Assign a 'primary' menu


Many times, we thought that our friend or acquaintance who promotes life insurance and savings plans through the insurance companies should be the best or most sort after. What we often don’t know is, how feasible is our investment vehicle, or if our investment with our “buddies” meet our investment needs in that particular time, economy, and our situation. We often overlook the actual investment returns or benefits it bring by only LISTENING to the “GOOD” side of it because that’s what we’re being told by our friends right?

Now I don’t mean to sound rude or trying to say that we shouldn’t trust our friends who are in the “financial planning” business. My point is, do we ask enough of questions regarding our commitment into an investment product, do we actually read through the fine prints of an investment before we jump into it. Do we ask advices from the “correct” financial advisor? Or just simply any “insurance agent”? Asking opinions and advices from the wrong “insurance or financial advisor” is like a patient going to the hospital and ask the nurse for a surgical advice on your body.

I’ve recently encountered a situation where a good friend of mine was being misled into investing in what we call an “annuity”, where she needs to keep her invested monies in the account until the maturity date. Her initial understanding was that she can withdraw the investment anytime within the first few years whenever she needs it not knowing there’s a penalty if she do so. Besides, she was told that the average return was 19% a year by the “insurance agent”. Most people who aren’t in the industry would believe because the illustration shows. However, most fail to realize that he or she needs to contribute consistently the same investment amount for a number of years. When that happens, the average returns shown in the illustration will NOT be 19% anymore.

After she found out about the truth to her policy she bought, she was upset and felt cheated. Guess what? Her trust towards “insurance agents” had gone sour. The name of being an “insurance agent” is tarnished. These are the so-called insurance agents who are out there for a quick buck will eventually need to face huge consequences to recover their lack of integrity. Which might take an eternity sometimes.

This is one of the reasons why people condemn insurance companies and their products. I have recorded the actual “audio recordings” of a real life discussion between my friend and her insurance agent while being an observer myself.

It will be uploaded into my next article soon after this post. Stay tuned.



About the Author Edgar Pong

Leave a Comment: