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Do not be misled by this kind of dishonest sales approach
03 Aug 2017 (72 views)

Hi Mr Tan,
Recently an representative from X (an insurance company) approached me who trying to is sell a unit trust plan that allows investor to collect dividends til death (Sounds interesting, so is it the case if everybody buy this then no need CPF LIFE?)

It works as follows:
1) Invest with a minimum of $250 per month ($3,000 p.a) for at least 3 straight years.
2) To collect more dividends, one may opt to top up at anytime including during and after the first 3 years.
3) There is a 168% top up from X per promotion.
4) The representative send me an Projection which is on the Excel attached and other information attached below.
5) No insurance component at all.

I am wondering if this is a good plan that can be recommended to my friends / parents or not and I will appreciate if you could provide the inputs, including if I have missed any vital information.

REPLY
Here are the key points.

a) The rep is selling you an investment linked policy.
b) The rep is required by regulation to give you a Benefit Illustration according to a prescribed format. I did not see this Benefit Illustration.
c) The Benefit Illustration tells you about the charges that is taken away from your savings. It is likely to be very high.
d) You can report the rep for failing to give you the required information that could lead you to lose several tens of thousand dollars.
e) Do not be deceived by the point that you will get dividend for life. If you invest in any company share or investment fund, you will also receive dividend for as life, so long as the company is still around.


Do not be misled by this kind of dishonest sales approach
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Hi Mr Tan,
Recently an representative from X (an insurance company) approached me who trying to is sell a unit trust plan that allows investor to collect dividends til death (Sounds interesting, so is it the case if everybody buy this then no need CPF LIFE?)

It works as follows:
1) Invest with a minimum of $250 per month ($3,000 p.a) for at least 3 straight years.
2) To collect more dividends, one may opt to top up at anytime including during and after the first 3 years.
3) There is a 168% top up from X per promotion.
4) The representative send me an Projection which is on the Excel attached and other information attached below.
5) No insurance component at all.

I am wondering if this is a good plan that can be recommended to my friends / parents or not and I will appreciate if you could provide the inputs, including if I have missed any vital information.

REPLY
Here are the key points.

a) The rep is selling you an investment linked policy.
b) The rep is required by regulation to give you a Benefit Illustration according to a prescribed format. I did not see this Benefit Illustration.
c) The Benefit Illustration tells you about the charges that is taken away from your savings. It is likely to be very high.
d) You can report the rep for failing to give you the required information that could lead you to lose several tens of thousand dollars.
e) Do not be deceived by the point that you will get dividend for life. If you invest in any company share or investment fund, you will also receive dividend for as life, so long as the company is still around.