Financial literacy and insurance coverage is back in the spotlight again, following a 25-year-old lifestyle influencer and a 73-year-old lady shared about their unfortunate knowledge about their insurer.
Everyone is referring to Francesca Soh‘s bad experience with her insurance agent and company after she publicly shared this on her Facebook Wall yesterday:
As nowadays, her post continues to be shared over 600 times on the Internet, with lots of coming forward to share regarding their own similar experiences too. Clearly, Francesca isn’t the only person who believed different things when she bought her policy.
Some also increased to speak about why this is common and how (black sheep) agents manage this:
There were several who thought Francesca, to be honest, should blame herself rather than the agent:
But more to the point, the teachings to be learnt here were succinctly highlighted : become financially educated yourself so you don’t fall for such schemes.
Francesca Soh is not the just one. I’ve previously shared about how exactly I cancelled my ILP (which I naively purchased from a trusted friend like a fresh graduate) and waved goodbye to the 4-digit premiums I paid over 2 years. It had been an unpleasant and expensive lesson, but it educated me in the significance of financial literacy, and opened my eyes as much as how lots of financial advisors operate.
We often don’t realise that there are plenty of financial advisors who join the industry because they are lured through the commitment of big bucks and fat commissions. Just go for any recruitment talk by an insurer and you’ll understand what I mean (yes, I’ve experienced it myself). Once they join, they are educated to sell.
Many could also not be financially-savvy themselves – simply take a look at this local insurance agent who landed himself in a $110,000 debt.
What about the 73-year-old lady I mentioned at the outset of this post? She’s in even dire states.
Screenshot from AllSingaporeStuff
For the elderly lady, she had undergone treatments which added up to $675,000, but her insurance provider only paid under 20% of her hospital bill. The irony was that they had renewed and upgraded her policy this year (I’m guessing she may have paid more premiums as result?) ; but rather than giving her a reassurance, it wound up landing her indebted.
AllSingaporeStuff reported that she had initially taken the insurance coverage to the court but has since chose to drop the suit as she's no more money to continue fighting. Her current debt including legal fees add up to $684,000.
Many people shared suggestions about Francesca’s post on how one should find a trusted agent who'll hang in there till the end. Unfortunately, that alone is hardly enough either. Just look at this case last year in which a man went for surgery after his agent assured him that “everything was claimable as much as 600K a year”, simply to have a $85,000 hospital bill when his insurance company refused to pay.
So what can we learn from the mistakes of others? Simple – grab yourself financially educated. Ultimately, the very best financial adviser is…none other than yourself. With regards to money and protection, it is best safe than sorry, because desire will truly have your best interests in mind?
I’m not to imply there aren’t good agents – I’m sure there would be the golden gems among the black sheep. The issue is, you will find a lot of black sheep around, and most consumers don’t understand how to distinguish the great from the bad.
If you’ve stuck around long enough with me about this blog, I really hope you’ve learned what not become such a victim.
In my next post, I’ll share much more about some questions you can ask your insurance professional before buying any policy from them. This way, you are able to discern and make an educated decision. Most importantly, be 100% certain of what you’re investing in prior to signing anything!
Read Also: Why You Need To Stop Considering Getting Returns Out of your Insurance Plans
Budget Babe is an ordinary lady striving to attain financial freedom in Singapore prior to the chronilogical age of 45. She writes in order to empower fellow Singaporeans on taking charge of their own lives and finances, and also to eventually liberate in the competitive corporate jungle.
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