Much has been said about the benefits of
term insurance.
However, even though I'm a
proponent of term insurance, I find it hard to buy term insurance.
Why?
I'll explain in a moment.
Meanwhile, did you read the recent Sunday Times article that was sort of promoting term insurance?
It's a good article (read it
here if you haven't), BUT the author completely misses the mark when she said "changing mindsets (of customers) is not easy".
Come on. It's the mindset of insurance agents that needs changing!
When I asked about term cover, all my agents seemed uninterested in selling these low cost products. They either talked about the downside of term insurance (no return, temporary protection, blah), or happily ignored my queries and continued marketing their investment-linked products with high
projected returns.
I literally had to force my agent to sell me term insurance. Why is it so hard?
Do you think these agents genuinely care for you when they say term insurance is not as good as life or endowment policies?
Come on. 9.5 out of 10 agents care about their commissions more than anything else. The other 0.5 will learn that naivety leads to nowhere.
That's why term policies are still not common. People who don't do their own research won't get such info from their commission-driven agents, and these agents won't volunteer such info unless forced to.
And Sunday Times writers wonder why consumer mindsets are so fixated...
You don't believe that insurance agents are reluctant to sell term policies? Want proof?
Here's a comment on the Sunday Times article from an ex-insurance agent (
link):
Quote:
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"I once used to be an insurance sale rep.with one of the major American ins. company.WE were told to emphasize mainly on whole life ins. policy to our clients than term ins. policy even though the latter is much cheaper and has a higher coverage.This is because,we could have earned a much higher commission for myself if we sell more of the previous.After a thorough research and analizing the difference Btw. whole-life and term life,I myself and my family members are also sold to the idea of term ins."
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Want more proof? Try asking your own agent about term cover.
If you know where to buy term insurance easily, let me know.
http://www.salary.sg/2008/where-to-buy-term-insurance/