An agent play a useful role under the following circumstances:
* where you are the principal
* where you pay the agent an agreed commission to carry out a specified duty for you
* where you pay the agent out of your profit.
When you buy an insurance product from an agent who is paid by the insurance company, you are placed at a disadvantage as a customer:
* you are not familiar with the product
* you have to depend on the advise of the agent (who is pay by the insurance company)
* the agent may offer you a product with a high commission, which is added to your premium.
It is better for you to choose a product, such as term or accident insurance, where you can make a comparison between the prices charged by different insurance companies.
In this case, you want a broker who is able to shop on your behalf to get the best rate. It is better for you to pay an agreed fee to the broker, so that he can get the best "net rate" for you.
This advice applies to other products, where the price and structure is not transparent to the customer.
You should be especially careful when the agent is highly trained to sell you a hyped up product, such as those sold through multi-level marketing.
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04/29 - 05/06
- Investment linked plan under NTUC Income
- Are my policies worth to keep?
- No need for Medishield insurance
- Spend less on insurance; invest the rest
- Life Insurance for College Students
- Talk to LTA
- Different methods of calculating interest
- Employment for seniors
- I strongly agree
- Discrimination in the workplace
- Save for a child's education
- Liability insurance
- Moral Hazard and Adverse Selection
- Payment to accident victims
- Insure my co-payment
- Call me on my mobile
- Save $600 a month?
- Structured Investment Products
- Car Navigation System
- Sad aspect of market liberalisation
- Small workshops like the tender system
- An alternative to Downtown Lines
- Better to have a standard taxi fare
- Whole life policies from NTUC Income gives better ...
- Two views of the stock market
- Poor return on whole life policies
- Term to 99 years
- What has Science got to offer?
- Difference between wishful and positive thinking
- Power of marketing
- Motor claim by third party
- Water for Life
- Surrender value of Living policy
- Financial Tips for the Young and for Seniors
- Avoid lock-in investment products
- Restructuring of public transport
- Senior Employment Guidance
- My personal asset allocation
- Refinance your housing loan
- Capital guaranteed products give a poor return
- Some structured products are good?
- Discount on motor insurance
- Singapore Dance Theatre - Impressions
- A salute to the earlier generations!
- Making the incredible credible
- Renting your car
- How to control spam mail
- Feeder service in Hong Kong
- Role of an agent
- Pyramid scheme
- Asset allocation in a nutshell
- Ranking of Products
- Investment Tips, April 2007
- Term insurance up to age 65
- More moderate return in the future
- Shall I continue Eldershield?
- Capital guaranteed product
- Increase the investment in a life annuity
- Simplify the feedback form
- Encashing my life insurance policies
- Yield of 3.41%
- Term Insurance
- Senior Housing
- Natural disasters
- Pay a fixed fee to a broker
- What is a broker?
- Insurance course at a local university
- Invest in large, well diversified fund
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