Sunday, October 07, 2007

Role for insurance advisers

Several people sent e-mails to me to seek my advice on what they should do with their financial planning.

I am not able to provide this advise to them, as will take a lot of my time (which I am not able to spare).

I usually advise them to read the FAQ in my website, http://www.tankinlian.com/faq/

If they need specific advice, I usually refer them to an insurance adviser. The adviser will recommend the following:

1. Buy term insurance
2. Invest in a low cost, well diversified investment fund

The adviser does earn a modest rate of commission on these products, which gives good value to the customer (compared to high cost products available in the market). As the consumer is already aware about the options (after reading my FAQ), the adviser is not likely to push any high cost product.

I hope that this approach will be helpful.

3 comments:

Anonymous said...

The FAs CAN give you the financial planning check up and recoomend you the best solutuins at the lowest cost, becuase of the choice of solution from a wide rnage of products. But not tied agents. With tied agents you inevitably end with a load of par. wholelife and endowment with high distribution cost.And with current promotion from Income you may end up with a revosave. I won't be surprised thAT THEY WOULD TELL THAT REVOSAVE CAN MEET ALL YOUR NEEDS.It can be absurd as this with tied agents.
Check out with fee based FAs

Anonymous said...

Buying from agents there is ALWAYS conflict of interest. They sell to you what company manufactures, good or bad, eg like revosave, prucash and
all the rubbish cashback products which cannot address your needs.
You can be sure the products sell to you carry high commission.

Anonymous said...

Rules of engaging an adviser.
1. never engage an insurance agent
who is a salesman.
2. he or she must advise
3. he or she must be honest and
competent (FAA requirement)
4. he or she must have minimum
professional qualifications at
tertiary level.
5. he or she must not be related to
you.
6. he or she must be prepared to be
questioned.

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