Us as consumers are now much more switched on with ways to save money. We know to shop around for car, home and health insurance. To investigate how to get a better rate on our mortgage and even how to compare our utility providers. So why do we need a financial advisor to tell us which Life Insurance to select?
We are bombarded with advertising from these “direct” life insurance providers that offer cheaper premiums and make applying easy. Here’s what they DO NOT tell you:
- Although these policies ARE easy to acquire with no pre-assessment requirements initially, this will be performed if and when you actually need to make a claim. This means that the insurance you have been paying for might not actually cover you and you will not find this out until you really need it.
- Direct Insurance also has the shortest lifespan, with many policies terminating when you reach the age of 70. Unlike Retail Insurance which covers you until you reach 99.
- Studies have shown that these policies can be up to 50% more expensive as competitive rates are actually offered by insurance providers to financial advisors.
With a well-trained and experienced financial advisor, you will learn about different providers, policies and features that you otherwise would not be aware of.
They take into consideration your financial capacity and the type of cover you will need based on your personal circumstances, lifestyle and budget.
They can explain to you how each policy works and what is included in your cover, so you are not left unprepared and blindsided.
Although it is a longer process applying for Retail Insurance through a financial advisor, with medical records needing to be provided and applications forms a mile long, you have an experienced professional to assist you throughout the application process and continues to act on your behalf throughout the life of the insurance.
This includes if you need to make a claim. The pay-off for this time is a much more secure policy you can rely on giving you the assurance that you will experience few or no problems when claiming.
So do not get left paying for cover you either do not need, or worse, a policy that is not worth the paper it is written on.