Saturday, April 16, 2016

"Support" Your Insurance Agent Friends?

I have mentioned it before, but there is just an overwhelming flood of insurance agents out there in the market today. Not to say that it is not a respectable job, but seriously do we need so many insurance agents per person? I admit that it is an important job function in our society, and there are some great agents out there who are doing a great job, but there are a lot more quacks prescribing one-size-fits-all cures (ILPs) to everybody without understanding their needs or objectives. Really, the quality of the average agent is laughable, until you realize that it's people's money and lives that they are potentially messing around with, then it is just sad.

Recently, a few of my friends have come to me with their woes of having an insurance agent friend.

Their insurance agent friends have been pestering them to sign on plans with them, using the usual methods of guilt and emotional blackmail.

People, I have come to tell you that you should ask them to fuck off.

Almost all insurance agents will present to you their product recommendations. Almost always it is an expensive option. Half the time it will be for an ILP. The other half of the time it will be for whole life insurance. 0% of the time, it will be for a term insurance.

That's all right, their incentives and rewards are structured that way. It's hard to blame them for acting in self interest, because who doesn't? Just ask them to give you the product brochures and the benefits illustration to you so that you can look it over and read. If you don't understand ANYTHING, you should ask them to explain it. If you still don't understand, then you shouldn't sign anything yet until you do. If you sign without knowing anything, you're a fucking moron and you can't be saved.

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Now, here's the extra part that all you lazy buggers out there like to skip: Do your own independent research, especially regarding term insurance.

Go read up what exactly is insurance and it's purpose. (hint: NOT A FUCKING INVESTMENT)

Go read up why insurance IS NOT an investment.

Go read up about the difference between term insurance / whole life insurance and why would people want to choose one insurance over the other. (hint: the only good reason is estate taxes, which are non-existent in Singapore)


Go read up about ILPs and their cons (and pros).

Go read about horror stories about whole life insurance and what people would have done instead.

Go read why term insurance + own "investing" is usually superior to "investment" insurances.


Go search for term insurance plans and find quotes online to compare.

Now with all this information at the tips of your fingers, think about your objectives and personal situation, then understand what insurance you need and why you need it.

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If you are too lazy to do all of that, go buy from your insurance agent. Someone has to do it, and it doesn't seem like it's going to be you.

If you are too scared to insure or invest on your own, go insure yourself and buy "investments" from your insurance agent.

If you really don't understand anything, go talk to your insurance agent and get a good explanation by them of their product. You should be very very aware of the difference between sales talk and product guarantees.

Basically, if you're stupid, lazy, scared or a combination of those, then there is actually no option for you to handle your insurance yourself. In this case, by all means go and "support" your insurance friends. Having really bad and expensive insurance and investment plans is better than having nothing at all. Just make sure your insurance agent friend isn't an idiot. Like I said before, with the massive quantity and low quality of agents being pumped out, odds are high that your agent isn't one of the few good ones. Especially if that agent has never, ever, sold a term life policy before. Run Forest, run. 'Nuff said. *drops mic*

But if you are a smart and rational person, it is likely that you will realize that the purpose of life insurance is negligible if you have no dependents and entirely loses its purpose if you are retired (not income producing). You would have also found out that whole life insurance is an unnecessary way to transfer wealth to your dependents since Singapore does not have estate taxes. You would eventually reach the rational conclusion that not only is term insurance the exact product that you need, but it is also the cheapest insurance product available.

Unfortunately, this conclusion also means that pretty much no agent will want to process these for you, so you need to approach the insurance companies directly and *gasp* fill out your own fucking forms. If you're too lazy to do that, I'm sorry, you don't deserve to have cheap insurance. Please call your agent.

Do not "support" friends that sell you expensive things that you do not need. It is pure fallacy that because something is more expensive or presented in a shiny package by a person in a pressed suit that it is superior in every aspects. All you have to do is find the aspects that are important to you, and pay for what you are looking for.

In a nutshell, buy what you need, don't buy what you don't need. But first, think about if you need it or not.

7 comments:

  1. Can I also add that 'friends' who sell you something that is not in your best interest (but theirs) are not really your friends? I'm just saying...

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  2. Very well summarised and brutally honest info on insurance

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  3. Standby for the flaming by Insurance Agents.

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  4. The given news is very informative and it will help you to understand the market in a convenient way so that you can trade effectively.

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  5. I'm an insurance agent and I totally support your views! Please support me before I go out of business! Check out my profile on www.consultwho.sg!

    ReplyDelete

  6. Thank you for sharing such great information,can you help me in finding out more detail on Term Insurance India

    ReplyDelete

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