Wednesday, January 28, 2009

Protecting Tomorrow...

According to a research done by Life Insurance Association of Singapore in 2006. The average working Singaporean needs roughly $480,000 of Insurance Cover but has just a quarter of that or $118,000. From this survey, 3 hard facts were identified.

1) Majority of Singaporeans who own life insurance policies do not have sufficient coverage to protect their families and loved ones.
2) About a third of Singaporeans underestimate the amount of protection that is sufficient and more than a thir had no idea who much is considered adequate.
3) While many understand that insurance is important, they do not see see it as an urgent necessity.

What are the common excuses Singaporeans have for not getting an insurance plan?
1) Not free. Very busy... Call me next time... (The next time will never comes)
2) I know when I need it... Don't need to worry... (Its probably too late when you need it)
3) Call you when I'm interested... (I don't think insurance will ever interest them)
4) I have enough policies... (Don't know how they guage if they have enough)
5) I have an agent already... (Don't know if the agent really do a proper Financial Plan for him)
6) I can invest and save better... (Probably punting the money in the stock market)
7) I don't have money. Budget very tight... (Some people have hundred of thousands in their bank and can tell you "I don't have money to buy insurance")

Through my experience, few people will wake up and remind themselves that they need to do a financial review. Its not like a doctor or dentist where people will visit when they are physically sick. How many people think they are financially sick? Its probably at the back of their mind, but they need someone to push them a little bit in order that they action.


Anonymous said...

Adrain, insurance is about protecting 'today'(today's needs) and not distant tomorrow. Please get it right. You can see how problematic it is to protect today , tomorrow would be worse.
What if it happens today is more important than what if it happens when your are 80 years old. Who cares? First thing first.

Anonymous said...

hi adrian,

10 bucks say a few more wannabe mentors will appear to spread their morals and ethics teachings.

Anonymous said...

hey adrain,
do an indepeth article on Portfolio Bond and available solutions in singapore today.


Anonymous said...

To anonymous,

Financial Planning is about:

1)Preserving yesterday's cumulated wealth (wealth preservation);
2)Ensure today's income continues(positive cashflow) and
3) Securing tomorrow's income (protection planning)

It is not possible to do things tomorrow because that has not happen. It is only possible to do things today because today is the timeframe which we are awake and live. Thus, financial planning has to be done today. If we wait for tomorrow, that tomorrow becomes today again. There is no such thing as financial planning to be done tomorrow.

Khiat Han Hwee Adrian said...

How we are protected tomorrow are decided by the things we do today. Of course my intention is not to tell people not to protect for today.

As for an indepth study on Portfolio Bond, I afraid I may not have the expertise on it. Just a rough idea but not that good to write an article yet.

Anonymous said...

That is right many insurance agents tell grand children stories so that they can sell you whole life. You know whole life short changes you, ie. you end up having not enough coverage. This is cunning of insurance agents so that they can sell you more whole life to provide a stream of future income for them.
How do agents qualify for mdrt every year? This is the strategy. Make sure customers are not fully insured so that they can sell more whole life to sustain their income.
You know the insurance agents' parting reminder to the cleints after a sale? I will come for review when you have a change of circumstances. Actually it is "Please remember to call me when you have more money(change of circumstance) to buy more whole life to plug the gap I created purposely." "I pray for you that you live long long life till my next review."
And in the insurance agents' mind, it is " please don't die. My income will stop. Not only that your spouse might sue me for conflict of interest and inappropriate recommendation.".

Anonymous said...

Adrian, that's your failing.
Not wanting to improve yourself.
Someone asked you about portfolio bond and you rejected him.

He might be a potential client but because of your inability to go and do more research and learn more about the product, you reject outright the request.

This prospect will then move on to find someone who is able to explain to him the concept.

Anonymous said...

how do you know whether you'll be obese in 10 yrs time? Just look at what you're eating today.

how do you know whether you'll be a happy person in 10 yrs time? Just look at the comment(s) you posted today.


Anonymous said...

Protecting the insurance agents' tomorrow pocket is more like it.
I have come across ntuc agents telling you no need to buy all you need but can buy another time when they have the budget.Isn't this unethical?

Anonymous said...

I'm quite taken aback by comment (January 30, 2009 1:43 PM). Such pessimism ought to be altered.. Some insurance agents have genuine intent on helping clients. If he/she does his/her job well, there will definitely be a shortfall (ie: coverage for death, TPD, CI, accident, health, savings, wealth, retirement, etc.). It is not possible for an average Joe to purchase all whole life/endowment/investment policies at one go given his current financial circumstance. Thus, a RESPONSIBLE & GENUINE insurance agent who has done an IN-DEPTH financial analysis on his clients would re-visit their clients when their circumstance/needs change. Pls dont look at things in a negative light. Just because some agents are like that, doesn't mean there are no genuinely caring agents.

Anonymous said...

February 14, 2009 11:14 PM,
I don' think you know financial planning. Financial planning is NOT about meeting all the goals at one go. This would be ideal but personal resources don't allow.
Genuine intent is NOT enough, in fact it is dangerous. Honesty and competence are the underpinnings of the good and responsible financial planning. They both MUST be present and without one it is disastrous.
Most insurance agents don't have both. About 5% have only
Financial planning is not a function of Caring , insincerity , or genuineness of intent,.Mimimum requirement of the FAA for fit and proper adviser is HONESTY AND COMPETENCE and there are no other criteria as you have mentioned.
I know the insurance agents revisit their clients when they have (a) new products to sell (b) when there is a promotion (c) when their cleints have more money and NOT review because of change of circumstances. Genuinine financial planners are NOT driven by new products or promotion. These don't drive up their activities.

From 1.43PM