Shopping Mall or MRT station

Dear Mr. Tan,
Is it all right to buy insurance from an agent outside a shopping mall or MRT station? They promote new products and offer some freebies.

REPLY
It depends on whether the products give good value. You should buy a product that meets the following criteria:

1. You understand the product
2. It meets your needs
3. It offers fair terms, compared to similar products in the market.
4. You can get an independent view to evaluate your decision.

When you buy from an sales person in a crowded place, you are not likely to be able to achieve the above criteria. You can take some information from the sales person, but you should not buy on the spot.

Do not be distracted by "freebies". They take your attention away from the key features (e.g. the cost) of the underlying product.

Make sure that you know the key features of similar products in the market, before you buy. This ensures that you get good value. It may take some effort, but it will save you a lot of hidden cost.

You should try the "independent view". If you speak to your spouse or friend about the product that you intend to buy, you will be surprised to learn about the "gap" in your knowledge of the product. This reflects an incomplete understanding. This is a warning sign that you should avoid the product.

Gong Xi Fa Cai.