Tan Kin Lian's Blog: Dealing with an adviser

Monday, December 08, 2008

Dealing with an adviser - what to look out for

The adviser is required to disclose to you about the charges, when you buy a life insurance policy. Read the answer to Q8 in this FAQ. Read the rest of this FAQ:

http://www.moneysense.gov.sg/publications/guides_publications/Consumer_Portal_FAAGuide.html

Q8: What information is a FA representative required to disclose to me when recommending an investment product?

A: When recommending a unit trust or life insurance policy, a FA representative is required to disclose to you the key features of the product including the following:

1. Nature and aim of the product Whether the product is a life insurance policy or a unit trust, and whether it is meant for protection, savings or investment.
2. Benefits of the productInformation on the amount and timing for payment of benefits and whether the benefits are guaranteed or non-guaranteed.
3. Risks of the productDetails of the risk factors that may result in the benefits payable being less than the illustrated values (for a life insurance policy), and the risks stated in the prospectus or profile statement (for a unit trust).
4. Details of the product providerThe business address and permitted activities of the product provider, and the relationship between the product provider and the FA.
5. Fees and charges to be borne by youDetails of the amount and nature of fees and charges to be paid by you, and the frequency of payment.

5 comments:

Unknown said...: what happens if theres a tiny end-of-the-booklet section called "Other Terms and Conditions apply" ??

things are NEVER simple, thats why the whole gang's here; December 08, 2008 3:01 PM
Anonymous said...: FA rep from Hong Leong Finance downplayed my concern on the risks. They just argued on stringent MAS approval after 1997 and so everything should be fine.; December 08, 2008 5:01 PM
Anonymous said...: Product pushing is faster to make money. It does away with time consuming need analysis.
It is also a fast track to qualify for MDRT, COT and TOT.
What conscience? What ethics? What cleint's interest? What is needs?
I am in insurance business to make quick money to retire. My retirement first then the cleints' provided I am not greedy any more otherwise cleints can look for another agent as good as me.There are many like you fools and naive morons out there. No worry about my livelihood or shortage of fools as long no police..
Who to blame?
There are suckers born every second.
The laws exist to 'pai swee'.MAS already said they don't want over regulation.Vetting the product is over regulation. Policing the insurance agents, adviser or RMs is
over regulation. Lassier Faire or lesser fairness or lackadaisical is allowing the free market forces to self regulate. Caveat Emptor is key to the success. Bring your grandson or your Harvard graduate son along if you are buying a whole life insurance, an ILP or restructured products to read the benefit illustration cover to cover. Die is your business.
How to make it into a financial hub if you have a lot of rules? Foreign investors may not feel safe if there is too much rule.; December 08, 2008 6:37 PM
Unknown said...: Published rules are for those who BELIEVE Published rules work ha!; December 08, 2008 8:05 PM
Anonymous said...: How to deal with insurance agents?

1.The first sign is if the agent starts telling you how good his or her whole life product is, you better run as fast as you can. This is the product pusher that you shouldn't trust. He or she is not going to care whether your needs are met or not as long his or hers is.
2.If the agent tells that it is required by law to fill up some form details and appears to conduct something that looks like need analysis but recommends you a whole life with sum assured far short of the analysis you can also run as fast as you can. Or if he or she tells you can buy the short fall some other time and if you hear this you can shoot off like a bullet and never turn back.
3.If the agent asks if you have budget for the insurance and starts to generate a quotation for you based on the budget you give him or her you can write him or her off. This is another product pusher that appears only to meet your budget.
4. If the agent meets you with a few quotations with different amount of sum assured, this is yet another product pusher. This agent is offering you different models.You have to find out YOURSELF which suits you. You are the adviser yourself.
5.If the meeting place is your home and the agent brings some food or gift for your children the agents intends to induce or to make you 'paisay' so that you will buy out of obligation and not for financial reason.
6.If the an agent tells how sincere or caring she is you can be sure that your financial life will be disastrous..
7.If a woman agent sits too near to be comfortable you can be sure the outcome is not due to financial needs that you buy.
8.If an agent takes out a newspaper cutting to highlight the threat of illness he or she is indeed threatening you to buy and if not they will curse you.
9.If the agent tells the company is having a gift promotion he or she is trying to test your greed and your reason to buy is greed and not financial needs.
10.If the agent shows you the MDRT or COT or TOT logo on his or her name card quickly clutch your money purse or credit and run because they are thieves. The logos are actually MDRThief, COThief or TOThief. These thieves sell only whole life , endowment or regular ILPs which earn them very high commission to earn these logos.
11. Never ,never buy from your brother or sister or your relatives or from your friends because you are the insurance agent's guinea pigs and he or she is practicing on you and you WILL NEVER GET THE RIGHT ADVICE AND PRODUCT.
12.Treat all insurance as suspects and ask them for thier experience, their credentials and whether they are honest. honest? hear what they have to say.
The above are some tips and signs to look out for if you are dealing with insurance agents.Remember they are chameleon. They can camouflage . They are graduates from some drama schools.; December 08, 2008 10:20 PM