Whole life policy

Hi Mr Tan,
I follow your blog quite regularly. I came across an article addressing whole life or term -- which I know you have addressed many a times on your blog.

http://www.lioninvestor.com/whole-life-or-term/#comments

I am wondering if you find this appropriate to share on your blog?  It offers a differing perspective. 



My view
The article is probably written by an insurance agent. They make a living by selling whole life insurance with a high commission paid upfront to them. They will make these type of arguments to hide the true facts and mislead the public.


A whole life policy is all right, if this priced fairly to the consumer, i.e. no upfront commission and a fair profit margin to the insurance company (but this has to be tightly regulated). Furthermore, the cash value has to be tightly regulated, similar to the asset share method adopted in Malaysia.  


However, our regulatory environment does not protect the consumer for these abuses. So, it is best to avoid the whole life policy.