Whole Life Insurance
Term Life Insurance
Asked by Anonymous
Asked on 30 Jul 2019
Currently sorting out the insurance policies I have and am wondering if I should proceed with buying them all from the same agency or pick from a couple. Also, what is the difference between insurance agencies and independent financial agencies?
Top Contributor (Nov)
You should look first for the advisor that you can trust and work with. It's like how we have a trusted family doctor whom we would return to time and again. My TCM doctor has been looking after me for over 20 years, for example (went back recently for a sprain, and I wouldn't go to anyone else because I trust him). Ultimately we want to get the most value for our plans, but the quality of the advice and the ability of the advisor to understand you and your needs is paramount and cannot be understated.
Insurance agencies are typically able to provide solutions which their parent company carries, whereas independent financial advisors generally distribute multiple insurers' products and are also able to assist in areas such as wealth management and advisory. As an example, I am able to manage my client's stock and unit trust portfolios, beyond helping clients get quotes from multiple insurers for their protection needs, or helping them plan their retirement strategies.
Top Contributor (Nov)
I will surely be biased to say choose an Independent Financial Advisor. But it's our job to be as least biased as possible. Plus IFAs can do a lot more than just insurance.
Portfolio management and mortgage loan advisory are just some additional services most IFAs provide.
However, to be fair to my tied agent colleagues, although they may have fewer options, all insurance companies sell the same thing.
And I'd much rather you choose your doctor instead of your hospital. Ultimately, the advisor you trust and work well with, will be able to help you execute a financial plan. Planning is all moot if you don't follow through. :)
They have mentioned enough, so i would offer another opinion.
(1) pros of having 1 insurer. You just need to submit 1 death certificate to the insurer to inform them of claims.
(1) pros of having different insurer. Competitive premiums from different insurer. Spread out Risk of insurance for Policy Protection Scheme by SDIC (surrender value as at 14 August 2019 is insured at $100,000, while sum assured is at $500,000).
The cons are what they cannot provide you.