fML Case Study: Aligning Expectations With The Right Financial Advice

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[3 min read]

Sometimes, getting professional financial advice can be tough – it requires the right expertise, the right experience, and most importantly the right adviser him/herself. Without any of the three, things may go awry when financial goals are not achieved, which does happen.

In this article, fundMyLife follows fML user James* who asked a burning question on our site on an AIA plan. Our AI engine connected his question with one of our fML advisers, Roshan Belani of AIA. After connecting with Roshan on fundMyLife, James and Roshan met up for an appointment. Roshan first spent some time acquainted with James on their first meeting, and they bonded over investing – something that Roshan is an expert of.

Unmet expectations in plan bought

Upon conversing, Roshan discovered that James’ initial goal was to accrue a set amount of savings for a particular financial goal. However, the plan which he was sold by another adviser turned out to be an ILP, and was unsuitable for two reasons:

  1. The plan protected him more than he needed
  2. The premiums he paid in the first two years went to protection first, instead of investments

The plan was not going to deliver what he wanted – savings – in the long term as a large chunk of the premium went to insurance component. As such, his goal was unmet. The initial premium was $500/month, which he reduced to $300/month in the past already.

Weighing the options

James was faced with a dilemma:

  1. Keep the plan going and not reduce the premium
  2. Reduce the premium to $100/month and free up more money for investments

Roshan noted that each of the options had their pros and cons. While the plan wasn’t what James originally wanted, the protection offered by the plan under $300/month was adequate and sustainable. Furthermore, the plan served a purpose by locking down on his health from two years ago – future insurance plans may be slightly more expensive. On top of that, reducing it to $100/month would also result in less insurance coverage. However, the second option provides James with more freedom to do with what he wants to do with the money.

In addition, Roshan also looked at other areas of James’ risk management and gave his perspective on those as well. For example, critical illness coverage, personal accident plans, etc. Impressed by Roshan’s professionalism and expertise, James immediately requested for Roshan to take over his AIA portfolio. Currently, it is an ongoing conversation where Roshan will further assess James’ future needs and identify gaps in finances be it investments or insurance.

Conclusion

It is important to engage the advisers who can give the right financial advice. James found himself in a quandary when the plan he bought did not align with his goals due to unsuitable advice. fundMyLife was pleased to have been able to connect the question James had to Roshan and we are committed to making sure more users like James have access to the right financial advice, by the right financial adviser.

If you find yourself in the same situation as James, or you’ve questions on financial planning, head on to our main site and ask our curated pool of financial advisers! Alternatively, you can also browse our individual advisers’ pages – just click on their profiles and you can ask them questions directly from their profile pages.

fundMyLife is a platform that aims to empower Singaporeans to make financial decisions confidently. We also connect consumers to the right financial planners in a private and anonymous manner, based on their financial planning questions.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

*name was altered for privacy

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