Financial Advisers to go from Commisions-based to Fee-based Structures



Following the recent bout of news about unscrupulous agents who are profit driven, looks like the industry is set for big shake-up.

i was just commenting to a friend that honestly this doesn't affect me at all. I don't care HOW i am paid, as LONG as i'm paid. and honestly, product recommendations are supposed to be needs-based and not profit-driven.

unfortunately there ARE agents out there like that and as a warning to everyone, PLEASE do NOT buy into a product which you do not whole-heartedly believe will benefit you.

that being said, there is also a very fine line between an agent being pushy, and an agent who is trying to explain a concept.

i had an argument with my brother the other day, trying to explain the concepts of unit-trust and endowment plans as i felt he needed (and still needs) to start saving money. he got awfully defencive and i felt very hurt that my efforts in explaining were construed as me trying to leverage our relationship to get him to BUY something from me.

when you are with your agent, give him or her a moment to explain the product, and try to keep all questions to the end. i'm sure your agent would be happy to have your feedback whichever way it might go. At the end of the day, being able to recommend something that suits what you want is a satisfaction unlike none other.

both sides must be patient. it will take time to find a product that is a perfect fit. and if you can find an agent who is willing to help you go through all those possibilities, then as much as he/she (obviously) wants to get paid, at least he/she is helping you get something that you yourself wouldn't hesitate to commit to at the same time.

i really hope that the industry does not get too affected by this recent spate of articles. at the end of the day, insurance in any form is good at no matter what method it is being handled at the back end. the whole purpose of insurance is mainly to ensure that there is a protection and cover in place and for that purpose, it shouldn't matter so much as long as you are hapy with the service and product which you've bought.

be protected everyone.
Jessica