Why it pays to NOT go direct for your insurance
[I have used the terms adviser, agent and broker synonymously]
the insurance ads you see on TV are either for general insurance (I can't seem
to get that NRMA tune out of my head!) or for direct life insurance (e.g.
insurance line, real insurance).
products that you can only get via a qualified life insurance adviser are not
advertised. I don't know why, perhaps we do such a great job for the insurance
companies they don't need to advertise for your business! Perhaps the regulator
doesn't allow it.
any case, you may not know that in general, insurance sold via an agent is
generally cheaper than that sold direct. The biggest reason for this is that
agents qualify the life insured to a much greater degree, thereby reducing the
risk to the insurer. Also, insurance advisers are paid by the insurer so that
you are not out of pocket for seeking
the advice you need and taking up the cover (unless you have agreed to fee for
service with your broker).
other day, a client of mine received her annual insurance notice and felt the
increase in premiums was a lot. Having had a recent poor experience trying to
claim on behalf of someone else under a general insurer for workers
compensation, she decided to do some investigating for herself.
went online, compared a few products and found that she could save $700 a year.
The problem was, she was not comparing apples with apples.
she not come to me to discuss her situation and seek my advice, she would have
ended up with an inferior product to her existing cover and could end up having
an even worse experience for herself if she ever needs to claim.
professional financial planner, I put your interests first. This means I work for you, the client.
I have access to the full market of life insurance products and by working with me, you get the benefit of:
- My knowledge of insurance policies and the differences between different contracts;
- My skill in discovering and
determining your wealth protection needs and matching your needs to the right
- My empathy to understand you and
give you priority;
- My availability and accessibility
to answer all your questions;
- My persistence and confidence to
ensure you take up my recommendations;
- My expertise in managing the
application and underwriting process, ensuring you get the best outcome;
- Access to our claims experience, so
that if you ever need to claim, we are there to help you through the process,
getting your claim secured as quickly and as pain free as possible.
recent adviser presentation that I attended, high profile and recent insurance
claimant Gail O'Brien, wife of the late Professor Chris O'Brien (Chris O'Brien
Lifehouse at RPA) stressed to us that in her view as advisers we have a social
responsibility in doing our job, and that in her experience "not having it
[insurance] is not worth the risk".
I encourage you to share your stories with me
and to spread the word of the value of life insurance and the value your
financial adviser brings to “securing your financial slice of life”.
In : Life Insurance
Tags: insurance "direct insurance" "life insurance" protection