just the other day, one of the general inquiry which was directed to me from my office was on the subject of whether to sell an endowment policy. this person saw an ad in the free daily tabloid, today and came across a company which buys endowment policies and was attracted to this proclamation which says:
"Policies which are in force, lapsed, discontinued paying premiums or with outstanding loans have been sold to us for hundreds or thousands above the surrender value."
for ease of reference, u can check out the website at:
http://www.repsholdings.com.sg/selling_policy.html
my comments:
generally, any financial advisor worth his or her salt should never advise his/her propect/client to surrender an existing insurance policy. this is because any early or pre-mature termination will be detrimental to the policyowner.
and the other no-no is to take up a policy loan where the interest payable can be as high as 8% per annum.
but having made these statements, and just like any medical doctor who must see each patient individually, the financial advisor must address each and every case on the same individual basis.
for the record, i made an inquiry and was told the company is not registered with the monetary authority of singapore.
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