Twisting of Life Insurance Policies

Twisting occurs when an insurance agent ask the consumer to give up an existing life insurance policy to buy a new policy by stating that the new policy has some useful features. This is usually misleading and bad for the customer. It has been a rampant practice in many countries, including Singapore, for many years. By switching insurance, the consumer has to incur the upfront cost (of two years premium) again. This is how insurance agents continue to make a big income at the expense of the consumers.

Many consumers are not aware that they are being skimmed. Those who are, felt embarrassed and prefer to overlook it, rather than bring the agent to account. This is how the bad practice has continued for so long.

If consumers allow this type of practice to continue, they will have very poor return on their hard earned savings that they put into life insurance. They will not get a fair return. What a pity!

Tan Kin Lian