Recently i have been doing a couple of prospecting session together with my agents and again i met alot of people having the same problem. What is the problem then?

Yes, the problem was that most of them are having a regular endowment saving plan from insurance company as their first policy! Some of them even took up a saving plan that amounts to 20% of what they take home. Personally i find it being too ridiculous to pay so many for a saving plan when the person has not even taken up any life insurance!

Guess this is what happen if a person buys a plan off the street without a overview of his/her financial situation. Some consultants will make sure of their ‘charm’ to ask customers to buy big amount of saving policy when they are young, claiming that the more you save the more you will get for retirement. While this is true but it only applies if you have settled for the wealth protection of an individual. Imagine how can one effectively builds up his/her retirement when he knows that the moment he is struck with illness, all the so-called money will be gone! Hence in my personal opinion, an individual should always meet up with his/her financial planner a few times before deciding on a policy and most importantly, get a life insurance or hospitalisation policy before anything else comes along.

Another reason why people will buy a saving plan first is also because some unethical consultants instill the idea that by getting a saving plan, they are comparable to a normal insurance as they also gives some life coverage. While it is true that saving plan comes with insurance coverage but they have to understand that the amount of insurance is too little to be enough for a person’s coverage. An ideal coverage should take up 10 times of the person annual income so anything less thatn that, it will be considered under-insured.

Saving plans are good but it will come in useful only when you have enough money to start preparing for your future! Before that, please get a life policy which can cover you for death, disability, major illness, accident & hospitalisation benefits. Hopefully by reading this story, people out there will be more cautious on getting a saving policy first!

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