Bear in mind, when we talk about investment, there is no guarantee.

There's no guaranteed return like FD or savings. Those figures you saw in prospectus/policy are projected values.

<< If you salary is 30k annually, in 10 years (provided no incremental) u will hav work ur way to 300k. If you cannot <<work>> tommorrow for the rest of your life, how long do you WANT to survive? How long CAN you survive with ur savings now?>>

In sell, we called this as "bait and switch". In Malaysia, we sell life insurance. It is NOT disability insurance.

1) It does NOT protect against all circumstances where you cannot work

2) It does NOT pay you forever if you do not work. It pays you certain amount of money and that money WILL NOT last you forever

The bottom line is buying life insurance protect against something but it has limitation.

Here we go again. You are just telling people that you need to buy this and that. You DO NOT tell people exactly what it protects and what it does not protect.

For me as an example, I have enough savings to last at least 10 years. I am self insured.

Yes. But, if that investment has higher risk BUT the return is less than FD because of all the fees, why am I buying it??

A higher risk investment need to be at least has higher return than FD or else why bother taking the risk??


Yes, you are correct. But, you could find out about all the fees and exactly how much of your insurance premium is actually invested.

Let use some common sense here.

A) You can buy unit trust directly and you pay commission to unit trust agent.

B) Now, you are buying unit trust from insurance agent and paying commission to both insurance agent and unit trust agent.

Does it takes any critical thinking to realize that you will pay MORE fee in (A) or (B)?? This is what you are doing when you buy investment linked insurance.

Dreamer

Greetings EveryOne,

Recently I came across with a Prudential Insurance Agent ... and what she proposed to me is the PruLink Plan 3 .. AnyOne currently hook on to this insurance plan .. which seems to be working as a plan with savings and protection at the same time ?

Regards,
Hughie

dreamer, there IS disability insurance. They pay u even when u don't work for a week bcos kena denggi or chicken pox or whatever that put u out of work, temporary or permanent.

U asking me to list out what insurance protects and what it doesn't? well boy there are so many types of insurance and many can be customize. There is no ONE answer. Like seeing a doctor, u got cold, they give u cold medicine. U got cough, they give u cough medicine. It still depends on YOUR needs, YOUR problem. Yes everything has its limitation. No ULTIMATE product.

Do you find any ULTIMATE handphone? Do you find any ULTIMATE car? Do you find any ULTIMATE char kuey teow? If you find any ULTIMATE product, please do list it here. I wan to have one.

To me insurance are suppose to be what they suppose to be, insurance. Nothing else, if it is investment linked, it's just a bonus, that's all.

When you buy an insurance policy, ensure that it serves its purpsoe. Don't make it as an investment or savings opportunity. You can have that on other alternatives; FD, UT, FOREX, shares and etc.

<< there IS disability insurance>>

Show me the web site and the product information. Then, I can tell you why it is NOT a disability insurance.

Dreamer

Bingo. That is the whole point of my argument. People are persuaded by insurance agents that they can use insurance as saving and investment scheme. Then, they buy a lot more insurance than they need. Plus, they have no idea how much fees that they are paying for the additional savings and investment option. In a lot of cases, the return is MUCH MUCH less than FD.

They should have buy less insurance and put the money in FD instead.

People who have buy insurance with 10% of their income is definitely buying TOO MUCH insurance.

Dreamer

Greetings Guys,
I was wondering isn't those packages that comes with some opportunity as a saving solution work out as well ? From what I heard from the agent .. basically more than 70% of the monthly commitment goes to the protection stage whereas the balance goes for the savings portion. When the maturity of the insurance policy you bought .. comes to an end .. the savings will be able to withdraw ..

1) Why are you paying insurance agent commission to keep 30% of your money every month??

2) Do you know how much fee that you are paying for doing that??

3) Have you compare how much return that you will have if you just keep 30% of that money and put in FD instead?

4) Do you know how to do that kind of calculation??

Insurance agents are laughing their way to bank for helping you to save your money.

Dreamer

Dreamer,
Do you know what is concept selling? Think outside the box please. And i tought u r a 'dreamer' zzzz....

Example again...a car.
Real purpose = travel from point A to point B.
Why do some ppl put turbo in their car?
Other purpose = Can travel fast with style.
Why do some ppl buy MPV?
Other purpose = Carry heavier load
Other purpose = Safety features.

I bet u r not in sales.

Hughie,
Do clarify with the agent that the return is only a 'projected' return and not guarantee. If she says guarantee, ask her come see me i oso wan to buy. If you want SAVINGS and protection, go for whole life policy. Investment-link only serve for big protection + medical card.
In whole life, there is a guarantee portion for your return, hence the savings u get.

1) My statements applies to whole life policy too. The guaranteed return in most cases is less than FD.

2) BTW, I used to be a sales manager. I just choose to be honest in telling my customer on exactly what they are buying. And, I was successful in selling with integrity.

Dreamer

P.S.: The problem is NOT in selling. You are an insurance agent. Your goal is to sell as much insurance as possible and collect HUGE commission. If someone is STUPID enough to buy too much insurance and giving money freely to you, they deserve whatever they are getting.

It is NOT in your best interest to educate your customer on how to buy RIGHT amount of insurance.

This post has been edited by dreamer101: Dec 8 2006, 04:48 AM

Its our job to ADVISE and RECOMMEND. Its up to the ppl to take it or not. And most of the time we are selling our SERVICE. We probably serve you for the rest of your life or our life. It is not a one-time deal. It is a lifetime deal.

U know how much it cost overhead to keep the business running? With petrol and toll rising everyday other month? U know how many errands we need to run?

U keep repeating we are laughing all the way to the bank. Go ahead save all your money in FD. The bank is laughing in their bank.

Is this the BEST that you can do?? You have NO information or data to prove that my calculation and assumption is WRONG?

I am waiting for you to show a REAL example where whole life insurance is good deal.

I am so disappointed!!!

Dreamer

You are a non-believer. No matter what facts and data i show to you, you will not be satisfied. I've posted the website url for anything on insurance. You've choosed to ignored it.

I've wasted enough of time in this. So to anything you will post again here, my answer is 'whatever'.

To those who are reasonable enough and wanted to know more about insurance, do post your question. Will try my best to answer.

PS: This is strictly my opinion, might not appear to be general opinion.

lets make it simple.... its ur job to sell insurance and take comission as high as u can coz u also need to live ma... so, its a fact that agent does think mainly ab comission.... btw, r u jus started to work? coz the way u say really like a freshie.. " wan to b honest "


no offense though.....

2 years ++...

Your job is to work and take salary as high as u can coz u also need to live rite?

Ya, a handful of agents (not all) are not responsible at all, they are selling insurance for the sake of getting commission, they don't care about customers whether the customers need it or have been overbought. Bare in mind, overbought an insurance serve no purposes instead increase the months expenses burden.

For rich people, insurance is needless although majority still buy it since no harm done because they have enough money to survive their whole life and for their children. For low income group, not much can be saved every months, where got money for insurance purposes. Personal view that insurance is more suit to middle class people.

I agree there are 2 insurances that are essential, life and medical. But buying it with the amount which is affordable relative to your income. Otherwise, you are looking for trouble only since if you surrender halfway, you loss a lot.

I think the most stupid insurance is that monthly premium that pay for buying UT. Why not buying directly from UT company if you want to invest in UT?

Edit: Agents should explain to customers the purposes of an insurance for, coverage, returns (if any), details about it and not just say that is the service (insurance) I got for you, buy it or not while scare people off the loss of income, depandants etc. It is the obligation to explain not service.

This post has been edited by cherroy: Dec 8 2006, 04:43 PM

Alot of upper/rich class ppl buy insurance bcos its estate is creditor-proof. Also bcos the return is tax-free.

Ok to help all the agent provide better understanding of customer's need, I hope everyone that browse this topic who hav bought insurance, mind if you state the MAIN reason u buy it and why you bought from that particular agent.

This will educate us, the agents, to explain the importance of insurance to customer. Thank you!