Insurers 18 too young to be able to sign up for policies
My son is a 19-year-old full-time national serviceman (NSF). He was contacted by an insurance agent, and later told me he had agreed to invest in a policy.

He would pay $30,000 in monthly or yearly instalments over 25 years, and would get $45,000 at the end of that period.

The agent assured him that his savings from the salary earned during national service would be enough to pay for the premiums during his four years of university.

The first instalment was deducted from his bank account by the end of the day.

Being only 19 with no knowledge of the financial world and having a very trusting nature, my son did not ask some obvious questions that any mature adult would have asked.

For example, what if he becomes unable to pay the instalments?

This could very well be the situation if he goes on to do post-graduate studies or is unable to find a job after graduating from university.

I asked the insurance company why its agents were getting young people to sign up for policies, especially when they are not in full-time employment.

The reply was that anyone 18 years and older is eligible to sign up for the policies.

The legal age limit for signing up for such policies should be revised, at least for those who are not in full-time employment.

Anita Sugam Kale

Source: https://www.straitstimes.com/opinion/forum/forum-18-too-young-to-be-able-to-sign-up-for-policies

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