Financial product has high penalty

Hi

I am a financial adviser represenative. Being in the industry, I do not need to look too far for malpractice, misselling, misrepresentation. There are many greedy so-called advisors. They are not interested to recommend Enhanced Incomeshield or Myshield to you because the commissions are really pathetic. It's sad to see that this industry has degenerated to the current state.

It's really sickening to see some cheaters who just sell this V plan and earn $1m a year. The V plan is basically a regular premium investment-linked policy. It's an insurance contract. Everything is contractual - you need to follow the insurer's rules and terms. If you violate them, you will be penalised heavily. For instance, if you stop paying premium in the first 18 months, you will lose all your premiums paid.

The advisers tell you that you can exercise premium holiday after 18 months, bonus allocation. If you alter the terms & conditions of the insurance contract, there's a hefty penalty for you.

Do you know how much you pay for this product? For a premium of $3,200/month for 25-year term, the FA firms or banks will straight away receive about $40,000 in commission, then the adviser would get 60 - 80% of the amount. For 10-year term, the comm is about $16,000. the longer the term, the higher the commission. you see, money comes from somewhere. If the commission to the advisor is so good, no prize for guessing who pays for it. it's YOU my friend.

At $3,200/month, the total premium for 25 years is $960,000 my friend! How many people in singapore can afford this kind of premium, and can comfortably say that they are able to 'finish' it.

I had heard of people being sold $20,000 a month. those so-called advisers are beyond help. Eventually they will pay for their evil deed. they must be jailed for their sins.

You may ask why the they could sell so high a premium to their clients? The clients are equally greedy, about the 'bonus' allocation and the 'high' returns. The 'bonus' is something that you can see but cannot touch. Many people thought that they can cash out the gains after 18 months, but they will lose everything if you surrender in the first year.

This plan has been in the market for 2 years. We shall hear more news of people surrendering, especially in the current economic condition. i predict that this V plan and other similar plan from some offshore insurers will be the CDOs for the FA industry. I am eagerly awaiting more complaints or newspaper reports about this con job.

For those who surrendered and suffered big losses, please share your story, expose those who conned you and your hard-earned money. If you continue to remain silence, the misselling will become more rampant. More unsuspected people like the elderly will be sucked into.

Please help educate people by sharing your stories. or you may write to mr tan kin lian at kinlian@gmail.com, or visit his blog www.tankinlian.blogspot.com, or write to reporters like Lorna Tan of the Straits Times or Genevieve Cua of the Business Times, or Mr. Shane Tregillis of MAS' market conduct deputy MD.

I thank you for your contribution in building a better society.