Understand your life insurance needs

Many people have to consider life insurance when they are approached by an agent (or someone who is called an adviser or consultant). The agent will tell them about the risk of premature death or critical illness or the need to save for the future, and recommend a life insurance policy as the solution.

The agent is well trained to tell convincing stories to the consumer, but these stories are often exaggerated. The life insurance policy is usually not in the interest of the consumer, i.e. the consumer can find better alternative solutions. The agent is likely to recommend the life policy that pays a fat commission (usually several thousand dollars) to the agent, and is taken away from the consumer.

I strongly advice consumers to be educated about life insurance and personal financial planning so that you can make a better decision for your future. You can read my book on financial planning (www.tankinlian.com/ishop) or attend the educational talks conducted by FISCA (www.fisca.sg).

You can also get answers to specific questions in the FAQs posted in my website, www.tankinlian.com/ask.aspx. Some of these FAQs can be found by searching for the keywords below:

Half truths
Right prioirty
Low cost
How to say "No"

My message is specially directed to young people who are starting work for the first time, as you will be the target of several life insurance agent within a few months. Some of them are your classmates or friends. You need to know how to ask the right questions and how to say "no" to them. You have to learn this skill, as it could save several thousand dollars from being wasted.

My message is also for parents of these young people. Do pass this message to your children. It will mean a lot for their future.

Tan Kin Lian