Asked on 26 Jun 2020
Always wondered how independent FAs work.
IFAs will be able to distribute products from a wide range of companies, depending on the distribution arrangement that their companies have with the insurers. Only GE and Prudential products cannot be distributed by IFAs.
By engaging an IFA, you'll be able to get information on all these products from one source without having to separately look for tied agents from each and every insurer and then trying to do the comparison on premiums and features yourself.
However, ensure that you are comfortable with sharing your information with the IFA and working with him/her.
As far as I know, IFA can sell products from most insurance companies except some. Such as Prudential or Great Eastern.
However, its also up to the IFA (there are different IFA companies as well) if they want to market the specific product.
My experience with several IFAs is that they usually have similar recommendation for certain types of products. As its either the most comprehensive or cheapest product across the market.
This article may help you: https://dollarsandsense.sg/independent-financial-adviser-vs-financial-adviser-vs-tied-agent-different/
Overall, just because an agent is able to represent more companies (and thus more plans) doesn't mean that he is well-versed in each plan to give you objective advice.
In like manner, just because an agent is tied to a specific insurer doesn't mean that he is biased and isn't able to act in your best interest.
In other words, the agent's character, knowledge, and experience plays a pivotal part in giving you responsible financial advice.
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