Dear Mr. Tan,
Is there a role for agents to sell low cost insurance and investment funds?
REPLY
The customer can buy from the following channels:
a) call center
b) internet
c) agent
As the agent earns a low commission, the customer has to contact the agent by telephone or visit the agent's office to complete the transaction.
Read this FAQ:
http://www.tankinlian.com/faq/lower.html
The agent must first be a qualified and honest and competent before he or she can play the role. How to play the role if they are not "fit and proper".To meet the "fit and proper" criteria as stipulated in the FAA, the following will be a good guide.
ReplyDelete#1.They must WANT to help the client
#2.They must KNOW how to help the cleint
#3.They must be OBJECTIVE and must not allow personal interest to interfere with his or her advice.
#4.They must put the CLIENTS' INTEREST above his or hers at all time.
#5.They must conduct due diligence to find the most efficient and effective means to help the cleints.
#6. Thou shall not cheat the poor.
Sincerity and caring are the most dangerous and disastrous display of qualifications often used by insurance agents in their selling work.It is akin to disguised cheating as long the agents cannot meet the above guidelines.
Zhumeng:o)
In the financial literacy survey it uncovers a shocking finding that as many 76% of the people surveyed don't know much about CPF, insurance, and funds and some couldn't even distinguish between saving and current bank account. No wonder insurance agents can continue to rip off these people with high commission products.
ReplyDeleteHonesty isn't the best policy with insurance agents.Their policy is if you don't do others will do .
Regarding the shocking finding of as many as 76% of the people do not know much about CPF, insurance etc, do you not think that these people have a role to play too?
ReplyDeleteI assume they are working since they are CPF a/c holders. Surely they would pay some attention to the news release from CPF board unless they don't know bother much about their CPF monies.
It is not wise to rely totally on somebody (eg an agent or financial adviser) for financial advice or decision. Afterall, it is our money and we should take charge and be responsible.
starlight
It is easy to say that we should take charge of our money, including the CPF. We are untrained and the agent or the adviser we use should give honest and appropriate advice. Whatever decision depend s on the adviser's recommendation. We are in no position to make the decision without the guidance. Why should we pay the adviser when we have to make the choice of the product and the decision. If we know we don't need them.
ReplyDelete