A potential client is risk-averse and only wants to save money in a bank, but they have dependents and no life insurance. How would you handle this situation while upholding your fiduciary duty?
RoleSales Representative
DifficultyEasy
TopicBehavioral
Asked at
Why This Is Asked
The mandatory training course includes ethics because advisors handle sensitive life savings; the Forum assesses whether you naturally prioritize client welfare over a quick sale, aligning with Sun Life's "doing what's right" culture.
General Approach
Demonstrate empathy first, then educate with simple analogies, and always disclose both benefits and limitations. Frame insurance as a complement to saving, not a replacement. Let the client decide, showing you respect their autonomy.
General Answer
Ask about their dependents and financial obligations so they can start to see the potential gap themselves, rather than being told what to do outright. Use simple, relatable comparisons to explain that savings alone don't protect dependents if the income-earner is unable to work or passes away, since savings and insurance serve different purposes, one for accumulation, one for protection. Present balanced information, explaining clearly both what a savings-only approach provides and where its limitations are, and what insurance would add, without overstating benefits or glossing over costs. Suggest that adequate protection, such as life insurance sized to cover their dependents' needs, can complement their savings goal rather than replace it. Respect their final decision even if they choose to save only; your fiduciary duty is to make sure they understand the tradeoff clearly, not to force a sale. Offer to revisit the conversation later without pressure, since some clients need time to process a reframe like this before deciding.
PH Interview Gotcha
A common misstep is sounding pushy: "Sir, kailangan niyo po talaga ito, sayang ang pera" (Sir, you really need this, it would be a waste of money otherwise). Instead, acknowledge their fear and provide factual comparisons, allowing them to see the gap themselves. Say: "I understand why you feel safe with a bank. May I share how some families combine both saving and protection to avoid financial shocks?"
Sample STAR Answer▾
S
Situation
In a personal finance class, a classmate confided that her father refused insurance, believing it was a scam, and kept all savings under their mattress. She worried because he was the sole breadwinner for three children.
T
Task
I had to help her see the risk while respecting her father's perspective, without being a licensed advisor yet.
A
Action
I shared simple, non-technical examples of how a small insurance premium could protect their savings from being wiped out by a medical emergency. I compared it to a helmet: you hope never to need it, but it saves you if you fall. I gave her a Sun Life financial literacy pamphlet from our school career talk and suggested she show it to her father, emphasizing that it wasn't about distrusting banks but adding a layer of protection.
R
Result
Her father agreed to meet with a licensed advisor after seeing the pamphlet and hearing his daughter's concern. The family later purchased a basic life plan that fit their budget.
Key Takeaway
Ethical advising means patiently educating clients to make their own informed decisions, not pressuring a sale.
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