Questions you should be asking your Financial Advisor

1. Is this insurance or investment really right for me?

Whether you are a young professional or a new parent, there is always an insurance or investment product for you.

Find time to sit down with your Financial Advisor and extensively discuss your current lifestyle, your earnings and savings, your dreams and goals so your advisor can draw up a financial plan for you. With the financial plan, your Advisor can now recommend the appropriate insurance or investment products that can help you achieve your goals.

It can be an insurance plan with investment that matures over time, or a protection or emergency fund for your family.

2. How much should I be paying?

Be honest with your Financial Advisor and ask him to discuss and explain to you the insurance premiums, and even service fees and other fees that you will pay. This will prepare you on what to expect when your billing statement arrives. And if you also decide to open a mutual fund account, discuss how you can invest an amount regularly that will fit your budget. You can also ask for your Financial Advisor’s license, credentials and other achievements. This openness will strengthen your relationship with each other.

3. Can I still save money even while paying for my insurance or investing in a mutual fund?

An ideal Financial Advisor will go beyond making sure your coverage is paid. A Financial Advisor who genuinely cares will guide you on how to manageyourfinances and spending habits — which is crucial these days with the soaring prices of commodities and services due to inflation.

Sun Life Financial Advisor Eric Tan shares the following tips to his clients: (a) Understand your needs versus your wants; (b) Set up to 50 percent of income for needs; (c) Allocate only 20 percent of income to wants; and finally, (d) Allot 30 percent of income to insurance premiums and education.

4. If I want to grow my money, should I stop my insurance?

A knowledgeable Financial Advisor will definitely tell you not to! Because he will tell you that there are options available if you cannot continue to pay for the premiums of your life insurance plan.

If you want more flexibility, consider getting an investment-linked insurance product that gives insurance protection and invests a portion of your premiums so you can still grow your money. It differs from traditional plans because its gives you flexibility on where to and how long to invest, and access and withdraw the funds anytime you feel necessary while you are still covered.

5. How hands-on are you?

Each Financial Advisor is unique in catering to the needs of his client, but the good ones will meet with you regularly. Go beyond the traditional annual setup and request for quarterly meetings — at most — for updates on your financial plan, policy and investments review and to adjust when necessary if there are changes in your life stage or goals.

6. What other financial products should I consider?

It would really depend on the financial plan that you and your Financial Advisor have discussed. Your financial plan details your financial priorities in the short, medium and long term. Based on those priorities and time frame, your financial advisor can then recommend the products that would address those to ensure that you achieve your goals. It’s also important that you remain in constant contact with your financial advisor so both of you can track your progress against your financial plan and evaluate other life insurance or investment products that can fit into your overall plan.