Insurance
madam sabrina tan
By Patrick Lim  •  February 6, 2010
Photo by Tony the Misfit
Photo by Tony the Misfit
ST ONLINE FORUM - Hit Hard by insurance policy termination
I BOUGHT three policies from Prudential for my children 15 years ago. Recently, due to a need for cash, I decided to terminate one of the policies. To my shock and disappointment, the amount I am getting back upon surrendering the policy equates to less than 50 per cent of my contribution in the last 15 years. I can understand if the early termination results in an 80 per cent return, but 50 per cent? The customer service officer told me that given the crisis last year, policyholders did not have good bonuses and therefore the drop in value. So my questions are: How can the year's bonus affect 50 per cent of my investment because a good bonus does not double my principal sum. Is there an organisation in Singapore that ensures that policyholders are being protected? As much as there are risks, what about those who have invested for 30 years hoping to get a good return only to be given the same answer? Will the authorities please look into this so all of us who hope to retire well by investing in insurance policies will not lose a substantial amount of our hard-earned cash. Sabrina Tan (Mdm)
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By Patrick Lim
Patrick is an Associate Director with Promiseland. He has more than 20 years of personal investment experience both in stock and shares and unit trusts. In his early years as an investor, he got burnt really bad in the infamous 1987 crash and again during the clob incident. With 2 decades of so-called battle scars behind him, the last few years (since 2003) have been good to him especially with his single country funds doing exceptionally well. On his investing style, he is both a technical analyst and fundamentalist. Patrick view wealth accumulation as part and parcel of the wealth management process but only if one has already executed his/her wealth protection planning on an on-going basis.
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