Many industries, especially those that deal with you parting with any of your hard-earned cash, are cloaked in myths that can make decision-making difficult. The long-term insurance industry is no different – with many people avoiding it altogether because they fear that the myths may indeed be true.
Let’s have a look at some common misconceptions:
Myth 1: Using an insurance intermediary costs you more
Consumers tend to believe that going direct to cut out the misunderstood ‘middle-man’, automatically means getting a better deal. However, intermediary pricing and how it can benefit you may surprise you. For starters, you don’t pay any extra fees for the intermediary to find you the best deal. Secondly, your intermediary is not obligated to offer you deals from any single financial services company. Since your premiums will depend on your risk profile and the type of cover you need, an intermediary will actually save you costs because they will ensure that the cover you get suits your unique needs and budget. Furthermore, an intermediary will ensure that all technical policy requirements have been met so that if you need to claim, the claims process will be simple.
An intermediary will also ensure that your cover grows with you and remains appropriate to whatever life stage you are in:
Young and single
Believe it or not, this is the best time to start your financial planning journey. As soon as you are earning an income, being on top of managing your money and understanding your long-term goals is essential. Simply put, the sooner you start the better the results.
Couple
After marriage, your responsibilities increase and your insurance needs change. An intermediary will guide you as to what changes you should make to existing policies and what cover you might consider adding to ensure that your partner is not left with unnecessary debt or hardship should something happen to you.
Family
The next big step on life’s journey means yet more reasons to ensure that you get the right advice to make 100% sure your children and your spouse will be taken care of financially.
Myth 2: only wealthy people need a financial advisor
Contrary to popular belief, financial advisors and intermediaries are not only suited to mature adults with big bank balances. No matter what life stage you are in, an intermediary will save you three valuable things – money, stress and time.
Knowledge of complex products
Long-term insurance can be a complicated and overwhelming environment to navigate. What is the best cover for me? Am I getting the best value for the premium I am paying? Do I understand any potential restrictions? Have I completed all the forms correctly so that my claims will be paid? Intermediaries are legally required to acquire the skills and knowledge to offer you proper advice that will give you the best cover at the right price.
Access to specialist underwriters
Your risk profile is directly related to the type of cover you can receive and the premiums you will pay. An intermediary will ensure that your application is assessed properly, priced correctly and accompanied by all the relevant required documentation to ensure that there are no delays.
Claims assistance
It is at the claims stage that you truly appreciate the value of your intermediary. His experience and knowledge of the industry mean that you will get technical advice, and help with the claims procedure and conflict resolution if necessary.
