One thing I've learnt to appreciate after coming onto a platform distributing multiple insurers' products is that no one insurer can have a superior suite of products. However, as someone who used to work in a bank and with a single insurer, I've also accepted that consumers aren't really bothered if the plans are the most competitive as long as they are comfortable with the service provider and that they have some form of coverage.
Given that I've now seen the merits of how different insurers have their own niche in different aspects of financial planning, it's leaves me to question if people are aware that they can better optimize the use of their funds? Granted that we are all lazy and frankly if financial planning isn't your passion, product research and meeting advisers can feel as painful as my mom asking me to wash my toilet. Yet, we are talking about hard-earned money and honestly for most of us money seems finite and without proper allocation, it'll always seem like it's not enough now or in the future.
Here are 3 important points you should note when doing financial planning with your own trusted adviser:
1. No one insurer has the best plans in every aspect of financial planning
If you choose to get all your plans from a single insurer you have to be prepared for this. Some plans from insurer A might cost more than insurer B and might even have lesser coverage. Some plans from insurer A might have a lower projected return than insurer B but have a higher guaranteed amount at maturity. Insurer C might cover a longer list of illnesses compared to insurer D. You get the drift.
2. Someone distributing multiple insurers is different from someone representing one insurer
The advantage of having someone distributing multiple insurers' products is obvious because you got more options to choose from. Having said that, this isn't to say that someone representing a single insurer isn't good. Most of my plans in my earlier days were bought from someone I trust who represents a single insurer and I did so because I felt she's good at her job and I was willing to pay a premium (by giving her the business) to have her as my consultant. My point in bringing out this distinction is to remind you that if your adviser distributes multiple insurers' products and you find yourself buying plans as though he/she is from a single insurer, it's time to ask why.
3. The free gift is usually a puny fraction to the premiums you pay in a year.
I mention this because I always get amused when a cheap rice cooker can make a person part with tens of thousands. Free gifts are supposed to be by the ways, it shouldn't be the incentive to buy. It is always strange when a person agrees to save for example $200/mth for a plan and suddenly decides to save $500/mth instead because of a pair of concert tickets. In my opinion, free gifts should be a call to action if you already have intention to get the plan but simply need a reason to do it now. It shouldn't be a reason to increase your budget because it's a long term commitment and frankly if the higher budget was your original intention then settling for a lower premium without the free gift would have been short-changing yourself to begin with.
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Disclaimer: The content created are based on my personal opinions and may not be representative to everyone or any organisation. If you have any doubts or queries pertaining to insurance or investment, please seek professional advice from a trusted adviser in an official setting. You may also reach out to me if you do not have a present adviser using the message box under 'Let's Talk'.
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