No, it is not a scam.

Insurance works like it should. You pay a premium just in case you have an accident. Same for cars/house/etc.

Even MNCs or large companies have employee insurance, building Insurance, equipment insurance etc.

All insurance products are vetted by bank Negara. There is no special one, only a cheaper or better packaged one. Some add in more coverage, some give you more benefit, some last you longer in life, etc.

Weakest link of any insurance companies is the agents themselves. Because insurance products can be adjusted to adapt to different people, it depends on agents to tailor it for you depending on your income yearly, your needs, your disposable income, your age, health etc.

Those unscrupulous agents who only want to seek max profit will sell you the moon for a dollar in order to get you to sign up. False verbal promises, bad explanation, bad representation etc. They don't care about you the customer, they only care about their bottom line.


Which is why it is always good to have an honest friend as an agent. They are fair and treat you right. All agents need to make money, but it is important for them to be honest what they are selling and what is promised must be delivered.

For them it is a numbers game. The more they signed up, the more of them keep paying premium, the more commission they get over next 6-7 years. Good agents that get popular will get more referrals. Just beware of the bad apples. Luckily nowadays got internet can really compare products and premiums.



This post has been edited by Skidd Chung: Jun 6 2018, 07:11 AM