Mistakes You Make When Buying Insurance
- By Wayne Lennan
- •
- 28 Jul, 2020
- •
Your Adviser Can Give You Clarity and Vision
There are 7 mistakes people make when purchasing insurance and these can be avoided by seeking advice from the professional insurance adviser.
1. Buying Insurance online without professional advice.... Taking the quick option of online insurance is not always going to be the best outcome. Advisers give qualified advice and back it up with a defining document called a statement of advice, which is required by law. Using an adviser means you and your family have some certainty when you are accepted at the time of application. Online insurance often results in an assessment at the time of claim and can be declined because of non-disclosure, exclusions or unfair clauses in inferior products.
2. Thinking your cover is best handled by your superannuation fund.... Generally your super fund will offer the minimum amount of protection, with unclear definitions. And they often drag their feet when you make a claim. While you can continue with this cover it is important to cover any gaps in the limited protection they offer. A good adviser is not just involved in the sales process, they will be with you during the claims process also. The difference is significant!
3. Only considering price rather than value.... Price should be balanced with quality, service and communication. You should consider things like the capacity of the insurer to pay, the benefits included, how tight are the definitions of the policy, the claims payment capabilities and the exclusions or limits.
4. Buying insurance with premiums that increase as you get older.... Did you know you can buy life insurance where your premium can be averaged over the lifetime of the policy? If you are young and intend to keep your insurance for some time, you need to speak to your insurance professional who can help with this.
5. Skimping on the coverage you need.... If you were to die prematurely which option would you prefer for your partner - (a) keep the house you live in and not work again? (b) Keep the house you live in and not have to work for 10 years? (c) Keep the house you live in and go back to work after 6 months or (d) Keep the house but return to work within 12 months.
6. Not considering the methods of distributing the proceeds of the policy after your demise.... A competent adviser can show you the options best suited to your situation that can get the right amount of money in the right hands in the quickest time. There are a range of ownership options that affect the speed of distribution of funds from your life insurance policy.
7. Failing to review your situation and your cover as life events occur.... Throughout your life a variety of events change and shape our lives, mostly they are small but everyone is affected by significant events at some point. Every time you achieve a significant milestone or encounter a significant event in your life you should recalibrate your life insurance protection package. Your adviser will likely save you some money, get better value or make you aware of new products innovations that will reinforce your financial future.
Visit my website www.insuranceforliving.com.au and book in a FREE 15 minute insurance assessment so I can help make sure you have a Plan B in place in case something were to happen to you!
1. Buying Insurance online without professional advice.... Taking the quick option of online insurance is not always going to be the best outcome. Advisers give qualified advice and back it up with a defining document called a statement of advice, which is required by law. Using an adviser means you and your family have some certainty when you are accepted at the time of application. Online insurance often results in an assessment at the time of claim and can be declined because of non-disclosure, exclusions or unfair clauses in inferior products.
2. Thinking your cover is best handled by your superannuation fund.... Generally your super fund will offer the minimum amount of protection, with unclear definitions. And they often drag their feet when you make a claim. While you can continue with this cover it is important to cover any gaps in the limited protection they offer. A good adviser is not just involved in the sales process, they will be with you during the claims process also. The difference is significant!
3. Only considering price rather than value.... Price should be balanced with quality, service and communication. You should consider things like the capacity of the insurer to pay, the benefits included, how tight are the definitions of the policy, the claims payment capabilities and the exclusions or limits.
4. Buying insurance with premiums that increase as you get older.... Did you know you can buy life insurance where your premium can be averaged over the lifetime of the policy? If you are young and intend to keep your insurance for some time, you need to speak to your insurance professional who can help with this.
5. Skimping on the coverage you need.... If you were to die prematurely which option would you prefer for your partner - (a) keep the house you live in and not work again? (b) Keep the house you live in and not have to work for 10 years? (c) Keep the house you live in and go back to work after 6 months or (d) Keep the house but return to work within 12 months.
6. Not considering the methods of distributing the proceeds of the policy after your demise.... A competent adviser can show you the options best suited to your situation that can get the right amount of money in the right hands in the quickest time. There are a range of ownership options that affect the speed of distribution of funds from your life insurance policy.
7. Failing to review your situation and your cover as life events occur.... Throughout your life a variety of events change and shape our lives, mostly they are small but everyone is affected by significant events at some point. Every time you achieve a significant milestone or encounter a significant event in your life you should recalibrate your life insurance protection package. Your adviser will likely save you some money, get better value or make you aware of new products innovations that will reinforce your financial future.
Visit my website www.insuranceforliving.com.au and book in a FREE 15 minute insurance assessment so I can help make sure you have a Plan B in place in case something were to happen to you!