What exactly is life insurance and how does it work?
I don't understand, won't you be dead or something so what does it do for you?
What happens if it doesn't get cashed in, what does that mean?
Sorry I don't understand, please explain.
Nice dig, will replay same to my insurance parasite of agent:pIt is very simple really. You put aside part of your hard earned money, large part of it goes into subsidising the insurance agent's car, housing and lifestyle, the other part of it goes to the insurance company. If you drop dead...will usually do whatever it takes to avoid paying, by claiming certain exemption clause which you never seen when you signed on the dotted line, because you were too busy checking out the insurance agent's "career line".
If nobody claims the money after you drop dead, insurance company will happily keep quiet and and lapse your policy because you have not keep up with the premium payments. But of course now you can't reinstate your policy because they will require a comprehensive health check before they do so, but you are already dead!
Sound like CPF, im so happy every time i received my account statement.
CPF is much simpler.... Think of it as a drain....
It's money down the drain. You have very little hope of getting it back, and by the time you get it back, it'll be too little too late.
It is very simple really. You put aside part of your hard earned money, large part of it goes into subsidising the insurance agent's car, housing and lifestyle, the other part of. ...
I guess from what I have written so far, you can tell I'm not a big fan of insurance.
I thought Singaporean can use CPF to buy house ?
Agent's commission is only entitled for the first few years and, depending on the type of plan you bought, most of the time it's less than 50% of the premium.large part of it goes into subsidising the insurance agent's car, housing and lifestyle,
Only 10% of the profit is paid to shareholders and the rest is paid to policy holders for Participating policies .These insurance companies will take this fund and invest in anything that hopefully make them money to pay the CEO, directors and shareholders.
Provided death benefit is included in your insurance policy, if your policy is more than 1 year; not died from illness that you were diagnosed before buying the insurance and did not declared; not died from illness excluded in your policy contract, the claim procedure is quite strait forward (no kicking and screaming required) and usually payout within weeks if not days .If you drop dead, then the money will be paid back to your estate, somethings not without a lot of kicking and screaming and reluctance on the part of the insurance companies.
Insurance company can only pay what can be paid. In fact sometimes cannot pay one they also pay, out of good will or empathy.They will usually do whatever it takes to avoid paying, by claiming certain exemption clause which you never seen when you signed on the dotted line, because you were too busy checking out the insurance agent's "career line"
If nobody make claims, how the insurance company know that you are dead? By right your agent should be in regular contact with you, if something happen to you he/she will be able to assist your family members about claim matters.If nobody claims the money after you drop dead, insurance company will happily keep quiet and and lapse your policy because you have not keep up with the premium payments.
Provided death benefit is included in your insurance policy (and conditions met according to contract), if you die before policy lapse, your family members can still make a claim.But of course now you can't reinstate your policy because they will require a comprehensive health check before they do so, but you are already dead!
Doesn't work if insurance investigation finds out you kill yourself in order to get a lump sum payment.
You and your family will be disgraced not only lost the precious you.
in short, it means that when you die, someone else gets rich.
It is very simple really. You put aside part of your hard earned money, large part of it goes into subsidising the insurance agent's car, housing and lifestyle, the other part of it goes to the insurance company. These insurance companies will take this fund and invest in anything that hopefully make them money to pay the CEO, directors and shareholders.
If you drop dead, then the money will be paid back to your estate, somethings not without a lot of kicking and screaming and reluctance on the part of the insurance companies. They will usually do whatever it takes to avoid paying, by claiming certain exemption clause which you never seen when you signed on the dotted line, because you were too busy checking out the insurance agent's "career line".
If nobody claims the money after you drop dead, insurance company will happily keep quiet and and lapse your policy because you have not keep up with the premium payments. But of course now you can't reinstate your policy because they will require a comprehensive health check before they do so, but you are already dead!
I guess from what I have written so far, you can tell I'm not a big fan of insurance.
No it's not. Life insurance make use of your money to invest is real investments and actually give you back profits. Ponzi doesn't.Life insurance is like ponzi
Agent got to eat, company have to survive. Nobody work for free. Whatever commissions and fees are not substantial amount compared to the total amount of premiums paid.When you buy agent get com plus company processing fee the money left is what u invest into company or fund manager.
This is true (most of the time). If you buy a policy that has a maturity date, it's best to keep till maturity....when u take out money before maturity date u will lost money or surrender value less than money u invest in.
It's true only if you are talking about investment linked policies or unit trust of lumpsum payment. If other type, it will depends on alot of other factors.The money in the insurance, the fund manager will invest the money . If lost in value u insurance payout will be less than what u invest.
Not true. It's the other way around. Fund manager could be taking less than 3~5%.If profit the fund manager that most of it after deduct 3~5% for customer.
Meaning head fund manager win and customer take small cut .
Erm... this is technically true. However, if insurance company don't make money for you, they don't make money for themselves. If they don't make money for themselves to pay for all the operation costs, they lose money.Lost customer lose.
I don't think there's any fix deposit in sinkie land that gives you 5%. Not even 1 or 2% if I'm not wrong.So for max 5% payout on average not worth it to buy any retirement fund or life insurance if you have money put in fix deposit.
If you have the capital, knowledge, time and energy to monitor the stocks... yes, please go ahead. Please note that stocks/shares, unit trust, investment linked insurance, traditional insurance, are all different things.Better invest yourself to buy stock split into 5 to 10 stock. Less than 5 too risky and more than 10 will make u confuse. Your return rate will be 15% on average for 10 year or more if u are smart.
Most of the agents are only qualified and allowed to recommend funds for you based on your investment risk appetite. Actually if you are really smart, you shouldn't even go thru an insurance agent if your objective is investment. There are platforms that you can make investments to save you some sales charges. You are talking about investment here not insurance.So far I had use my money in CPF to invest in fund that I choose not what stupid agent recommend. So far on average get 10% return for last 10 year better than 2.5% I get from CPF.
Very true. Do your homework before you any how buy and then later blame on the agent or the company.Do your homework before choose.
There are actually many millionaire agents around.If agent so good they are millionaire.
Erm... this is technically true. However, if insurance company don't make money for you, they don't make money for themselves. If they don't make money for themselves to pay for all the operation costs, they lose money.