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Anonymous

Edited 15d ago

How do you know if your Insurance Agent have the best interest?

seems like agents always use "the sky is falling" or worse case scenarios to justify and convince you to buy a policy.

e.g "think about what happens if you get a terminal illiness , you are going to be a financial burden to your family"

or "if you die , what will your dependence live on?"

are these real concerns or agents just trying to scare you into buying a policy?

after all, if you are a insurance policy , won't you want to sell the policy with the highest commision ?

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    What are your thoughts?

    The answer is never. The commission structure creates a moral hazard. There is an inherent conflict of interest and all things equal the agent will pick the policy that gives the agent a better pay off.

    Do your own research. The best person to look out for yourself is yourself. Even if there is a knowledge gap, speak to more people and sense check what your agent is telling you.

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      Hello. This is indeed a concern for everyone that buys insurance through an agent.

      Those things they say, are valid concerns out there. Don't get me wrong, I do not mean that you should be concerned, but definitely those are common concerns. It is their job to point out those issues to you. However it is up to you on how you want to interprete the advise.

      Regarding conflict of interest, I would say that there is conflict of interest going on in everywhere. Think of hair salons. When the staff upsells a treatment package, it is because they will benefit from it. It is up to the consumer to then decide whats best for him. I do no tbelieve that there is an occupation that is free from conflict of interests. But certainly, insurance is a huge financial commitment. This is why we should be much more careful when dealing with agents. Nothing wrong with buying from agents, but please ask them questions and make sure all your doubts are cleared before purchasing.

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        For me, was when I did my own research on what insurance I need. Then I act blur and went to meet ag...

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