Much has been said about the benefits of term insurance.
However, even though I’m a proponent of term insurance, I find it hard to buy term insurance.
Why?
I’ll explain in a moment.
Meanwhile, did you read the recent Sunday Times article that was sort of promoting term insurance?
It’s a good article (read it here if you haven’t), BUT the author completely misses the mark when she said “changing mindsets (of customers) is not easy”.
Come on. It’s the mindset of insurance agents that needs changing!
When I asked about term cover, all my agents seemed uninterested in selling these low cost products. They either talked about the downside of term insurance (no return, temporary protection, blah), or happily ignored my queries and continued marketing their investment-linked products with high projected returns.
I literally had to force my agent to sell me term insurance. Why is it so hard?
Do you think these agents genuinely care for you when they say term insurance is not as good as life or endowment policies?
Come on. 9.5 out of 10 agents care about their commissions more than anything else. The other 0.5 will learn that naivety leads to nowhere.
That’s why term policies are still not common. People who don’t do their own research won’t get such info from their commission-driven agents, and these agents won’t volunteer such info unless forced to.
And Sunday Times writers wonder why consumer mindsets are so fixated…
You don’t believe that insurance agents are reluctant to sell term policies? Want proof?
Here’s a comment on the Sunday Times article from an ex-insurance agent (link):
“I once used to be an insurance sale rep.with one of the major American ins. company.WE were told to emphasize mainly on whole life ins. policy to our clients than term ins. policy even though the latter is much cheaper and has a higher coverage.This is because,we could have earned a much higher commission for myself if we sell more of the previous.After a thorough research and analizing the difference Btw. whole-life and term life,I myself and my family members are also sold to the idea of term ins.”
Want more proof? Try asking your own agent about term cover.
If you know where to buy term insurance easily, let me know.
73 Comments
I went directly to NTUC Income and skipped the insurance agents. You can try this site as well http://www.insupermart.com/term_insurance.html
My last good insurance agent told me that term insurance became very popular. I bought it from him from 2001.
Term insurance is only good if you are investing the leftovers.
Aviva has an SAF-Aviva scheme too
Just for the info.
Ex-agent comments:
Insurance companies are operated on their agency levels & each agency have their own way of operating. MAS also step up the regulations on insurance. Hence, the past agent comment may not be the whole correct at this age.
Term vs whole
Term is good for protection but not good for attaching riders as the chance of lapsing policy is high (rider follows term). It would be sad if the the riders lapsed when you need it most. It would be even better to buy some ILP products which offer coverage similar to whole life but give the freedom to the owner to increase or decrease the sum assured during required period. Do not place high hope on the Non-guaranteed portion with big surrender return.
Each insurance company favour to different markets just like Ferrari vs QQ cars. Both could bring us to the same destination. Backpack hotels vs 5-star hotels which also offer place to rest & sleep at night. Or closer to life insurance, just compare the claim procedures & times on your car insurance.
There are people out there who are good and bad. For me, as a real professional, it’s our duty to highlight the pros and cons of each product and recommend the plan that fulfill the client’s most. Unless the client know exactly what he wants. Individuals needs are varied from each other. Some know how to invest and they have discipline in their investment planning. Of course,buy term and invest strategy will work. However, Need to bear in mind that, the rest of the money invested are meant to provide the coverage when the term plan is no longer in force.
Some don’t want to pay till old and want coverage for life. then whole life is suitable for them. Well my company never trained me to promote particular products and in fact Manulife has strict policy to advise on client’s need. Planner have their own professionalism to advise the client needs, thus in my point of view it’s unfair to hold the old school perception for planner.
Personal banker are the one whom are forced to sell the product without having analysis of client’s need and no one complain that much. Thus, it’s time to change the perception of client.
I guess it’s a matter of client’s preference and that as professional, we have to outline the pros and cons and they themselves decide. I don’t think it’s fair to say the 0.5 percentile who does sell term insurance will learn that naivety leads to nowhere. I personally will buy term for myself but only in certain short term situation whereby I feel my family needs it during those important period. I have many clients about age 40+ who rejected term insurance when i offered to them to at least cover till age 70 because they felt it is just washing money down the drain. When they saw the high premium for Whole Life, they also procrastinate. I guess educating the clients is more important in these aspects. They must understand that delaying the idea of insurance will only lead to heavier premium in older age and they have to accept that if they want some cover.
I do not agree on the remark where insurance agents are trained to sell whole-life or ILP over term insurance. Nowadays, MAS & companies emphasize on providing client centric service where client’s needs are at top priority over our own interest. As part of the sharing, a good mix of term and life insurance would be better than putting all of your $ into just term OR whole-life/ILP insurance. This ensures sufficient coverage throughout your life stages (with term expiring at age 70) and your whole life plan can provide you with suffice coverage from age 70 till your demise. I am currently covered for $250k life and $400k term and I am from Manulife.
Happy insuring!
I went to ur recommendation http://www.insupermart.com and found that it is quite easy to buy term insurance online. I am pretty surprised how easy it was going thru the steps…
Yeah… good recommentation…
Me too went to http://www.insupermart.com to buy my term insurance. Realised that they also sell Travel insurance and went there to buy my Travel insurance for my recent trip too… Quite a hassle free process
I’ve bought insurance online at the NTUC Income website too. It was relatively easy, although it did take a while for the policy to be mailed.
I’m from an IFA, and I know even within the IFA spectrum, there are “ethical” and “not-so-ethical” (for the lack of a better word) agents.
For me, my practice is always letting clients make the informed choice. As in, let them know the pros and cons of the financial/investment tools they are going into. One example: http://www.waynekoh.com/2008/07/btitr-part2.html
Personally, I prefer a balanced mix of Whole-Life + BTITR.
That’s why it’s good to be in IFA, coz there are a variety of tools that we can mix & match, although it is impossible for us to know everything.
I used to work for one of the largest insurance companies in the world based in the UK, HK and Singapore.
Basically, insurance agents get their commission upfront. So if a customer is paying $500 per month for the next 20 years, I get the commission upfront for the next 20 years.
Whoever who cannot find any agent to sell you term, please email me at [email protected] stating your name, date of birth, sex, smoker or non-smoker follow by the amount of cover and years to cover. I will be able to provide you the lowest term cover you can find in Singapore beside group term insurance like the SAF, SAFRA or Civil Servant plan. – http://teaengpeng.blogspot.com
Oh by the way, you can also buy term directly at https://biznet.income.com.sg/Online/uiTerm/uiPOEMSForm.aspx
Just remember to put my name TEA ENG PENG before clicking on the calculate premium. 🙂
I have done a comparison between SAF GTI and 2 other insurers’ term plans, posted at http://www.waynekoh.com/2008/08/saf-group-term-insurance.html
SAF’s may not be the best value for money.
hey have some pretty good ones that my friend referred. If you still need em, let me know.
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Well, I am a strong supporter of term insurance
as term cost is low but it will meet the cost of living for a family for a good numbers of years.
if an agent do not wish to sell it then it must be for their own personal interests..as mentioned
earlier by a reader or a ex agent working for a
american company.
low commission..But my point is our stands and
our code of ethic is to place our client’s interests before ours…
if you do not have term insurance..it is definitely that you do not have enough money for
providing to meet your family obligation for a period long enough….if an agent only talk about their commision then they are putting their clients and their love ones at higher risk.
drop this agent and move on to another one..
before it is too late…..
the problem is that good agents don’t make much and will disappear in no time. it’s the same with all relationship managers, personal financial consultants in banks, and property agents. however the root cause is that singaporeans are mostly stupid, so unethical agents and even unethical monks can continue to exploit them. that’s why you see hello kitty queues and condo queues and they cry when the monk climbs buildings. ethical agents don’t last and they give up after losing a lot of business to the unethical ones. sometimes in this strange world the madoffs and ming yis are the winners for a long long time, long after you can sustain yourself with your miserable ethical commissions.
I PERSONALLY KNOW OF AGENTS THAT ARE ETHICAL AND LASTED MORE THAN 20 YEARS.
NOT ONE OR TWO BUT QUITE A HANDFUL OF THEM.
THOUGH THEY ARE RARE BUT STILL THERE ARE SOME.
WHY LET THE AGENT TAKE CONTROL OF YOUR FINANCIAL
SECURITY ? AS A CLIENT , YOU DICTATE AND TAKE
CONTROL OF WHAT YOU WANT TO ACHIEVE.
IF AN AGENT IS NOT CONCERN FOR YOUR LOVE ONES WHEN RECOMENDATION ARE MADE , THEN STOP DEALING
WITH THEM, WHY SHOULD YOU SUFFER AND CONTINUE TO MAKE THEM RICH AND GET AWAY WITH IT..
YOU BUY INSURANCE FOR THE SAKE OF YOUR FAMILY AND NOT FOR THE AGENT’S FAMILY..
dearest adrian, will you be my agent? 🙂
hi adrianna,
how do I get in touch with you ?
I will be please to share with you more.
hi my dear all in all
investment is a choice but protection is a need
term insurance offers real high coverage at affordable cost for lost of income needs
where else investment has its limitations.
term plan provides the required amount needed
and it can be determined before hand.
in my point of view…a basic policy provides
for breakfasts for a family..but a term plan will provides the rests for a same cost.
a thought to share
Insurance premium should not be seen as
a problem but to be view as a solution
to our family financial security.
dear readers,
A friend of mine introduce me to a new
website.
singaporeinsurance.org
pretty interesting
saw my last comment a least a year back, did not realise this thread is so active recently. Anyway, I have lots of clients with term insurance and it is really a matter of individual preference and they appreciate my frankness in the differences and that they are willing to accept the fact that the coverage will be temporary only. At the end of the day, I believe that ethical and honest advisor do and will stay long in the business. =)
..and really, the most important thing is still the human touch in the insurance industry and not just the cheapest product. IF you dont feel the advisor is being honest, change him/her immediately
adrianna, where are you ?
Why did pp say term has temp coverage only? And some even say it last only till 70 yrs of age. A good IFA will tell you there are term insurance which cover a person till 99 years old. HSBC do sell them. There is also a decreasing term insurance whereby the coverage will decrease gradually over the coverage period.
May i know where to get CHEAP AND GOOD term life policy, for at least 25 years?
tks
I guess cheap and good usually don’t come together and I don’t want to give you false hope. You may want to seek different options before making a decision.
try ntuc income. just walk in to any of their offices and ask for a quotation on the spot.
I recently got Aviva’s Level Term plan. Price better than NTUC Income (to my surprise). Ask around for a few quotes will be good for comparision. Can also get thru an IFA agent.
Hi CW, I recommend NTUC, Tokio marine (it absorbed TM Asia Life), and Aviva. I’m not an agent. I myself bought from these three about a year ago.
Thanks guys.
I saw in a blog, forgotten the link.A non smoker man , age 33 got a tpd + death coverage for a million, 25 years term for $128.50 p.m.
It is cheaper than NTUC I-term.
At the end of the day there is no free ride. Different policies will suit suit different people and in many cases a combination of several policies might be the ideal option for some people.
I have personally had one company defer my application for an enhanced shield plan while another accepted it on with some exclusions which was better then nothing. The type of risk different companies take varies. Sometimes cheaper premiums can be achieved by taking on only less”risky” clients or by reducing payouts.
Look for a good adviser who puts the clients needs ahead of commissions. All the insurance companies will have promotions to “push” certain products however a good adviser will still not deviate from the basic tenets of clients needs first.
Look for a good adviser who puts the clients needs ahead of commissions. All the insurance companies will have promotions to “push” certain products however a good adviser will still not deviate from the basic tenets of clients needs first.
I can offer a good solution for your term insurance needs. not sure how you guys can contact me. feel free to leave me a post.
I am an insurance broker which represent many insurance companies in one go, some points to add when one consider buying policy:
-In my view, Shield plan should be upgraded, even one cannot pay the cash rider, just upgrade the Medisave portion first. However, many pp scare to discuss.
-The rest of the policies are optional according to personal needs. One policy/type may be suitable to different people, as long as meet the need. Not everyone prefer term as not everyone know/willing to invest.
-When the incident really happen, any policy that one have also good.
-Buying direct from the insurance company does not offer client any discount but have to go Q-up/time off vs agent will go & meet the client at their convenient time. Try making a call to any company the so call “Hotline”.
-One company does not offer all good products. Some may offer best rate for smoker, some may be for non-smoker, some policy give good protection, another may offer good return (same group of policy, e.g. life vs life or endow vs endow).
One company policy will unlikely the same as the other, example, one may be inclusive of personal accident/TPD in there or another does not. TPD could be paying what I call 1+1=1 (from existing sum insured) or 1+1=2 (additional). Some only cover 30 CI, another cover TI as well. Sometime competitor will launch a new product which is even cheaper/better than its own existing one without informing the existing policy holder.
I doubt any advisor will actually want to “push” for the shield plan.
Compare is the best.
I personally do encourage upgrading the shield plans and to date every single one of my clients has upgraded with no exceptions. I feel that if you have dependents (especially young children and if you are the sole breadwinner) it is not just important but very critical to have a term policy due to the high cover you can get at low cost. All other plans have an investment component which is good for savings but the cover is typically low and leaves the client very exposed.
There is good and bad for whole life or term insurance. Better dont be too extreme. Though historical, investment is a better option to get better returns. But it is such an unpredictable world nowadays.
Most illnesses example cancer is more frequent especially at later age after 65 years old.
Casio, Cancer can happen at any age. Not neccessary more frequent after 65. It is a matter of when it is discovered.
Hi all, am just saw this blog… wanna to find out how to get quote for term insurance. are they online or I have to go through agent?
Thanks
Michelle,
Unless you know exactly what you want it would be better to talk to an adviser so that you understand the pros and cons of the different plans so that you make an informed choice. If you want more information feel free to drop me a line.
Thanks GS. would you be able to provide me with more info please? thanks.
Hi Michelle,
You can contact me at [email protected]
Hi Michelle,
If you like to purchase it online ,you can always do it yourself at http://www.income.com.sg, I knew some people who really bought it themselves at this website. However it is always good to have a adviser/consultant to plan for you. Going through adviser/consultant will ensure you are well informed on your decision. Buying it yourself online will be useful for people with experience.
I am also an expert in this area of term life insurance and whole life insurance. If you don’t mind , you can also contact me at [email protected] to provide you with info
Cheers!
Cheng
I would not recommend purchasing online as there is a lot of information you might not get when trying to make comparisons. If you are only considering pricing then I can safely say that there will never be an insurer who will have the cheapest products in every category. For example concerning term policies, one insurer might offer the best price for term policies below 1 million but there might be another insurer who may be cheaper in the 1 million + category. The best way to approach it is identify your needs and based on that check around if you are looking for the cheapest (not that I advocate cheapest policies) as there are many other factors that would influence your decision like service level, how fast claims are processed etc.
What’s the difference between Term Insurance vs Personal Accident Insurance ? Apparently the premiums of Accident Insurance is cheaper than Term unless the cost of premium changes with age (Term Insurance premium also changes with age?)
Maybe I didnt get my facts correct after listening to too many agents selling their products. Probably if I get a Term Insurance, I dont need an Accident Insurance?
Any advise on this please ?