Personal Finance
More Reasons Why You Shouldn’t Get a Long-term Insurance Savings Plan, and What to Do if You Already Have One
By Sethisfy  •  May 23, 2020
In my previous article, I expounded on why one shouldn’t purchase a long-term savings plan. If the list isn’t compelling enough, here are a couple more reasons why it’s a bad idea to commit to decades-long insurance savings plans, and what you can do if you have purchased one.

No incentive for agent to provide continuing service

As mentioned in my previous article, such plans come with high upfront commissions which eats up the time-value of your savings. A disgruntled Hayley tried to correct me by saying that the customer is paying “distribution costs” and not commissions, which I find really disingenuous. What makes up the overwhelming bulk of these distribution costs? Commissions. And commissions incentivise people to behave one way or another. Need I spell the obvious? By its very nature, commissions are meant to incentivise people to sell, sell, sell. Upfront commissions exacerbates this problem. When you...
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By Sethisfy
As an adult, I’ve been through many ups and downs in my career path and personal finance journey, not unlike many Singaporeans. From my years as a tied insurance agent turned independent financial adviser, I realised that there are very few sources of proper, unbiased financial advice for working adults to access. Worse, self-styled “financial consultants” are selling products like savings plans and ILPs to the detriment of the clients whose interests they were supposed to serve.
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