Is it better to get insurance from a friend with or a stranger with a good plan?

Hi all, I intend to get a WL insurance plan from Aviva. The only thing I am concerned about is that I will be purchasing it from a FA who I do not know.

On the other hand, I have friends who are FAs working in other insurance companies who I would be very willing to trust. The issue here is that their companies do not offer an attractive WL plan as Aviva.

Please advise me if I should choose a stranger with a good plan vs my trusted FA friend with a plan less suitable for me. Thank you.

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Elijah Lee

01 Aug 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Ultimately you must find a person that you can trust with your financial information and personal situation. This kind of information is extremely sensitve, I know of husbands who don't share data about their finances with their wife and vice versa. Since trust takes time to build, you will have to decide if you want to speak to an FA who distributes Aviva and slowly build trust over time, or speak with your friends whom you trust and go with a slightly less attractive whole life plan.

There is no right or wrong answer here, but rather what you find may be more suitable for you. It's not an easy position to be in, you are in a tight place. However, you can consider speaking to the FA whom you are not so familiar with to see if there is a possibility that you can reasonably trust the FA over the long term. If you can see that the person is objective and reasonable, you should be able to work with him/her.

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Samuel Don Oh

31 Jul 2020

Hey there!

I believe that trust is very important. Products change and evolve along time so its highly likely you will probably be getting different products at some point since its highly competitive.

Ultimately, your advisor isnt just a salesman but someone who will help you make better financial decisions, sometimes even outside the scope of insurance. You can get the best product but have the worst FA servicing you (not saying that thats the case all the time, of course, and God forbid that be your case).

If you know with reasonable confidence that this stranger can be trusted to offer objective and honest advice, then go for it. :)

All the best!
Financial planning is an integral part of life. You can reach me here to find out more.

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