How do I take to a financial consultant whom I have befriended over the years? - Seedly
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Anonymous

Asked 3w ago

How do I take to a financial consultant whom I have befriended over the years?

How do I approach a financial consultant whom I have become friends with over the years about my policies? I personally feel that I am overspending on certain policies and wish to approach him/her to terminate certain policies. I personally find it difficult to talk to them about this matter.

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Hi there,

The best way to know fairly whether you're overspending is to check in with other people/advisors. In general, a good gauge of budgeting for insurance is 10% of your annual income. Your life should be worth more when you're alive, not just if an unfortunate event strikes.

I think for starters, you probably bought the policies because on the onset, it looked like it met your objectives. So you can ask him openly if you really need these policies and explain that you may not have the budget for that. It's unlikely that if he/she is a friend that they will push aggressively for you to keep it. If there is a certain level of aggression or the advisor fails to convince you objectively otherwise, you may have to do a switch.

That said, You may have to do some research and seek a second opinion, whether online or with other advisors.

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

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Be firm.

Go in with a stand of

1) I need to reduce my insurance premiums by xxx amount per year.

2) I think I would need to cut or terminate these few to balance my budget.

3) what are your thoughts?

If the agent is professional, they will come in with an objective mind knowing that you hit your budget issues.

If the agent tells you to terminate everything else except the ILP / Endowment / Life policies, this person is not one you should trust any further. Its better to make a clean break. That agent is only thinking for himself / herself and their commissions and ratings at the expense of their customers.

If you really don't want to talk to the consultant, why don't you try calling the insurance Co yourself?

Its another alternative. Frankly for most of them, it's a matter of only filling up forms, although they also have to warn you the consequences of terminating the policies.

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There may be a conflict of interests and the review may not turn out the way you expect.

On the other hand, instructing your advisor to just terminate your policies for you would be more efficient. You may allow your advisor to advise you otherwise but you need to know that you are the one making the final (and informed!) choice.

Just know that you are not letting anyone down by terminating or considering to terminate your policies.

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Hi there,

To get some clarity on the situation, business and personal relationships has to be segregated when it time arises.

While you may have come to very cordial terms with your financial consultant, when its time to talk about the things that matter, a level of objectivity should be present at all times.

As with any financial planning, if your thoughts that you are overspending on the abovementioned policies, set up a meeting with your consultant, and address your worries to him. Its within his scope to address your issue, and find solutions to resolve your impasse.

In the worst case scenario, where after speaking to your consultant, and you are still unable to find resolution, you should speak to another consultant to get a 2nd opinion to find solutions to your problem.

I do hope i was able to address you queries!

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Hey,

you really need to be direct to him . Be firm that you want to cancel the plan because of some budget constraints. We have to be selfish and think for ourselves sometimes. all that money can be invested elsewhere or use it for emergency purpose

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Maybe say you wanna do a review of your insurance policies/portfolio and from there start to question if certain policies are really needed

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