One of Singapore’s leading consumer advocates, Tan Kin Lian, has just written an excellent article arguing that regulators should ban ripoff insurance products, namely the worst types of investment-linked, whole life, and endowment policies. The link is here:
Mr. Tan thinks that sales of these dangerous, exploitative insurance products should be illegal, just as sales of dangerous drugs is illegal.
Mr. Tan also argues that conning consumers into paying large hidden commissions is an act of fraud. If the commissions were clearly disclosed, no one would be willing to pay them.
I agree with Mr. Tan and have been urging the Hong Kong police and Independent Commission Against Corruption to take action.
Tan Kin Lian’s Interview on Hong Kong Public Radio
On January 2nd, RTHK Money for Nothing invited Mr. Tan to speak on its program. The link is here:
[Click on the section that says “8:24 am – How to navigate insurance products”.]
Mr. Tan tells RTHK that most consumers should buy low-cost term life insurance and should avoid investment-linked, whole life, and endowment policies. He notes that insurance companies and insurance salespeople have a vested interest in not recommending term life insurance because they can sucker consumers out of far more money when they sell the other types of ripoff products.
Mr. Tan recommends that consumers wishing to invest should buy low cost index funds.
Unfortunately, Mr. Tan’s radio interview was cut short, due to a very limited amount of time remaining on the program. I hope RTHK will invite Mr. Tan to speak on its program once again. Mr. Tan’s message needs to be heard by more Hong Kongers.
Global Insurance Regulators Should Take Mr. Tan’s Advice
I will be forwarding this blog post to regulators in Hong Kong, Singapore, and across Asia. I encourage them to seriously consider Mr. Tan’s proposal to ban scam insurance products.