Read the benefit illustration

I get requests from the public for my views on whether a certain insurance product is suitable for them. I advise them on the following:

a) Ask the agent to provide the benefit illustration to you
b) Ask the agent to explain the full contents of the benefit illustration
c) Insist on a clear explanation on every item in the benefit illustration
d) No not buy the policy until you are convinced that it clearly meets your needs and provide good value for money.
e) Look at the distribution cost and effect of deduction (as explained in my book on financial planning)

I find that most life insurance policies provide poor value as an investment product and should be avoided. I have looked at many benefit illustrations and they tend to confirm my general impression that these products are:

a) high cost
b) give poor value to consumers
c) have a lot of vague and unreliable projections

The only ife insurance policy that you should buy are term insurance for a duration of up to 25 years. These points are explained in my book. I urge you to read my book, rather than ask me to give my views peculiar to the products that is being sold to you.

You can buy my books online at http://www.easysearch.sg/

Tan Kin Lian