In this short article, I will show how insurance products are mis-sold to unsuspecting customers. This article also serves as an education short write-up for existing financial advisers because they are often trained to mis-sell in these fashion: The unsuspecting public would often be approached by an insurance salesperson who will propose an insurance product as saving element. The customer … [Read more...]
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The financial advisory industry in Singapore is notorious for mis-selling. I hope to highlight this issue through this blog
Question on non-disclosure for insurance application
Question: “Dear Wilfred, I suffered from QQQ 10 years ago. I could not work for 2 days and was on MC. My doctor gave me medication and there was no relapse since. I applied for an insurance but my agent told me that I do not need to declare this condition. The policy was incepted already. Regards – M” Dear M, Due to deliberate non-disclosure, you have breached the principle of utmost good … [Read more...]
Can you tell me which insurer has the worse reputation?
I am not able to tell you this in the public as the insurers will be quick to issue lawyers’ letters to me. Nevertheless, in Singapore history many insurers have earned themselves a very poor reputation for mis-representations and treating their policyholders unfairly by focusing too much on profitability. The older policyholders will know which of these insurers are but the younger customers will … [Read more...]
What does Monetary Authority of Singapore (MAS) has to say about commissions?
According to Monetary Authority of Singapore, commissions elict a self-interest culture: "...having remuneration structures that rely primarily on commissions, or which are biased towards rewarding staff for recommending certain investment products is untenable. It will inevitably elicit a culture where the institution and its representatives are more concerned about their own revenue … [Read more...]
Insurance Adviser selling free gifts
I was at SingPost that day queueing up to post registered mails when i noticed that all counterstaff were quite persuasive to get each customers to sign up for some free gifts. The customer in front of me showed interest and was redirected to a Prudential insurance adviser. It seems to me that the Prudential adviser had to explain to the customer what this free gift is and how he could get it. For … [Read more...]
Why is an ILP considered inferior/ a time bomb?
The regular premium investment linked product is an essentially a combination of 1 year renewable term PLUS investment. Since the life insurer does not provide value add service by managing the risk of the underlying investment, there is no reason to buy such a product. It will be more straightforward just to buy a separate term insurance and invest the difference (which is what an ILP does). Here … [Read more...]
The Ayam Buah Keluak Cheat
There was one Sunday which my family visited a food court. There was a stall which claim to sell “Nonya” food. So my wife bought the Ayam Buah Keluak. The outcome turn out to be anything but Ayam Buah Keluak. The stall did a short cut in the manner it cook Ayam Buah Keluak. The curry gravy used is meant for Asam fish. Before I continue, it is indeed true that the dish's gravy is indeed the asam … [Read more...]
Paying Your Investment Advisor – Fees Or Commissions?
Read this webpage here: http://www.investopedia.com/articles/basics/04/022704.asp Although it seems to be written in American context, it seems quite relevant to Singapore. Here are my comments: The article stated that it is a misconception that financial adviser work for free. This I agree. The article says that some commission-based advisers are tempted to engaging their clients in … [Read more...]
Tastless Free Financial Health Check
I was at Takashimaya and found a road-show by an insurer. There was two large banners which say it provides a free financial health check and another on how to “Win Takashimaya vouchers” When I see that, I find it there is really lack of taste. There is also no sense of professionalism and pride. Although I respect the advisers who are trying to earn a decent living, I really feel sad for them to … [Read more...]
Are you paying 42% extra in insurance?
People want to tighten their belt especially in this time of recessionary environment. They save like crazy and try to spend only on the necessity. If it is possible, get rid of insurance policies – which I agree especially those useless one. But how about those insurance policies that are needed? Many people do not realize that they are spending too much in insurance. I did a brief survey and … [Read more...]
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