Cowboy Caleb the liberal arts, grown-up stuff & random mischief

Old People Like My Mom Very Easy To Cheat By Insurance Arseholes

Over the weekend, I tricked my mother into going out for lunch, so that I could bring her to a private hospital for a quick scan of her stomach. Unfortunately, I forgot that the surgeons in Malaysia usually schedule their surgeries for Saturday, so I was unable to secure an appointment.

While we were having lunch, my mother ‘accidentally’ revealed to me that she had bought a ’savings cum annuity’ plan last year.

Here is how it works:

1. Every year, for 10 years, you pay 6000 bucks.
2. Every 2 years, for the rest of your life, you get $2000-4000 every 2 years.

The person who sold her the plan was one of her former students.

What he forgot to tell her was that

1. If at any point of time you decide to stop, you lose half your money. So in the 2nd year, you only get back 6000 (and lose 6000). So this investment is a guranteed way to lose 50% of your money if for some reason you can’t pay (eg. you retire, fall ill, have a major calamity etc).
2. My mom is already in her 50’s. She’s got at best, another 20 years to live. So let’s say she gets 4000 a year, 20 * 4000 = 80,000. That’s a mere 20k ROI given a best case scenario.

I’ve told her in my best very angry face that she needs to cancel the plan now and lose only 3k. And I’m going to hunt down her former student turned insurance trickster and tear him a new arsehole.

Is the new arsehole covered under insurance?

Hello, i curious and read your blog entry about the insurance thingy.

I don’t really get it about the ROI thing. Didn’t she only get 2000 per 2 years? and the savings scheme only for 10 years? and from all i know. Saving schemes always come with insurance, or at least she can top up. So let say if she had an accident or in the event she can not pay the policy, the insurance will kick in?

Can you share more about this? because even my self thinking to buy the very same saving scheme for my mother. And she is 60 next years :)

I am planning to buy her revosave plan from (NTUSh**t Income)
I really hope we both talking about a different kind of saving plan >_

kennysia > the new arsehole will be covered by a band-aid plaster

Layna > this type of plan only works if (1) you buy it for yourself and you’re relatively young (below 25 years) or (2) you buy it for your young children. The idea is that the continued payout should go on for as long as possible.

hey I am an insurance manager myself so I am sorry that this type of agents get to ur mother.

really paiseh for my industry because of pple like tat!

hope ur mum will be better off!

cherub > I only trust insurance agents that drive 7-series. They’re the ones who must be doing something right? Right?

What’s the sum insured? Surrender value in 20 years time? Annuity pay out for next 20 years is only $40K in best case scenario by the way ($4k every 2 years).

Theoretically speaking if your mom has already transferred her risk for major illnesses/calamity out and planned for retirement/emergency fund, there should not be a reason she cannot continue payment.

oh crap! i only drive Lancer. nb. time to get a new car.
(seriously, i am looking for a new car, but i scare if i drive expensive one like 7series, then hor…pple say i earn so much from they buying policies from me)

SIGH. it is a tough job for us.

however tats no excuses for pple who sell wrong products to the wrong market! :D
can u free-look the policy? (theres 14days freelook from RECEIPT of policy documents in singapore)

He he ….My sister in law was dope into the same scheme like this. Her bf found out and was furious too. I laugh reading this bcos the one who sold her this scheme was her hair stylist master. They don even understand insurance policy at all…

Dude, I stay near an insurance agency where the agents drive CLS and 7-series. But probably live in flats. All those are for show. They get most of the money from people who buy those RM5 million policies, and from recruiting agents. Agents who cheat money from people like your mama! When they harassed enough of their old friends to buy policies, then they get promoted and are forced to buy flashy cars so can recruit more bloodsuckers, I mean, agents. You do know insurance companies were the fist MLMs?

Give me an insurance agent who owns a modest car any day and does not have to be so desperate to make their monthly payments on the Benzo they can ill-afford, that they will misrepresent the policies they sell.

i drive a small lancer. lol
no spoiler, no body kit, no rims.

haha.