Expect proper advice from an independent financial adviser

A consumer asked my advice about a disability insurance product offered by an independent financial adviser. The adviser recommended one product and did not give the benefit illustration.

I asked the consumer to get the following explanation from the adviser:

a) What is the coverage under the product
b) What is the premium rate charged by several insurers offering the same product?
c) Which product does the adviser recommend, and why?
d) How much commission does the adviser get from selling the product?
e) Provide the benefit illustration

The adviser owes a duty to give proper advice to the consumer. The consumer should not expect someone else to explain the product, when it is the adviser that is earning the commission from selling the product.

If the adviser is not able to give clear explanation about the product, the consumer should not buy the product.

If the consumer wants confirmation, the consumer can approach FISCA (www.fisca.sg) to get the assistance of a knowledgeable volunteer to go through the benefit illustration and verify the points against the explanation given by the adviser to the consumer. An administration fee of $50 is payable for this assistance (which does not amount to financial advice).

Tan Kin Lian