Insurance
A good life insurance policy
By Tan Kin Lian  •  January 20, 2011
I have often been asked, "is this a good life insurance policy?"

If this policy is being sold to you by an agent, you can be 90% sure that it is a bad policy. The agent (who can also have a title such as financial adviser or consultant) is likely to offer you a policy that requires you to pay a big monthly premium and gives you a poor yield. But the agent will sound impressive, as he or she has been specially trained in marketing and telling (exaggerating) the benefits of the policy.

Here is a simple test: if the policy provides pure protection (i.e against death or critical illness), ask the agent to get you a comparison of the premium rates charged by other insurance policies on similar policies. You should pay an annual premium of not more than $500. If the agent is not willing ......
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By Tan Kin Lian
Mr Tan Kin Lian (fomer NTUC Income CEO) started his insurance career in 1966 in a local life insurance company. He has also worked in various positions as a computer programmer, organisation and methods officer and consulting actuary. Mr Tan writes daily in his blog. The information in his blog is transparent and has an open approach.
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1 Comments

One response to “A good life insurance policy”

  1. Wow, I should read this before my wife bought a policy from an agent :(

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