Leaving You Underinsured Creates Repeat Business

Imagine having a doctor who purposefully does not treat you completely such that you would constantly remain sick, thus having to visit the doctor repeatedly, each time paying for his services and medication. I am not familiar with the medical fraternity in Singapore and I trust that most doctors do their jobs ethically, but I know for a fact that the local financial industry thrives on this unethical practice.

I recently met a client who bought an investment-linked policy recommended to her by her friend which provided poor coverage while being taxing on her monthly budgeting.

What’s sad was what the agent wrote in the point-of-sale documents to justify the sale of the policy – an ostensibly apologetic “client to increase coverage when financially better”. It shows that the agent was fully aware that such a policy underinsures her client and yet deemed it fit to recommend her friend the policy. It is particularly upsetting since the client had specifically indicated her concern was (quite rightfully, for her profile) insurance coverage with her limited budget.

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Have Been Busy

I apologise for not updating this blog as I have been busy over the past few months. Further to that, in order to focus and spend quality time on my existing cases, I will only be able to take on new clients on a case-by-case basis for the time being.

If you need my services, please use the contact form and briefly describe your personal profile and financial objectives so that I can better evaluate if I am able to assist you.

Thank you.

Using Effect of Deductions to Measure Insurance Policies

“Effect of Deductions” is a column found in insurance policies with cash values. What exactly is “Effect of Deductions”? It can be summed up in an equation:

Value of Premium Paid – Total Cash Value = Effect of Deductions

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TM Legacy Plus Revision

That was quick – mere weeks after Aviva launched its whole life policy, Tokio Marine has announced revisions to its flagship policy – TM Legacy Plus.

The biggest change would probably be the upgrade in the Minimum Benefit, or Minimum Protection Value, which I have touched on before. The MB factor used to be 2.5 for people 24 years and below, meaning a $100,000 policy will cover the person for $250,000. It was 2.0 for someone between 25 to 29, 1.8 between 30 – 34 and decreases for people in older age groups.

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