Someone I know just lost $5k on insurance

teguh123

teguh123

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Sep 13, 2007
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The agent offer investments

The customer ask that the insurance portion is small and the rest are investments.

The agent says that all money are invested.

The customer read the contract and found nothing suspicious. Because the benefit of insurance is small, he doesn't check the "insurance" part of the contract.

Turns out all the money invested is gone mainly to pay the sales agent.

The agent justifies that all money are invested because unit link is "long term investments".

Do we have cases like this in US? In Indonesia most insurance companies are selling things like this.

I wonder if there is any legitimate american/singaporean insurance company I can promote in Indonesia.
 


I have health insurance with BUPA and I think they're really good since they covered the costs of all of my medical issues without any deductible. They're a UK company and mainly deal in health insurance worldwide.

A lot of insurance companies are scummy, and insurance sales agents are the biggest pieces of shit on the planet. Never trust anything they say, and always read the contract in full.
 
Yea well, the thing is the part of the contract that says that all money invested go to acquisition fee are not easily found. Especially if the agent already said all are invested.
 
The problem is the acquisition fee is not part of the original investment, these sales agents are all the time trying to float the boat of the superiors and in the end all it does is bring down the total pool of funds and cause the issues you described, when you invest in a long term contract you need to make sure the acquisition fee is not part of the original investment, but at least a 15% fee on the total pool that will be paid over the next 9-13 months.

This only applies if you bring with you a lawyer or outside agent that can confirm the quality of the details, because otherwise you're just bringing yourself to the table without a noose, and then the sales agents rub their hands together because they know you have a second of a clue.

So make sure the portion of the investment is only over 15% or under 13% of the premium. Remember the excess is usually massive to discourage you from even making a claim and just paying out of pocket privately. It's how they profit.

After a car accident, my insurance company imported new parts and sprayed them to match the colour of my car. After 9 years the paint started peeling off. I took it back to them and they have a lifetime warranty on repairs, so I'm getting my car repainted for free. It's a 1977 Chrysler new Yorker, so not a bad deal at the end of the day. It's the only time you profit from an insurance company.
 
In Indonesia, the cost is 230% of one year premi. I wonder how insurance agent can sell their insurance in US?

In Indonesia calling everything is invested even though most aren't do not necessarily mean fraud.
 
Doesn't health insurance come free with employment? tHat's how it is in America, not sure about Indonesia.

But if you're a freelancer, like most of us, then I guess you're stuck in the "buy your own insurance" portion.
 
he's not interested on the insurance part. The agen say that all are invested. So there is a little insurance benefit. That little insurance benefit is sold at very high price.
 
galacon said:
Did nobody catch this? Really?
Click to expand...

seriously, the US has become clownville.

latest
 
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