't buy that, I gonna write to Bank Negara and maybe sue them for false selling (anyone can help?).
Anyway, personally I do buy insurance but without investment. I pay a fixed sum yearly which covers everything in case of hospitalization to death. My premium is only 15% compared to an investment linked policy. My insurance agent always try to psycho me to buy investment linked polices, saying one must always invest. No thanks, I will use the 85% of not paying the premium and invest on my own. The insurance companies can't invest better, and the only reason they want to sell you investment is besides comission, they get 5% of the investment performance. Look at my mum's case, they got all their comission all these years, and the losing end is people like my mum.
If you have any investment linked insurance, check your maturity value. You can probably do a lot better financially than to leave it to the "experts". For those who will ask anway, the insurance policy is from Hong Leong Assuarance.
As you know, there is no 100% assurance on investment. Say you invested in mutual funds and they tell you that you will get return of 20% in 3 years, is it true? It can be true and it can be more or less isnt it? How they know it will be 20% in 3 years? It is just estimated amount based on historical performance only.
Another saying is that if you invest yourself in shares, can you assure that there will be return?
Of course you can sue the insurance agent, but you will never succeed cause investment is investment, not savings.
Hope you can distinguish the difference.
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