Cathay agents still brazenly sell life insurance 'disguised' as savings books

While Cathay Life claims to have strict management, many people still openly sell disguised life insurance under the name of 'savings books', 'savings funds'... posing great risks to customers.

After Tuoi Tre reported, Cathay Life affirmed its transparency and will strengthen internal management. However, the situation of selling life insurance "disguised" as savings books still occurs - Illustration: AI

Many life insurance agents are entering a “sprint”, rushing to sell contracts before some products are discontinued under new regulations from July 1, 2025. In this context, many people take advantage of this situation to advertise ambiguously, even downplaying the role of other types of insurance.

"Impersonating" savings books to sell life insurance

“Instead of paying social insurance for 30-35 years to receive money, I can deposit it in Cathay's savings fund, only need to participate for 15 years, and after 20 years I will receive both principal and interest,” an agent named MH advertised Cathay Life products.

This person not only urged customers to quickly sign the contract before July 1, but also attached an illustration showing the payment of 9 million VND/year, after 20 years, receiving 49.5 million VND (in which the last 5 years do not need to pay fees but still get interest). According to the advertisement, this is a "smart savings book", so own it immediately.

The ambiguous advertising of life insurance has existed for many years. Recently, Tuoi Tre newspaper reported that many Cathay Life agents introduced insurance packages such as “Thinh An Phu Quy Dai Cat” (A11) and “Thinh An Tich Luy Cat Tuong” (A15) under the name of savings books, savings products… and advertised them as helping customers easily carry out big plans in the future such as sending their children to university, starting a business, buying a house, buying a car, doing charity or preparing for retirement.

After the article published by Tuoi Tre newspaper, some people defended it, saying that the consultant was not wrong in calling the insurance product a savings book. Perhaps the only mistake was the lack of quotation marks around the word savings book (?). At the same time, they recommended “be smart consumers, be thoughtful customers so that you are not affected by articles like this” (!).

Cathay Life's life insurance product advertisement image, but labeled as "savings book" - Photo: FB

Cathay Life says it will strengthen internal management, agents still advertise ambiguously

Responding to Tuoi Tre newspaper, Cathay Life Vietnam said the company has issued regulations and procedures for censoring product advertising materials. The company also applies measures to manage, monitor and handle violations. The entire business department has been asked to review the use of product advertising materials (if any) on personal social networking platforms.

Regarding the question of whether the product is insurance or a savings book, the company affirmed that this is a mixed insurance product, designed to provide comprehensive financial protection for customers to cope with risks in life, while supporting customers to achieve long-term financial goals.

This product has insurance benefits and guaranteed contract value, which is secure and safe.

Cathay Life also said: "Of course, the product still needs to go through the appraisal process. In case the customer cancels the contract in the middle of the insurance period, the company will pay the refund value according to the agreement in the contract, not the entire amount paid plus interest."

For all insurance contracts, when issued and delivered to customers, the company requires the direct manager to accompany the sales staff to explain clearly.

After the customer receives the contract, the company will make a confirmation call by phone to ensure that the customer has clearly understood the contract content. The customer has the right to unconditionally cancel the contract within 21 days from the date of receipt of the contract.

“As a business that always strictly complies with legal regulations, Cathay Life is committed to providing honest, transparent and accurate product information to customers. In addition, the company will continue to strengthen and improve its communication, internal management and sales processes, in order to bring customers the best experience and the most accurate information,” the business said.

According to Tuoi Tre newspaper, after nearly a month of the company's response, the situation of agents advertising ambiguously, calling the company's life insurance "savings books", "savings products"... is still happening widely, especially through personal accounts on social networks.

Risks lurk when misunderstood

Understanding the developments of the incident, Mr. Tran Nguyen Dan - Director of the Academy of Insurance and Financial Risk Management - said that the products of Cathay Life mentioned by Tuoi Tre newspaper belong to the mixed life insurance group, not savings books.

A savings book is a banking product with a fixed interest rate and no deductions. Meanwhile, mixed insurance includes accumulation and protection, with deductions, and the return value is often lower than savings with many obligations.

Calling insurance a “savings book” carries the risk of misleading customers. In fact, if considered seriously, it can be considered an act of deception. In case the agent gives wrong advice, the insurance company must also be responsible to the customer.

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Source: https://tuoitre.vn/dai-ly-cathay-van-ngang-nhien-ban-bao-hiem-nhan-tho-tra-hinh-so-tiet-kiem-20250630152624411.htm