Quora Answer: Why Do We Need Financial Services Consultants?

The following is my answer to a Quora question: “Why do we need financial services consultants?” 

Financial services consultants are crucial for financial planning.  This is not something the average person can actually do by themselves because it is a lot more complicated than they realise.  There are a few reasons for this financial planning, and they all have different considerations.  People plan to mitigate risk, they plan for wealth accumulation, and they plan for wealth preservation.  Under these principles, they have investment products, insurance products, and everything in between for the purposes of endowment, protection, and asset growth. 

Without services consultants, the average person has to navigate the system to have their coverage incepted, or choose the most appropriate investment product.  They need to deal with underwriting and compliance concerns which can be onerous.  The larger the amounts involved, the more complicated it is.  Then, they have to manage what they pay for, which is the servicing process.  Finally, there are the claims, and the exits, which have to be managed.  Even trained finance professionals have financial services consultants to manage their risk and assets.  The wealthier the individual, the greater the number of such people he would have, all specialised in some aspect of the business.  Financial services consultants represent you to the principal, whether an insurer, a bank or a fund; in the same manner that a lawyer represents you to the court or other parties.