Hi, what are the pros and cons of buying insurance from an independent agent vs direct agent? I am considering getting a life insurance with Early CI rider and both agents recommend NTUC Star Assure. Any thoughts?

Hi Xy,

A direct agent would only be able to provide plans from the insurer he/she represents. So if your direct agent is from NTUC and recommends Star Assure, that's understandable.

However, the IFA is able to recommend plans from more insurers, and thus by extension, should know the pros and cons of each plan and have a strong reason to justify Star Assure over any of the other insurers (which have been mentioned already and I won't repeat them).

Ultimately, a limited pay whole life CI plan is there to provide a payout in event of critical illness, so regardless of the company, the plan will fulfill what it was intended to do. However, you will of course want to get the most cost effective coverage along with the features that wil appeal to you. Consider asking your IFA to provide more details on other insurers and explain why Star Assure would still be the better choice (all things being equal, i.e. sum assured, type of coverage (late stage CI only, or a mixture of both early and late), payment term)

Tied agent will sell their company product... I have seen alot of tied agents finding fault with other insurance companies products and say their product is the best.
independent advisor can sell various companies products... However some are geared towards selling products that they are paid more on comm...
Find FA that can click with you... And honesty and sincerity is KEY.
If you are getting CI... There are different model of CI... Severe CI, early CI, multipay CI...
You can reach out to me if u would like to know more.
#planwithcolin

Generally, the plans that you are getting will be the same. Accordingly, the difference will be the efficency of the after-sales service from the company, as well as on the long-term working relationship with your agent.

Above all, you will want to work with someone whom you can entrust your future onto, and to help you when the needs arise, e.g. quick assess to the company for checks and after-sales, e.g. claims. In addition, working with a reputable company will certainly prove its worth.

Besides, you may wish to study deeper on the definition for claim for early critical illness. In essence, not all plans provide payout the same way. By far, all my clients prefer to have critical illness coverage with a broader definition for payout, as compared to one with complicated terms and conditions. This is because all my clients prefer to focus on recovery, rather than to fight the technical jargons.

Hence, you may wish to research along the same path as well.

I share quality content on estate planning and financial planning here.

Hi Xy,

The main difference is that an independent agent usually has tie-ins with at least 4 insurers and are able to advise you on products from other insurers that might actually meet your needs better due to the wider range of options.

In regards to direct agent, do you mean tied agency? If you do, these agents can only sell products from which ever agency they are tied to, like in my case, I'm only able to advise you on Prudential products as Prudential agents are tied agency.