Nobody likes to be overcharged for anything, but when it comes to buying an insurance policy, many people are! If you have been buying insurance from the same company and never bother to compare products from other companies, chances are, you may have been overcharged! After 16 years in the business, I continue to be shocked whenever I meet people who would simply commit to a multi-year insurance policy without doing a comparison. They are doing themselves big disfavor! Are you one of these people? When buying other product, most people enjoy shopping around for a better deal, or a different design, better quality or features that meet their needs. But when it comes to purchasing of insurance, many people will simply buy a large policy (and commit over many years!) without checking around for a better deal! Maybe comparing insurance is really difficult, or people don’t think it is necessary? Here’s a simple example to show why it is necessary to compare. Take a 35 years old male, non-smoker, looking to be insured for $1,000,000 against death and TPD, over 30 years term. The same product varies quite significantly in premium, from the cheapest at $954.81 and the most expensive of $1,513 a year, name of insurance company masked out. That’s a difference of $558 a year! Over the full term of 30 years, a total difference of $16,745 !!! How can anyone not bother to compare?! $16.7k is no small change…. And term policy is really only one of the simplest products to compare. There are more complicated ones, and the premium is not the only reason why you need to compare. To do this properly, you will need to engage the advise of a competent INDEPENDENT financial adviser, not the regular insurance agent. Other mistakes that I commonly spotted are people who may actually buy the wrong product, e.g. they need critical illness coverage but was sold an endowment policy at a roadshow. Or people getting the wrong coverage, either too high or too low, and overpaying for their policy. The good news is, if you do not know if you have been overcharged, we provide a quick service call Independent Insurance Portfolio Audit. Just message me to enquire at siaklim@fapl.sg Most likely the service can be done over email and a phone call. If there is a need to meet, the first meeting is complimentary.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
More than 20 years in the financial advisory business, focus on mainly help people achieve a comfortable retirement through portfolio management, with diversification to reduce the votaility and still achieving the required rate of return.
Also helps wealthy family (>$3m estate, including property, investment and insurance proceeds) pass on their wealth to future generations, minimizing the 3C, confusion, cost, and conflict. Estate planning is probably best done by a qualified experienced financial adviser rather than a lawyer. The lawyer is able to draft a will, but because he is not a financial adviser, he is usually unable to put comprehensive financial consideration into the design of the will. Will drafting is a mechanical process that software can easily generate, there is little value. It is the architecting of a wealth distribution strategy with creative financial products and ideas that is the real value.
