Switching between guaranteed and investment linked returns

Over the past years, insurance agents have earned high commissions by getting their policyholders to switch from guaranteed to investment-linked returns and back again.

When the stock market is hot, they tell their customers to move to investment-linked returns by enticing them with high projected values (which were not guaranteed). When the stock market fell, they tell their customers to move back to guaranteed returns.

Each time that the customer took the advice to make a switch, the insurance agents earn a high commission on the new policy that was sold. The customers were not aware that they were exploited and given poor financial advice. They were "taken for a ride", time and again.

An ethical agent will advice the customer to stick to the existing policies. They can invest additional savings in the new policy, rather than move the entire savings from an existing policy to a new policy.

If you have been misled by an agent using this technique in the past, you can send an email to kinlian@gmail.com

Tan Kin Lian