from my review of hundreds of individual/families' wealth protection portfolios in my 14 years in the financial industry, one significant finding has always been the fact that consumers' may not be the wiser when it comes to their choice of choosing the right premium payment mode.
what do i mean?
by and large, most consumers have opted to pay their insurance premiums on a monthly mode basis.
is this wrong?
yes, wrong in the sense that insurers usually penalise the policyowners by imposing a higher premium payable if the premium payable is not paid on an annual mode basis.
and opting to pay on a monthly mode basis can cost the policyowner up to a hefty 5% more as compared to paying premiums on an annual mode basis.
my comments:
does it surprise me that something so basic like the lack of knowledge on the consumers' part in being penalised (with paying higher premiums) by opting to pay insurance premiums on a monthly mode basis?
certainly not!
one recent case was a fellow chruch member who benefited from my sharing of this nugget of information. i assisted him in effecting the change of premium mode to an annual mode basis for 6 whole life policies and the immediate impact was substantial savings amounting to hundreds of dollars for his 5 family members, including his spouse.
mind u, there was no benefit for me in carrying out this value-add service for him and his family but i believe one of the intangible aspects of doing 'national service' should turn out to be positive for me and promiseland independent long into the future.
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