COMMENT POSTED IN MY BLOG
I think some kind of legal precedents will help to tidy up the industry. A body to advise on legal suits against roque insurance agents like CASE (Consumer Association) at affordable fee should be set up.
Once policyholders get litigious and know their rights and where to turn to for advise, this will then make insurance agents not to play play. Their recommendations must be able to withstand close scrutiny by third party review.
However customers must be educated on financial awareness. It is not about insurance only but about many areas of their personal finances. They have to know that all their needs are always competing for attention and the right and qualified adviser can help them to sort it out and not an insurance salesman.
Insurance agents are trained to sell, push and peddle products. They don't know about financial planning. Most are looking for get rich quick scheme and insurance selling offers them this opportunity. So unless the industry is cleaned up of these unscrupulous and unethical and cheats insurance salesmen we will continue to risk engaging one. A unified effort is needed.
To start with, only engage advisers with accredited tertiary qualifications like CFP, CFA, CPA, MFP or Master of science in wealth management.
I agree with most of the views.
High net worth people can engage advisers with tertiary qualifications. They can benefit from savings in tax through estate and tax planning.
Ordinary people should be educated about the simple facts of investments and encouraged to buy simple, low cost products available in the market. They do not need to pay high commission to advisers who do not add value to their financial planning.
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09/02 - 09/09
- High distribution cost
- Be fair in your views
- Encourage more people to use public transport
- Insure against real needs
- Life Insurance sales in France
- Over selling by insurance agents
- Keep your living policy
- Career prospects for an actuary
- People are living longer
- Legacy of Goh Choo San
- Investment in a degree or continuing education
- Buying a HDB resale flat
- Commission payable on life insurance product
- Investing CPF savings
- Investing after a market correction
- Commission payable to the agent
- Suitable products
- Reverse mortgage
- Whole life and endowment policies sold by NTUC Inc...
- High cost products
- Suggestion: CPF to provide investment funds
- How to get better advice
- Licencing of financial advisers
- Save energy
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