Buy Insurance direct - Financial advisors ho seh liao

[Lala81]

 

SINGAPORE: People in Singapore will be able to buy certain types of life insurance products directly from insurance companies starting next year, saving on commissions. This is according to the Monetary Authority of Singapore (MAS), which said on Wednesday (July 30) that all insurance companies that serve the retail market will have to offer the following direct purchase products:

(a) Term life insurance products with Total Permanent Disability (TPD) cover;

(b) Whole life insurance products with TPD cover; and

© Optional critical illness (CI) rider attached to term life or whole life insurance products.

Consumers who wish to buy direct purchase products will still be subject to underwriting by the insurer, MAS said. "When direct purchase products are introduced in early 2015, they will provide consumers who do not require advice with cheaper access to selected life insurance products," Mr Lee Boon Ngiap, Assistant Managing Director for Capital Markets at MAS, said in a statement. "Consumers will benefit from the greater price competition that will be introduced between the direct and commission-based channels."

MAS said consumers who are unfamiliar with financial products should approach their financial advisory representatives for financial advice. According to MAS, the features of these direct purchase products will be broadly standardised to make them easier for consumers to understand and purchase without the need for financial advice.

For term life insurance, direct purchase products will comprise three variations in the policy coverage period, with the premium payment period matching the policy coverage period. These are: five years, with renewability feature; 20 years; and up to age 65. For whole life insurance, direct purchase products will comprise two variations in the premium payment period: payment up to age 70 and payment up to age 85.

The maximum sum assured for direct purchase products will be set at S$400,000, with a sub-limit of S$200,000 for whole life products, on a "per person per insurer" basis. For more details about the insurance plans that will be available online, which is an initiative under the Financial Advisory Industry Review (FAIR), click:http://www.mas.gov.sg/news-and-publications/media-releases/2014/buying-life-insurance-products-directly-from-insurance-companies-without-commissions.aspx

[Watwheels]

Wah, insurance agents must be very sad.

[Wt_know]

in the near future

agent, dealer, sales executive, all can jiak sai liao

Edited July 30, 2014 by Wt_know

[Vid]

Insurance co. want to jiak ka liao

Edited July 30, 2014 by Vid

[Lala81]

I pity my financial advisor man. Quite hard to tan jiak like that.

[Staff69]

The pretty sexy ones will not be affected.

[Kangadrool]

don't worry, they don't make much $$$ from these policies. This is like loose change to them. But, be prepared to get hard sold into toxic investment-related policies.

 

 

[Soya]

Tink my insurance guy happy. Make him come over exprain dis n dat n I onli bought a term cover. Tried to hard sell me ILP but told him to save his breath. His petrol n time prob cost more than his comm......

[Ktglfc]

Save on the middle men, and get straight answer from the source :)

[Lala81]

I think they earn quite a bit from whole life also what right?

Term i guess not much but still spare change ...

 

don't worry, they don't make much $$$ from these policies. This is like loose change to them. But, be prepared to get hard sold into toxic investment-related policies.

 

[Darthrevan]

makes it even easier for clients to obtain 'special services'

[Mustank]

(term life + term critical illness) already can buy direct from insurance companmy already what

 

got simi SAF Group term insurance, safra group term insurance,

 

got agent tell me why buy all these group term insurance, they donm cover after 65

but he never tell me after 65, his insurance coverage cost how much

knn, want to bluff ginna

[Freestylers09]

(term life + term critical illness) already can buy direct from insurance companmy already what

 

got simi SAF Group term insurance, safra group term insurance,

 

got agent tell me why buy all these group term insurance, they donm cover after 65

but he never tell me after 65, his insurance coverage cost how much

knn, want to bluff ginna

 

 

there is after 80+ one for term

 

but expensive and must say before hand..

 

default is 60+ iirc

 

and true that term is most wu hua one..

 

those can take back $ etc one...lost inflation till teng kor..lol

[Soya]

(term life + term critical illness) already can buy direct from insurance companmy already what

 

got simi SAF Group term insurance, safra group term insurance,

 

got agent tell me why buy all these group term insurance, they donm cover after 65

but he never tell me after 65, his insurance coverage cost how much

knn, want to bluff ginna

 

 

after 65, the kids grown up liao and dun need to guarantee them a fat inheritance when one KO.

[Lala81]

(term life + term critical illness) already can buy direct from insurance companmy already what

 

got simi SAF Group term insurance, safra group term insurance,

 

got agent tell me why buy all these group term insurance, they donm cover after 65

but he never tell me after 65, his insurance coverage cost how much

knn, want to bluff ginna

 

? Whole life premium is usually fixed at time of purchase. Now most premiums are paid over a period of say 10-20 years. After that no need to pay anymore. Unlikely just cos of age your premium will increase.

Term is different.

Whole life is also subject to bonus amount being added to the insurance. So instead of 200k, u may be insured for about 220k years down the road.

 

I think a mixture of whole life and term is probably the best way to go forward. but maybe 70 term - 30 whole life.

[Soya]

 

? Whole life premium is usually fixed at time of purchase. Now most premiums are paid over a period of say 10-20 years. After that no need to pay anymore. Unlikely just cos of age your premium will increase.

Term is different.

Whole life is also subject to bonus amount being added to the insurance. So instead of 200k, u may be insured for about 220k years down the road.

 

I think a mixture of whole life and term is probably the best way to go forward. but maybe 70 term - 30 whole life.

 

Whole life insurance incl "investment" component. the actual insurance coverage is very low compared to the premiums paid.

 

Tink one can get better returns investing the $$ themselves without a 20-yr lock-in and juz go for max coverage under term insurance.

 

As the famous saying goes: "Buy Term, Invest The Rest."

[Lala81]

 

Whole life insurance incl "investment" component. the actual insurance coverage is very low compared to the premiums paid.

 

Tink one can get better returns investing the $$ themselves without a 20-yr lock-in and juz go for max coverage under term insurance.

 

As the famous saying goes: "Buy Term, Invest The Rest."

 

What you are suggesting is an all or nothing approach. Best left to the savvy investor who's going to get his returns consistently over a long period of time.

 

Personally i advocate a 70-30 or 80-20 split betw term and life.

I don't believe in endowment, ILP etc. But whole life does have some benefits to it.

[Ysc3]

since on this subject, any idea if there is any short term, like 5 years savings plan on the market ?

 

I have very low risk appetite and prefer safe savings ... like putting in FD ... but as we all know FD sucks .... so alternative is finding a short term policy and putting a lump sum into it and collecting the returns at the end of 5 years ?

 

read some ins sites .. but all are : you PAY for 5 years and then COLLECT after 10 years.

 

any pay one time and collect in 5 years ?