Recently a friend of my just has his first child. I suggested to him that I proposed an education plan. But the reaction I got from him was astonishing. He said that he only support one insurer because his friends are agents of that insurers. Huh? Here are the reasons why this is a silly reason:

1. No insurer can claim to have the best of all classes of products. So by limiting himself of all his insurance needs from just one insurer, I am 100% sure that most of his plans are inferior. Inferior plans means expensive, more “fine prints” or combination of both.
2. Many insurance plans these days come with reviewable premium. Thus, it is unwise to put all eggs into one basket as a hike in premium will be a very expensive problem. Diversify all eggs to different basket.
3. As far as education plan is concerned, only one insurer provides the best risk-reward return. He has just turned away the best plan without even doing due-diligent.
4. I know behind the reason is because he wanted to support his friends. However, commission is either 3 or 6 years only. Can he support his friends beyond these years? It is better to support in giving cash directly to his friends then to buy an insurance policy.
5. Finally, it is irresponsible to buy just as to “support my friend.” One should only make a commitment based on suitability. I know people buy just to do their friends a favor rather then suitability. I know of a separate case which an agent sold a whole life policy without critical illness to a young friend. Why would a young person at age 23 need death insurance without any dependents? Moreover importantly – why critical illness was not recommended when EVERYBODY is subjected to this risk? I understand that budget was not an issue but the agent said that critical illness was useless. Thus a friend bought a policy from another friend based on friendship rather then suitability. Thus the friendship resulted in MIS-SELLING and potentially is going to destroy “this friend”  
6. Nevertheless, I know of many clients who had some form of insurance because their friends prospected them and persuaded them to buy. Although the policies were inferior, at least they had some form of protection already.

 However, I feel that everybody should take care of their finances PROACTIVELY rather then to wait for insurance agents to prospect them. The responsibility for good financial planning ultimately lies on the individuals – not other people, financial advisers, private-bankers or insurance agents. Personally I wished I know about financial planning early. I wasted 10 years of my financial active years doing nothing. I can do some "rectification" now to some extend but never as good if I had done proper planning 10 years ago. I don't blame my insurance agents in the past who prospected me. In fact, I want to thank my first agent for selling me a whole life policy for without his persuasion I would never have bought such a policy. That policy has a critical illness GUARANTEED which these days no companies can provide except for Aviva but it is quite dear. My second adviser also did a good job my selling me a comprehensive H&S. But if it wasn't for my stubborn headed self, I would have bought his other recommendations which I now regret not doing so. I cannot do so now due to insurability reason. That is why I am so passionate that people must get their financial planning right and not just buy a "suitable" plan, but the BEST plan. I suffer the consequences of not doing the right thing, I must never allow my clients to choose the wrong decision.