According to Suze Orman, “Whole life insurance is…in most cases, one of the biggest ripoffs out there.” Most academics and fee-only advisers agree with her.
If Suze and all the experts are correct, then how does one interpret the fact that Hong Kong insurers collected over $82 billion in whole life premiums in the year 2013 alone?
An $82 Billion Annual Ripoff?
The Rape of Hong Kong has spoken with at least one local insurance broker (a Chinese) who confirms that, yes, Hong Kong’s whole life “investment” market is a colossal ripoff.
So why haven’t regulators done anything? Are they corrupt? Incompetent? Why is no one holding them accountable?
Thousands of people continue to occupy Hong Kong’s streets, demanding real democracy. A key attraction of democracy is the ability to throw out legislators who fail to legislate in the public interest. The Insurance Companies (Amendments) Bill 2014 is a key piece of legislation currently being written, which will provide an opportunity for Hong Kongers to determine which of their legislators deserve to be kicked out.
The local media should be watching closely, and reporting responsibly.
Earlier this week, I posted eight video clips in which Suze Orman explained why cash value life insurance (i.e., life investments) are exploitative and disastrous for consumers. Those clips elicited positive responses from readers of this blog. Those readers will be pleased to know that I found a few more: