tag:blogger.com,1999:blog-1377738835782322104.post1957024255379133984..comments2023-08-18T01:29:19.662-07:00Comments on Singapore Blue Chips: Stretch your dollar series: Commission RebatesSgbluechiphttp://www.blogger.com/profile/18070778039656838451noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1377738835782322104.post-28156916325878266292008-07-26T02:12:00.000-07:002008-07-26T02:12:00.000-07:00Some clarifications on the above comment:An agent ...Some clarifications on the above comment:<BR/><BR/>An agent who earns $8000, $80,000 or $800 a month does not indicate whether he is a greedy, hardworking or smart agent. My agent used to be a hardworking man working 16 hours per day. He gave rebates because he believed he will be in the industry for at least the next 10 years and word of mouth has an exponential effect on his sales income. He has resigned now and is teaching piano for a living instead. I bought the WL policy from him 7 years ago.<BR/><BR/>A H&S policy's premium will not pay the agent a decent meal, why will I want Adrian to give me a rebate? Again, how much the agent earns monthly is not a factor of how much I ask for a rebate. Rather simply, I am just a consumer looking to buy a product at a lower price. If I need to buy a product for $50 and I know $25 is the cost price, logically I will want to bargain it to as low as $25, right?<BR/><BR/>Of course I know what I want in the first place, so the agent does not waste precious time explaining things or doing financial planning for me.<BR/><BR/>I hope it clears anonymous's doubts!<BR/><BR/>I do apologise again if this post made insurance agents upset. This is just my perspective on stretching my dollars and my honest experience and opinion.<BR/><BR/>Also, I should have indicated the primary school friend agent had resigned. $8000/mth 7 years ago was a good pay cheque. Adjusting for inflation, it can be almost $10,000 monthly in today's dollars. For a young poly graduate at that time, it is awesome right?Sgbluechiphttps://www.blogger.com/profile/18070778039656838451noreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-834470016141598832008-07-25T22:17:00.000-07:002008-07-25T22:17:00.000-07:00Yes, you will get nothing if you terminate early. ...Yes, you will get nothing if you terminate early. But some people still do it if they figure they have better use for their money in future than to continue paying their WL and ILP premiums. If the agent isn't already your friend and know nothing about your character, why would he/she give you any rebate and take the risk?<BR/><BR/>You were lamenting on how no agent wanted to meet up with you to sell a cheap term policy. And that most were interested in pushing high comm WL and ILP. The successful agent example in this blog post is about the greedy agent instead of the not so well off one who is willing to sell you a term policy only? Why? Isn't the $8000/mth agent the type of product pushing agent that every DIY investor condemns, and a DIY investor like youself still encourage people to give him/her business?<BR/><BR/>If someone like Adrian (http://akhiat.blogspot.com/) is going to meet you to sell you a cheap term and h&s, I bet you're not going to take it up anyway since he's not doing as well as the 8000/mth example you quoted and can't give a rebate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-46276449518421267432008-07-25T20:05:00.000-07:002008-07-25T20:05:00.000-07:00I am speaking from a client perspective. The agent...I am speaking from a client perspective. The agent have to take the risk to give rebates and again face the risk of client giving up the policy. However, from my understanding, the first 2 years of WL policy does not have any cash value. Which means I will get nothing if I terminate the policy within the first 2 years due to high distribution costs. I do not think the insurance company will pro-rate and rebate any premiums if I were to terminate it after 14 days. Do correct me if I am wrong.<BR/><BR/>It is illegal for the agent to do that for CPF funds. However for cash, I do not think the client is subjected to legal liabilities. The agent might lose his license if the matter is uncovered though. Again, the agent takes the risk here.Sgbluechiphttps://www.blogger.com/profile/18070778039656838451noreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-71597378058589159962008-07-25T10:01:00.000-07:002008-07-25T10:01:00.000-07:00sgbluechip: i don't understand what you're saying....sgbluechip: <BR/><BR/>i don't understand what you're saying. My point is that the adviser has to be very certain that the client won't give up the policy anytime soon, before the adviser can give any rebate. <BR/><BR/>just to add on, such an arrangement is illegal with most CPF transactions, though there is a legal way of getting a small rebate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-54601846564670021552008-07-25T09:50:00.000-07:002008-07-25T09:50:00.000-07:00Hi private investor, how often does your agent con...Hi private investor, how often does your agent contact you after he earns the commission? Well, mostly when he wants to introduce you another product, he will call you, is that right?<BR/><BR/>How many agents switch companies, become IFAs, resign in a span of 10-18 years? Your policy will be passed around like a football because there is no more comission paid to the advisor taking over it.<BR/><BR/>If the advisor does not service you when you make a claim, you have plenty of avenues to seek help and get the claim done.<BR/><BR/>The agent can run, the company can't.Sgbluechiphttps://www.blogger.com/profile/18070778039656838451noreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-60428834420466092952008-07-25T09:45:00.000-07:002008-07-25T09:45:00.000-07:00Hi anoymous, I am assuming the premium is paid yea...Hi anoymous, I am assuming the premium is paid yearly. It makes better sense to pay premiums annually as it is cheaper this way, enhancing a lot more savings in the long run.Sgbluechiphttps://www.blogger.com/profile/18070778039656838451noreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-26145561976873369242008-07-25T03:47:00.000-07:002008-07-25T03:47:00.000-07:00If we squeeze the agent, will the agent wants to s...If we squeeze the agent, will the agent wants to service us if we need to make a claim?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-22222740055537187142008-07-24T06:50:00.000-07:002008-07-24T06:50:00.000-07:00There is a small problem. Let's say the client sig...There is a small problem. Let's say the client signs up an ILP policy, asks for a comm rebate and gets it. Within 3 mths, he surrenders policy. Net loss to adviser is the comm rebate that he gave, because the insurer will get back the full commission from the adviser...Anonymousnoreply@blogger.com