Posted by lotsofmoney > 2013-10-22 09:45 | Report Abuse

All the Insurance business at the moment operates like a huge Ponzi scheme. It could be better regulated like banks or cooperatives.

Posted by andychucky28 > 2013-10-22 09:46 | Report Abuse

Not at all. Insurance should be purely on protection.

Posted by lotsofmoney > 2013-10-22 09:58 | Report Abuse

Do not be naive. Nobody would be in any unprofitable business unless it is a pure charity. Do any body think of the fat commission, salaries and the profit of every insurance company. Their main source of income is the poor insurers. That is why no Insurance Company would insured a 100 yrs old.

Posted by haikeyila > 2013-10-22 10:05 | Report Abuse

it's even more unbelievable when some insurance agents claim that by buying insurance you're doing a good deed in contributing cash to people who might need it while protecting yourself at the same time. Strangely i dont see these agents at hospitals or old folks home trying to insure people.

Posted by Abudance > 2013-10-22 10:07 | Report Abuse

Last date of entry is 59 or some 65 years old. When u r 50 and want to take inductance...they load yr premium.
If you do simple calculation, usually the returns is 2x what u paid in for term savings. If you are discipline, put in FD consistently and let it compound interest. U earn far more.
Insurance is for protection.

Posted by andychucky28 > 2013-10-22 10:08 | Report Abuse

haikeyila, i do see insurance agent at hospital helping their client. but anyway, do not buy insurance for their investment plan. it is totally b*llshit.

Posted by Avocado_C > 2013-10-22 16:20 | Report Abuse

I think there is a misperception where investor is trying to compare the "return" on insurance plan with unit trust funds and invest in share market. Insurance is bought for "protection" not "return".

Based on my calculation, most insurance savings plan actually gives a guaranteed return that is 1-2% above the current FD rate if you add in the timevalue, i.e. use the IRR concept. However, I noticed some agents sell the plans by stressing the "return" calculated based on lump sum payment upon maturity over the initial capital without factoring in the years to maturity. This is quite misleading, but most people on the street don't understand.

I don't think the Insurance companies are operating like a Ponzi scheme if you understand the industry well. Insurance is a highly regulated industry just like banks and under the supervision of BNM.

Posted by Hustle > 2013-10-22 16:23 | Report Abuse

They insure you because you age are still worth to invest,if you already become old machine and half dead.I'm sure they will not willing to insure a total lost investment hehe.