High charges

Dear Mr. Tan,

In my foolishness, I bought an ILP from company X. After paying premiums for a few years, I was surprised to find out that my investment is still way below the invested amount.

I asked the agent for an explanation. He pointed out to me, from the policy contract, that the percentage of my premiums that was invested during the first few years, only a certain percentage was invested (starting at 20% for the first year). This was not explained to me when I bought the policy.

Why should the insurance company take away so much of my premiums? I wish to get out of this policy, but I will have to lose more nearly two years of my savings. What is your advice? Should I cancel the policy?

REPLY
If you have not been property informed about the charges, you can make a complaint to this organisation,
http://www.fidrec.com.sg/website/faq.html

The insurance adviser is required to explain to you about the key points of the contract and to recommend a financial product that suits your needs. If he or she has failed in this duty, you should make a complaint.

If more consumers are willing to come forward, this will help other consumers from being misled.