Whole Life Insurance
Term Life Insurance
Asked on 30 Oct 2018
I think ultimately, the main concern is that people don't want to buy what they don't need, they're afraid they won't understand and get swindled, or it'll be a waste of money.
It's very important to know what's important in life insurance and what risks you're planning to cover for.
Clients may not be experts in products, but they can't go wrong with knowing what insurance does and how it protects them.
Regarding independent advisors like myself, yes we do give a more comprehensive comparison between companies and have additional services that tied advisors may not have, but most insurance companies work the same way, it's a very competitive industry where they're all trying to one up the other.
And there'll only be best for now, not best for always. Things change so its not horribly detrimental if your advisor is tied to one insurer.
There are many options for you to choose from. Tied Agency, Independent Financial Consultant, Online Brokeage firm, banks etc.
Firstly I feel and i believe many would agree is that you must know what you are searching for, as your qn didnt specify if its Life insurance, Endownment etc. so be clear about the objective of that particular product that you are looking for and stick to it. Majority of a specific product offered by different insurance companies i.e Life Insurance would encompass similar features and benefits so from there you can compare.
"Just like buying a car ; any brand of cars can fetch you from point A to Point B, but there is just some features of a certain brand that one brand is slightly better, and the other is lacking. "
Second, which i think is equally as important is that your advisor must be someone that you are comfortable with, and must be very reliable and responsible to you. There are those that does one time sales and you never see him/her again. So be it that you advisor is from tied or independent the "feeling comfortable, and reliable part" must also be your consideration.
Product comparisons I believe companies that has a range of different insurer's product would be good for your consideration because then it makes your job easier instead of getting comfortable and confident with each advisor from each insurance company now you only have to know one.
The main concerns are what to cover and how much coverage ( death, TPD, CI and ECI as well as hospitalisation). My humble opinion is that it is all right to hear from tied agents and independent financial advisor. At the end of the day, you need to do your own research a and know exactly what you want and not be influenced or coerced into buying a policy.