Sunday, January 06, 2008

People will buy insurance

For decades, insurance professionals have held the view that "insurance has to be sold". People will not buy insurance on their own. The solution was to train insurance agents and pay them high commission to sell the insurance products.

Times have changed. People will buy insurance for the following reasons:

1. They want to be protected financially against the risk of death or disability
2. They want to save and earn a good return for the future
3. They will buy an insurance product that gives good value to them.
4. They need to find someone that they can trust.

In my blog and website, I will educate people about the good value products, including the following:

1. Term insurance
2. Personal accident insurance
3. Low cost, diversified investment funds

Tan Kin Lian


Anonymous said...

Mr. Tan, I share your view that insurance must be purchased and not sold.First it saves time and cost. They can buy from an outfit that is manned by qualified financial planners with the right qualification. They can also be referred by independent financial planners who charge a fee.In this case the plan or "prescription" is signed by a practitioner and the "dispenser" or execution only planner of the products will be absolved of responsibility of inappropriate advice. The cost can be drastically reduced. This will eliminate the greedy and dishonest insurance salesmen and women who came into the business because of money and other motives, leaving advisers with passion for the profession and interest of the clients at heart.
I will spread the news and encourage poeple to visit your blog to learn ,not just the products but
also to learn to be able to pick out the good advisers from the sea of unscrupulous insurance salesmen.

Anonymous said...

Hi Mr Tan,

as a firm believer of the "Buy Term and Invest the Rest" approach, I am constantly looking for good value insurance products and searching for low costs funds which are likely to provide better returns over regular whole life policies.

Although I'm not an insurance agent, I visit your site regularly to update myself on the products available in the market and to learn from your expertise in this area. I also direct friends who wishes to learn more about insurance and financial planning to your website.

Thanks for generously sharing the information!

Anonymous said...

Aren't there term and accident insurances already sold by almost all insurance companies?

Almost every bank/online brokerage has low cost unit trusts?

Are you re-inventing the wheel? What is different about the term and accident insurance that you are offering? Is it going to be the cheapest in the market? I was thinking of buying some term but I think I can wait for you to come up with one and see if it is cheaper.

Khiat Han Hwee Adrian said...

I agree with what you say but I have further comments.

1) A lot of people buy insurance but inadequately. They don't know what is meant by adequate.
2) They want to be protected financially, but they procrastinate till the point when certain unfortunate events happen.
3) They want to save and earn a good returns but they do not know how to manage expectation and understanding the risk-returns curve.
4) They will buy an insurance product with good value but they don't know what is considered as good value
5) They need to find someone who they can trust. But how can they trust when they view Financial Planners as Insurance salesman?

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