Saturday, December 29, 2012  Danger of stopping premium payments
Ms Koh (not her real name) bought three life insurance policies
in 2001. The agent told her that she can stop paying premium
after 10 years and the policy will still carry on. After 10
years, she stopped paying the premiums.  When she enquired about
the status of the policies two years later, she was shocked to
learn that the premiums were actually being advanced as a loan
charged to the policy and is accumulating interest at a high
rate. The customer service staff told her that the policies will
reach zero value after a few years, due to the mounting loans.
She was shocked that her premiums of more than two hundred
thousand dollars could become zero. She cancelled all of her
policies.  Ms. Koh might have been mis-informed by the customer
service staff, but the service quality was bad, slow and
unreliable.  When the agent sell the concept of stopping premium
payment after the policy has acquired an adequate cash value,
the agent did not explai