Insurance agencies do not enjoy a great reputation. Many clients will begrudgingly take up a policy believing that if a claim were to be made the insurance agency would try to wriggle out of paying it but In our experience most insurance agencies are willing to pay the claim when it fits within the wording of the policies – in fact they are legally obliged to do so.
Many clients will base their decision on price and simply opt for the cheapest cover believing that they are comparing the same product. But pricing on insurance is based on the wording of the policies. The problem is that not all insurance agencies have the same wording in their policies. For example if you have a life insurance policy that states it will pay out only in the event of Accidental death it will be far cheaper than if you have one that says it will pay out in the event of death no matter what the reason. Yet both policies are considered to be “life insurance policies”.
While we will always recommend that people read their policies we know that most will not. Our recommendation is to have an Insurance Adviser/Broker who is able to compare products and explain the differences. It is imperative that the Adviser should have access to several different agencies because no one agency has a “one size fits all” product. What suits one client may not suit another. In fact some insurance agencies will only offer their products through an Insurance Adviser/Broker as they know that the “advice” that is required by legislation will be given by the Broker and that the Broker will be able to independently offer the options that best suit the client.
A good insurance Adviser will be able to identify your priorities including pricing. They will be able to highlight what is being sacrificed on a cheaper product or agency so that the client is able to make an informed decision.
A good Adviser will keep up to date with changes knowing that what was recommended today may not be the recommendation tomorrow as insurance products are constantly changing.
Perhaps one of the biggest advantages in using an Adviser is that if a claim were to be made they will be an Advocate for the client ensuring a process that is less stressful and ensuring that they will have maximum opportunity to access the benefit form the policy that was arranged. You want to have an Adviser that works for you, someone who will fight for you and not just bow down to decision made by the insurance company if it was adverse for the client.
Most importantly the Adviser needs to be acting in your best interests. In other words you have to have someone that you trust. Someone that you believe is giving you advice that benefits you. This is the hardest thing to identify. Word of mouth recommendation, previous positive experiences with the Adviser and recommendations from other professionals generally are a good way to try and ascertain if the Adviser is someone you can trust. Sometimes (albeit unreliable at times) it may just be that instinct thing that makes the decision as to who you should choose.
