The Importance for a Semi-Annual Financial Portfolio Review
When was the last time your agent met you for a financial portfolio review?
This is one of the first few questions that I will ask whenever I meet a referred client. In response, their answer usually revolves around one of the following permutations:
1. When the agent sold the policy to me N years ago. 👴🏻
2. My agent has left the industry; I don’t even know who is my agent now. 🤷🏻♂️
3. Yes, we are still in regular contact – the insurance company still sends me letters. 📬
P.S. Regular meetings with your Insurance Agent is vastly different from receiving letters from the insurance company itself. However, easygoing clients are often satisfied when the insurance company sends them mailers and letters.
Anyway, I hear such answers often. In fact, 7 in 10 of the referred clients that I have met encountered a similar plight. As a consumer myself, I do empathise with the situation.
For that reason, I make it a professional practice to meet my clients every 6 months for a financial portfolio review. In general, there are 3 reasons for doing so.
1. Company Updates
The authority constantly regulates the insurance companies in Singapore. As a result, new rules are implemented each time.
For instance, Ministry of Health Singapore implemented a new guideline last year. In brief, consumers with new integrated shield plan will have to make a compulsory co-payment.
As soon as the news broke out, many consumers were confused and concerned if they were affected. As their agent, I feel that it is my responsibility to highlight such information to my clients.
🔍 Find out if you are affected by this new guideline in this post: Changes to Rider for Integrated Shield Plan
At the same time, insurance companies have always been innovative and competitive. In effect, new products are launched from time to time to meet the clients’ needs.
For example, AIA Singapore launched AIA Beyond Critical Care earlier this year – the first in the industry to include insurance coverage for mental illnesses.
As a consumer, these information help us to make informed decisions.
2. Goals & Priorities
Let’s admit it, all of us have limited resources to achieve everything that we want to do in life. Well, financial planning works in like manner. Evidently we have limited budget and a long stretch of needs that begins from the day we were born, and till the day we leave the world.
Therefore, it is important to have a semi-annual financial portfolio review to
1. Revisit previous goals and check on the progress; 📊
2. Understand the priorities and (re)align goals; ⛳️
3. Create a plan to achieve the goals. 🏌🏻♂️
One of the tools that I use is an insurance policy summary – a piece of document that helps consumers understand all of their existing insurance policies at a glance. This is used in tandem with a comprehensive Wealth Report to create a complete financial plan.
Without a goal, you can’t score. – Casey Neistat
3. Agent’s Promise
According to a personality test, I am profiled to be an Assertive Logistician. One of my characteristics is being responsible. In other words, I take great pleasure to ensure that my client’s welfare is well taken care of. Let me explain.
Whenever a client and I decide to work together to achieve his or her financial needs, we will always end the meeting by understanding the timeline of events that follow. 🗓
- Application and Underwriting process
- Dispatch for the policy contract
- Scheduling a meeting upon the receipt of the policy contract
- Start of Free-Look Period
- Scheduling our Semi-Annual Review
I always schedule every meeting with the clients’ interest in mind. For instance, I make it a professional practice to meet my client as soon as he or she receives the insurance policy contract, and before the end of the free-look period.
During the meeting, I will highlight the list of things to note to the client. Moreover, these information must be the same as what I have presented during the point of application.
At the same time, the client has sufficient time to free-look the policy should he or she wish to make any alteration.
Furthermore, all my clients know that I am readily available whenever they need my advice or to help on anything. In fact, I will always encourage my clients to call me once in a while. This is particularly important when they are unsure of their policy details, e.g. if a claim can be made from their insurance policy.
If the client does not understand the details, or if we don’t keep in touch, then there is no value in buying the insurance policy at all.
To be honest, you will spoil your clients with this kind of service. – Client
Ultimately, I am a consumer myself. With constant changes in the industry, I will want to know where my money is going to. Additionally, adequate after-sales service is part of my professional practice to provide responsible financial advisory services. All in all, I am really enjoying the process and progress with my clients throughout these years. 😃
Share Your Thoughts 💭
1️⃣ When was the last time you have done a comprehensive analysis on your insurance portfolio?
2️⃣ Do you feel that it is necessary to have an insurance portfolio review?
3️⃣ How often do you meet your agent face-to-face to review on your insurance portfolio?
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