Getting a ‘Gam-Cheng’ policy
It is very common to find people getting insurance policies without knowing what they have actually bought. 1 of the most frequently quoted reason is that the policy was bought from a relative or a friend, often as a form of support. I call such policies as ‘Gam-Cheng’ policies. ‘Gam-Cheng’ is the hokkien term for relationship.
‘Gam-Cheng’ policies need not be totally bad if it really suits the policy holder and meet their needs. But more often than not, an inferior plan or 1 that it not suitable is sold. Under the situation whereby the policy holder is not exposed to other plans from other companies, getting that inferior but suitable ‘Gam-Cheng’ policy may be a ‘lesser evil’ compared to not getting any protection at all. However, policy holder must know that NOT all plans are similar as what your adviser might tell you. I’ve highlighted some diffrences in the article The Devil’s In The Details.
When faced with an superior alternative choice, people still often go for the inferior ‘Gam-Cheng’ policy. The most likely reason is that they felt obligated to support their friend or relative. In the course of doing so, the ‘Gam-Cheng’ policy holder puts him or herself in a disadvantageous position by possiblity paying more or getting less coverage or returns.
In getting that ‘Gam-Cheng’ policy, you actually thought about the welfare of the ‘Gam-Cheng’ adviser. But has this adviser thought for you? If the adviser is truely a friend or relative, wouldn’t he or she wants the best for you? Wouldn’t he or she preferred you to get a superior product instead of a lousy 1? When selling you the policy, is it really in your best interest or theirs?
Getting a policy is often for the benefit of yourself and your immediate love ones. Before you start thinking for your ‘Gam-Cheng’ adviser, think for yourself and your family 1st. Make sure you are not worse off getting a ‘Gam-Cheng’ policy instead of from another adviser.
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