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Beware of ILP policy that gives an initial bonus
08 Apr 2017 (1261 views)

Five years ago, many policyholders who invested in the Zurich Vista plan were unhappy with the policy. They were attracted by the high initial bonus, but were not aware of the high surrender charges when the policy was terminated. They had invested a large sum of money are were locked into a policy that gave them a poor return over the long run.

You can read some of their in this blog posting. 
http://tankinlian.blogspot.sg/2012/07/zurich-vista-plan.html

Recently, a policyholder sought my help on the AXA Pulsar policy.  It also contained an initial bonus similar to the Vista policy. When I read the policy contract, I found that the Pulsar policy is similar to the Vista policy. I also found the policy wordings to be quite complicated and confusing. If it could confuse an insurance veteran like me, how can the ordinary policyholder understand the contract?

The policyholder had paid about $17,000 over 18 months and was unhappy that AXA had changed the policy terms to require a minimum monthly premium of $500 (an increase of $250 previously). The policy contract had a provision that allowed AXA to change the minimum and maximum premium at their discretion. 

The policyholder did not want such a high commitment. He found that if he terminates the policy, he would lose nearly all of the $17,000 that he had contributed.  It represented his hard earned saving for that period. What did AXA do to justify their taking away so much of the saving?




 

 



Beware of ILP policy that gives an initial bonus
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Five years ago, many policyholders who invested in the Zurich Vista plan were unhappy with the policy. They were attracted by the high initial bonus, but were not aware of the high surrender charges when the policy was terminated. They had invested a large sum of money are were locked into a policy that gave them a poor return over the long run.

You can read some of their in this blog posting. 
http://tankinlian.blogspot.sg/2012/07/zurich-vista-plan.html

Recently, a policyholder sought my help on the AXA Pulsar policy.  It also contained an initial bonus similar to the Vista policy. When I read the policy contract, I found that the Pulsar policy is similar to the Vista policy. I also found the policy wordings to be quite complicated and confusing. If it could confuse an insurance veteran like me, how can the ordinary policyholder understand the contract?

The policyholder had paid about $17,000 over 18 months and was unhappy that AXA had changed the policy terms to require a minimum monthly premium of $500 (an increase of $250 previously). The policy contract had a provision that allowed AXA to change the minimum and maximum premium at their discretion. 

The policyholder did not want such a high commitment. He found that if he terminates the policy, he would lose nearly all of the $17,000 that he had contributed.  It represented his hard earned saving for that period. What did AXA do to justify their taking away so much of the saving?