Mistakes In Insurance

There is an insurance company in Asia that is Great. It is located in the Eastern part of Asia. When I had started working, I bought a life insurance with investment from it. In the printout, the cash value when the insured reached an age of 65 years old was indicated as S$322,917. In a recent insurance statement reflecting the expected cash value as at 65 years old was indicated as S$171,889. The statement was given 15 years from commencement as part of government requirements for insurance companies to show the expected value of the insurance, it was not shown earlier. The expected cash is lowered by $151,028 which is negative deviation of 87.9%.

I was Greatly disappointed by the tremendous drop in the expected payout when I reach 65 years old. Previous statements had not indicated this expected payout. Obviously, I had written to the company asking for explanation. The reason given was that the expected payout was not guaranteed and that due to the low interest rate environment, the bonus rates were revised downwards in 1996 and 2001. Similarly, my other policies with this company were affected.

The financial implication is that I have to work much longer before retirement and that insurance investment is still not a good tool for saving for retirement. I would urge you to check your insurance on your coverage to ensure that they are worthy of supporting your retirement plans. Caveat emptor shall apply.