Saturday, 7 July 2007

Insurance Agent VS Property Agent

Hmm....Below are just some of my thoughts...

Insurance Agent
1) Zero-Capital:
- 3 papers are required to become a licensed/ certified Insurance Agent
- Cost of 3 papers are: M5 ($107), M9 ($107) and HI ($81.90)
- These 3 papers are required and recognized by MAS
- Any financial industry in S’pore will recognized these 3 papers, eg: banks.
- Should one leave the insurance industry, the licensing can still be used in other areas. It’s an asset just like car license.

Property Agent
1) Capital required:
- Cost of advertisements to get customers
- One advertisement cost about $500 in Straits Times on Saturday
- Let’s say this advertisement is running for a week, it will cost $3500 (7 days)
- Courses that Property agents go through are very niche and should one leave, the licensing becomes useless.

Insurance Agent
2) Travel conveniently:
- You don’t need to possess your own vehicle to sell insurance.
- Because sales are normally done either at prospect place, road show or offices.

Property Agent
2) Own vehicle preferred:
- Imagine you are a Property agent and today you are going to bring your customer to a few spot to view houses.
- Are you going to reimburse their taxi fares or take the train with them to the next location?

Insurance Agent
3) No season:
- Anytime one can buy insurance.
- When the market is down, it does not affect. Because insurance it’s a long term commitment.
- People tend to buy more coverage when times are bad.
- People also invest more when times are good.
- LIA did a survey and found out that a person will buy approximately 7 policies per lifetime.

Property Agent
3) Seasonal Business:
- When property prices are soaring, people tends to sell. Who will buy?
- Vice versa, when market is bad, people buy but no one wants to sell.
- In other words, demand and supply does not equate.
- Of course, there are exceptional cases. But how often do you find such cases?
- And how many properties can one buy in a life time? Unless the very rich, do you have such customer base?

Insurance Agent
4) Passive Income:
- Insurance agents are paid passive income.
- They are also rewarded with bonuses at the end of the year plus company’s incentive trips (at lest 3 trips per year).
- When they retire, company offer retirement package to them.
- Passive income offers the flexibility to choose when to work, especially good for working parents.

Property Agent
4) No-passive Income:
- People who do not know how to save will suffer from this pay scheme.

Insurance Agent
5) Bigger market:
- One can sell insurance to anyone on the street, buses, trains, etc.
- From the young to the old.

Property Agent
5) Smaller market:
- Try selling property to a 17 year old chap?

Insurance Agent
6) Personal Development:
- One becomes more money and financial savvy.

Property Agent
6) Personal Development:
- One becomes more property savvy.

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