Tan Kin Lian's Blog: Shopping Mall or MRT station

Friday, February 08, 2008

Shopping Mall or MRT station

Dear Mr. Tan,
Is it all right to buy insurance from an agent outside a shopping mall or MRT station? They promote new products and offer some freebies.

REPLY
It depends on whether the products give good value. You should buy a product that meets the following criteria:

1. You understand the product
2. It meets your needs
3. It offers fair terms, compared to similar products in the market.
4. You can get an independent view to evaluate your decision.

When you buy from an sales person in a crowded place, you are not likely to be able to achieve the above criteria. You can take some information from the sales person, but you should not buy on the spot.

Do not be distracted by "freebies". They take your attention away from the key features (e.g. the cost) of the underlying product.

Make sure that you know the key features of similar products in the market, before you buy. This ensures that you get good value. It may take some effort, but it will save you a lot of hidden cost.

You should try the "independent view". If you speak to your spouse or friend about the product that you intend to buy, you will be surprised to learn about the "gap" in your knowledge of the product. This reflects an incomplete understanding. This is a warning sign that you should avoid the product.

Gong Xi Fa Cai.

3 comments:

Anonymous said...: Hi Mr Tan,

Happy New Year. NTUC is promoting its new products, Vivolife and Revosave, at these places. Are they good value? Do you recommend that customers buy these products? They are being pushed hard by the agents.; February 08, 2008 8:58 AM
Anonymous said...: How come you still have gaps in your protection? If you have , are you aware that should something happen to you, yourself or your dependents are in dire needs of funds?
If your agent had done a proper job you shouldn't be bothered with new products because you have enough coverage already.
The problem you are not and you are not alone. You are not because you couldn't afford to buy enough of the whole life products because they were expensive.Do you realise it is very dangerous for you? for not having enough? Do the agents care? If they cared and did a good job for you they won't have the chance to promote new products to you. They cannot make any money from you anymore. You see, this is agents' plan to make sure they can sell something every now and then. Worse, the so called new products claim to be new but actually essentially not. It is still a whole life plan.
You see the conspiracy between the company and its agents to make you
part with your money? Go and get all protection needs covered completely and you will not need any more. Agents won't have the chance to sell you anything. Don't you think it should be this way?
How? buy term and pay very low premium.You can cover $500k, 1 million, etc and if any thing happens to you, your dependents get them. With whole life you hardly get more than $50k. $50k enough to take care of your family?But the commission is huge enough for the agents.You buy insurance because you love your family and make sure you buy enough and that is action matching your love.Don't buy because you want to please your handsome or pretty agent.; February 08, 2008 1:04 PM
Anonymous said...: These are the worse places to look for someone to look after your finances. It is just looking for a
doctor peddling his services at the Waterloo Street open'mall'. You never get a doctor but you get 'witch doctor' or self styled doctor who tells or demonstrates to you his or hers all powerful, cure all products . Likewise, you never get a proper adviser at mrt but salesmen who peddle products of dubious nature and with ambiguous and confusing benefits.They are no different from the snake oil or elixir pills salesmen at this waterloo street open mall.
Professional don't solicit on the street, do they?; February 09, 2008 4:45 PM