My kids and I went to the mall the other day, when suddenly this guy came to me and gave me this free insurance coupon and a 50% discount from college tuition fee. First he asked if I have credit card and I said yes then he took us to their office and when we got there several people assisted us. There was this lady who asked me if I can come with her inside to demonstrate the coupon I got. I complied and seated right in front of the banner where it was displayed. I filled-up a sheet with some questions like what I want to have in the future, my financial status, basic information like my name and age. Then she explained to me that the coupon I got is basically a free insurance from the savings. The product is savings—she repeatedly said it was all about the savings. It was not pure insurance though they give free insurance if you get the savings.
Well, here it goes, you would save up some money worth 15,715 pesos good for the whole year and you would give out the same amount for 10 years. And you will have a 100,000 pesos face amount and also you will get 10% of the face amount every year after you finished paying the premium. At first, it sounded a good offer. But when I started asking questions, since I have some knowledge about insurance and about some products that bank is offering to depositors, it came to my senses that this could be some sort of a scam hidden behind the name of Cocolife. I do know that Cocolife is associated with UCPB. I don’t have any negative feedback about UCPB since I had an account with them way back in the 2000, they did great in handling the accounts and the depositors.
My concerns about this Cocolife are:
I would pay using my credit card. They made it more convenient. You can use your credit card to pay outright and then after one year, you have a choice to give the premium either monthly or annually through the bank. How about that? I must pay the initial premium 1-time with my card then choices afterwards.
You can only have the offer just for that day. I asked if I can come back the next day because I have to get my husband’s decision on this matter. She said the offer is only good for 1 day. How can you decide on investing for a short period of time? It only showed that they are pressuring you to take a bite on their offer.
I asked what would I get after I pay the premium she said that the Policy Certificate will be mailed to my home address. What? A policy on snail mail? That can’t be! It is a classified documents and should be handed to the owner at the moment payment was made. She explained to me that the main office will have to check if the credit card payment was successful before they release the papers. Paying thru credit card is made easy both on the merchant and the consumer, and it made merchants to charge real time. And also, since I used to be a PhilAm agent when my client paid 50% of the premium the office will prepare the papers and when fully-paid I will personally give the policy to my client. It will never be mailed, agents should hand it to the client.
She said it was like saving up. You saved 15,715 pesos for ten years and would get 100,000 pesos as insurance or face amount and also get 10,000 pesos yearly after ten years. If it is savings, you should have 157,150 pesos in ten years, right? She told me that it would still depend on the age and health issues of the client. And it is still a savings– not an insurance. Reluctantly, I answered back if it’s savings then there is no need for check-ups or something like that. Banks won’t do medical check-ups if you want to open an account.
Lastly, when I asked for some brochures or leaflets regarding the offer they don’t have any. How can a company survive without any of this? Unless, of course as I think of it a scam. They don’t want to pull some money out for these but instead get some in.
For me, I conclude that it is a scam. How about you?