Martin Lee @ Sg
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Conned into a Regular Premium Investment Plan

I read this post on a person being conned into take up a regular premium investment-linked plan when she actually wanted a single premium plan.

Thinking it was a $60k lump sum investment, the person was shocked when she was asked to pay premiums of $60k the next year.

If the facts are correct, the agent involved should be charged in the criminal court for a blatant case of cheating.

This will send a strong deterrent to other unscrupulous agents who are doing the same thing. Otherwise, people will continue to cheat and then just leave the industry after they have made their millions.

Nevertheless, as a consumer you should always read what you are signing. If you put your trust in a person who is dishonest, one day you might be caught in a similar situation.

Ultimately, the terms of the policies would have been on the benefit illustration that you are signing. Signing it weakens your cases as it is always a situation of “your word against his word”. If unclear on the terms, bring someone along who can help explain them to you.

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Leave a Comment:

8 comments
KL says 13 years ago

That is why must always be hardworking in comparing products, even if the agent tell you no point comparing since products are similar. This was what almost happened to me when I met up with Great Eastern agents few weeks ago. I never regretted spending that effort

Reply
Daniel P says 13 years ago

My personal experience is I bought policies from friends, people who were very difficult to turn down.

Reply
James Tan says 13 years ago

Timely advice. However, do you not agree of the following?

1) All insurance agents must be credited by MAS.
2) All insurance policies have a window period of 7 days, within which none is binding or enforceable.
3) One must get at least 2-3 quotes from 2-3 different insurance companies for comparison & cross checking of benefits.

Reply
    lioninvestor says 13 years ago

    Dear James,

    1) MAS no longer does the checks for financial advisers.

    2) There is a 14 day free look for insurance policies but people usually find out about problems many years later.

    3) It is always good to cross-reference what anyone tells you.

    Reply
The Watchman says 13 years ago

The agent pretended and put it under regular ILP instead of RSP(regular single premium or recurrent premium). The difference in commission is huge, right? The agent wasn’t stupid. It is very clear a conjob.
Another job pulled off

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Daniel P says 13 years ago

I find it surprising that the agent did not realise the client would hv no money to pay the 2nd year’s premium, would the agent not realise that the scam would blow up 1 year later ?

Reply
    lioninvestor says 13 years ago

    Dear Daniel,

    By then, the agent would have made his commissions and perhaps even left the industry.

    Reply
The Watchman says 13 years ago

These crooks can’t escape even they leave the industry..Even they are dead their estate will be kenna.-ed. Crime has no time bar. The only problem is aggrieved customers are unwilling to take action against the agents and for some the agents are thier relatives or friends or they are clueless about their rights of recourse.

Although huge, the Thank You” policy is just the tip of the iceberg. We will hearing more of it when it goes to court when the beans will be spilled over a large area.

MAS must do something about it.Ban the commission and make compliance with section 27 a must.
Show that you are a 1st world regulator.Walk the talk and not like chicken backside.

Reply
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