For people who find it hard to save money, we’re encouraged to start a savings plan in order to collect money for our future needs. However, much research is needed if you plan to invest in such plans as a large sum of money goes into it! You want to make sure that you get the right company and one that you can trust!
Source: Health Plan Markets
Early this year, a man who goes by the name Tyler Jwy took to Facebook to share his father’s encounter with Prudential Singapore.
According to his post, Tyler’s father had bought a 20-year savings plan with Prudential and was promised to get SGD42,000 (RM128,000) at the end of the term, which was in March 2017. However, the company only sent his father a cheque totaling up to slightly more than SGD20,000 (RM61,000).
The family visited the Prudential office to lodge a complaint and to inquire as to why the company isn’t giving the full sum as promised in the contract. But the company allegedly dismissed Tyler’s father with a convenient excuse,
“Our company isn’t earning much so that’s the sum you’ll have.”
While some people will just accept it as it is, Tyler and his father aren’t going to let it slip as he wrote,
“Is this ethically right? What’s the point for anyone to save with Prudential if you’re going to make a loss in the end after 20 years? That money could’ve been many times more if my dad invested in other financial instruments and inflation.”
As his parents are just hawkers, he asked the public if it’s possible to sue them, noting that the savings plan is an endowment plan.
It is understood that the man bought the savings plan through an agent who is no longer working for Prudential and that there has been no withdrawal and payment was made regularly since 1994!
Not expecting that he’d get this much response, Tyler sent copies of the documentation to his friends who are from different insurance agencies to see if they could help in any aspect. At the same time, they’re also waiting for a representative from Prudential to contact them.
On April 8, Tyler was able to understand more about insurances through the help of the public and was able to educate his father on that. But his father’s biggest question is,
“Why did the policy schedule indicate that he would be receiving $42k based on the contract he has in the 90s even though the assured sum is 20k? There has been no signs of the word “projected” anywhere in the policy schedule which is pretty misleading imo.”
When contacted by a representative from Prudential a few days later, she explained to Tyler’s father about the policy as a whole, but there was no explanation regarding the letter which states the SGD42,000 (RM128,000).
He told the rep that he had requested to see the manager when he was at the Prudential office but was denied and that customer service allegedly told them to proceed with their complaint.
When asked if the first letter had the company logo or an envelope accompanying it to prove their claims, he did the necessary and emailed them. Tyler pointed out,
“The first letter which accompanied the policy was sent in this gold coloured envelope during the year of purchase.”
On April 12, three Prudential representatives visited the family home to explain the policy once again and to understand the entire situation. As they have no records of the documentation regarding the policy, they took pictures of it and brought it back for investigation.
What’s frustrating is that the representatives kept emphasizing that the agent who sold the plan no longer works for the company. Regardless of whether it was done by an agent or the company, the policy came from Prudential. That means, the company should be accountable for it, after all, the letter and policy had the Prudential logo on it.
Fortunately, the representatives have also agreed that the company has the responsibility regarding this issue too. Though they said that they’ll be investigating the matter, Tyler has closed his post and will no longer update us. Therefore, we wouldn’t know if the case has been solved.
Before you say anything, bare in mind that Tyler’s father has been honest throughout the whole investigation and that there is nothing to hide.
What’s your take on this? Share your thoughts with us in the comment section below!