I was recently overseas and was amazed at the number of different outlets offering personal insurance. Even since I returned I have been noticing the increase in Online and TV advertised options encouraging people to purchase risk cover without going through an advice process. In these days of regulation, it is important that you have gone through the correct process via a reliable source so that you can be confident that the advice being given regarding the type and level of cover to protect you, your family and assets is in fact the right advice.
The decision when going alone on your insurance is generally price based, without any consideration of personal situation or product limitations whereas working with an adviser should involve discussion regarding who or what is important to protect at claim time. As part of the review process a scope of service document and disclosure statement should be provided by your adviser so that you can be sure of their experience and the type of financial service that they are able to provide.
However, an adviser supplying you with the correct paperwork is no guarantee of the quality of advice or support that you will receive from them. Does your adviser offer reviews of your cover to make sure that the level and type of insurance offered is still relevant to your personal situation? Do they provide you with a range of options and solutions to meet your needs? One previous client had insurance arranged through two different sources, and wanted to make a change to their life cover as they had taken out a new home loan and had a larger amount of debt which they wanted to cover. The first adviser approached told the client that an increase in cover would not be possible due to a claim that had been made previously. When this same client spoke to us, we were able to provide them with a solution where they were able to apply to increase the level of cover due to a feature of the Insurance originally arranged for them.
Whenever you make your decision of which adviser to use or what insurer to go through (Iif you don’t want to consider options from a range of providers), it is important to remember that not all Insurance products are created equal. The decision of which company to go with shouldn’t be based on price alone. Part of the decision making process should consider the importance of good claims payment statistics and the stability of the insurance company. After all, the key consideration when settling on your Insurance provider and the person who is going to be there to help you at claim time, should be, “Who is going to help me make sure that the right money goes to the right person at the right time?”
When you’re deciding who to talk to when obtaining quotes or information regarding your personal insurance needs, make sure that you are comfortable with the person and/or organisation that will be there to look after you and your family at claim time.
