Lost trust in insurance companies and bank

Dear Mr Tan,
When I started work, I was introduced to an insurance agent. The insurance agent told me that I should buy a life insurance – one that can protect me and my family financially if anything should happen to me and if nothing happens, it served as a forced saving with good returns.

I was concerned about the non-guarantee return portion and was assured that in the history of the company; they have NEVER reduced the non-guarantee portion. It was divided into guaranteed and non-guaranteed portion to meet MAS guideline. I asked several insurance companies to quote me the same type of policy with the same coverage and bought one with the highest monetary return.

Throughout the years that followed, I started accumulating insurance policies for my husband, my children and myself from different insurance companies. At one time, I was paying $1,000 per month for my whole family’s insurance policies. I told myself that I am saving for my future, my children education, my retirement.

In 2003, I started receiving numerous letters from my insurance companies announcing that they would adjust the non-guaranteed returns. Some insurance companies even adjust their returns (downwards) every 6 months. The amount I thought I could accumulate for my retirement was substantially reduced by 30% to 40%. I had NEVER once default my monthly payment but the insurance companies did not fulfill what was promised to me at the point of sales. I was disheartened and felt cheated.

I told myself to hold on until the ‘break-even’ point. But within 3 years, the break-even point for most if not all my policies were pushed from the 12th year to the 15th year then to the 18th year.

I decided to terminate ALL my insurance policies for my family to cut my losses. By doing so, I lost more than 60% of what I had paid for those policies. I took back $20,000 and lost more than $30,000 for those policies that have not reach the 'break-even' point.

The insurance companies ask my reason for termination. When I told them about the reduced return, they told me that insurance was for protection and not for returns (saving). I had to remind them that returns (saving) was my consideration for taking the policies.

Later, I was persuaded into purchasing Mini Bond by the relationship manager of a major bank, who claimed that it was a high return and safe product. I bought the product. When Lehman Brothers collapse in 2008, I lost all the money. I was once again dubbed and conned, now by the bank!

I have learned my lesson. I do not trust anyone - insurance company or bank. I have lost my family and my life saving for being too trustful. I am so traumatised by all these that I now keep all my cash at home; as I will never know which bank will go bankrupt next. I just hope, from the start someone had told me not to buy insurance policies with saving element which was mentioned in Mr. Tan’s book.