Why you should not buy Insurance blindly?

A. Before You BUY your first/next insurance policy

B. Client-Planner relationship

Let me re-phrase the Heading.  Why you should not buy insurance blindly without first understanding yourself and/or your financial planner. Is he qualified to be your Financial Doctor?

Does your Planner have a good understanding of?

·         your current financial situation through a proper fact find (full disclosure)

·         your current phase in financial planning stages

·         your Budget

·         Cash Flow and Balance Sheet

·         Assets and Liabilities (not an exhaust list)

Do you know?

1.       How competent (by experience) is your Planner

2.       How conversant your Planner in financial planning, hence his/her understanding of his/her tools

3.       If your planner is licensed to recommend possible solutions from other financial institutions

4.       If your planner has a foundation in investment planning

5.       If your planner knows the inflation figures of the country where you domicile

6.       If your planner know your historical rate of return of your investments

7.       If your planner knows what your retirement fund you require (not an exhaust list)

Just some Notes:

Without having the knowledge on (5) and (6), the planner would then have an INCORRECT inflation adjusted rate of return and hence the financial planning report would be Garbage In Garbage Out.

Without having the knowledge on (5) (6) and (7), the whole retirement planning process will have a DISASTROUS outcome!

Without having the knowledge on Cash Flow, (5) (6) and (7), the Planner would not be able to assist you to Navigate through the whole retirement planning process!

If your Planner is shy and does not insist to have a complete understanding of your FULL disclosure, he’s just SELLING you a plan and making a quick buck! Similarly, would you ALLOW a Surgeon who doesn’t have a complete understanding of your medical records!!! to perform a surgery on you!

The main point is: What sort of Client-Planner relationship do you have before embarking on Risk Management and Financial solutions?

You should not just buy the product, but his knowledge and contribution to a properly executed Financial Plan.