Insurance
Same apple that cost so different
By Akhiat  •  June 18, 2008
By: Adrian Khiat wicker-cornucopia-of-red-apples.jpgWhen I was a tied agent, I often thought that premium of similar coverage from different insurance companies should be somehow similar. Pricing difference are expected but shouldn't be too far apart. I thought that the market is efficient enough to identify rapidly if a plan is over or underpriced. I thought the market is somehow competitive and Insurance companies should be pricing their plans approximately the same. But I was dead wrong... I had a busy weekend making plans comparison from different insurance companies. I realised the difficulty in comparing plans because insurance companies like to attach some features unique to the plan. By doing that, they can price their plans differently as nobody will know how much the unique feature cost. Its up to the Adviser's capability to sell on the unique feature which normally come at a price. This is normally the case for Traditional Policies like Whole Life and Education Plans. To make a more direct apple to apple comparison, I decided to illustrate a Critical Illnesses Term Insurance here. ust to quote an example of a 30 yrs old male getting a 30years $250k CI, death, PTD coverage. The lowest I get is $1,084.60/yr and the highest I get is $1,854.00. The rest are in the region of $1,300 and $1,400. Some are guaranteed renewable, some are not. There are some difference between each plans but not as complicated compared to Traditional Policies. Read more...
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By Akhiat
Adrian entered the Financial Advisory Industry in Feb'03 after years in the Shipping and Logistics Arena. He joined the industry with a strong belief that the public need better advice in their financial plan. "It is a big challenge to me till today because I am not a natural Sales Person. However I want to remove public's perception that Financial Adviser are all Salespeople. It is a professional job that deserve more respect. I want to impart my methodology, skills and knowledge to help you improve your Financial Health and to share health tips to improve your Physical Health."
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