Latest: an edited version of this letter was published in the Straits Times Forum page on 4 January 2011. See
http://www.straitstimes.com/STForum/Story/STIStory_751527.html
...http://www.straitstimes.com/STForum/Story/STIStory_751527.html
Editor
Forum Page
Straits Times
I wish to give a different angle to the points raised by Jimmy Koh ("Don't give in to pressure against new insurance test", ST 27 Dec).
Mr. Koh argued that the new test is necessary "to equip insurance gents ... to advice their clients properly and fairly on ... investment linked policies". I am afraid that, like the proverbial dog, the advocates of this approach are "barking up the wrong tree".
Most investment-linked policies have high charges that take away more than 40% of the accumulated savings from the consumers. Although this is disclosed in the benefit illustration, how many consumers know about it? How many insurance agents point this out to the consumer? Even if the consumer asks about the high charges, ...