I Don’t Need An Insurance Advisor
As an Insurance Adviser here in New Zealand this is something I hear a lot. People know they need insurance and realise there are only 2 ways to do get it sorted. The first is to do it yourself. This is fine and in line with the New Zealand DIY tradition and here is my guide to DIY insurance. It might save you from making a mistake. The other option is to get a fully independent adviser, like me.
What Will An Insurance Adviser Do For Me?
1. As an adviser I won’t charge you for their services, this is common in the industry. We get paid commission by the insurance company. This commission can’t be saved by going direct to the company.
2. Going direct to the company will not make your premiums any cheaper. Calling a company will likely only get the contact details of one of their preferred advisers. Many companies do not offer direct sales to the public. It is important to remember whoever you speak to from the insurer or bank is not independent and will be selling their employers product only. Even if this is not the best option for you.
3. Understanding the products on the market is the job of an adviser. That way an adviser can get you the most efficient cover to fit your needs. Shopping around on your behalf is what we do. With insurance what the headlines give and the small print takes away and it makes a difference having someone that knows the small print in your corner.
4. A policy has hidden bonuses and pitfalls. If one cover looks slightly more expensive then it could be because it has an additional benefit. A benefit could actually mean a saving. These benefits are not generally advertised and most people can’t be bothered reading the small print to find them … A good adviser can.
5. Being over insured is wasting money. Many people take out insurance and don’t look at it again and this can lead to huge costs over time. An adviser will contact you at least annually. This is not to try and sell you more insurance but to review your policy. It is to make sure the policy still meets your needs and it is giving you the best the market has to offer.
6. Being under insured can be devastating, especially when it comes to claim time. People sometimes think they are well covered. At application people generally guess they are better off than they are. Sometimes expenses are underestimated. An adviser will spend the time to understand your financial needs from an impartial position.
7. Getting the application right is essential. A mistake here can result in the cancellation of the policy and this might not become evident until claim time. An accidental omission from the application is treated the same as a deliberate lie. Having an adviser in your corner can help to ensure that there are no mistakes made.
8. When a person needs to claim they are generally very ill. This is not the best time to be dealing with an insurance company. Your adviser will do that for you. As an independent adviser I am not on the insurance companies side. I want to see a successful claim and will move heaven and earth to make it so.
And There’s More …
As I read over this post though I realise there is one I missed. As an adviser I have a relationships with each company, I regularly meet and chat with the underwriters, claims team and regional managers. An adviser can leverage these relationships for your benefit.
So are you sure that you don’t need an insurance adviser?