Why who we can work with matters to you

It depends if you just want to look the part or actually win the game - Drew Browne Founder Sapience Financial

The secret life of an Approved Product List (the APL) - and why this matters

There are two important details that most financial advisers are uncomfortable talking about.

• Fact: Not every life insurance company can insure every person, every type of occupation, and every pre-existing health condition.
• Fact: An insurance company is only competitive in a small part of the market; this means the one-size-fits-all approach does not fit at all.

Different insurance companies specialise in covering different parts of the community - that's why there are so many of them. Perhaps a simpler way to see it is; 'There is a reason why you can't buy fried chicken, tachos, and a hot dog, from the McDonald's™ hamburger chain. 

Every life insurance company has its specialty and a financial adviser's duty is to be able to match the right one to your unique circumstances.

Why understanding this seemingly small detail, can save you thousands

The Problem: Many financial advisers who provide risk advice proudly state they, 'only work with the biggest insurance providers, and you might see 5 to 7 logos of who they are restricted to working with.  (We've even recently, seen the same limitation reframed and disguised behind the words, '....only the most reputable insurers....).  Technically speaking this is referred to as a limited approved product list.

This means all their research and focus is only limited to that small limited segment of the market so the question to ask is would they know (or care) if another insurance provider has a better option for you?

• Worse still, if your personal situation did not fit their limited number of suppliers, you could find yourself told you'll have to endure policy exclusions or restrictions, maybe pay higher insurance premiums - or worst - told you are uninsurable - when in fact, you are not.

You can end up living a smaller life, perhaps living with nagging anxiety because someone who was only working from the smallest pool of opportunities simply could not quickly find that one-size-fits-all solution for you.

The Solution: Make sure you ask any potential financial advisers if they work from, a limited approved product list or whether they have an Open Approved Product List.

Insight: Put another way, if you're current financial adviser only has access to 5 out of the 15+ life insurance providers in the Australia Life Insurance market, the chances are you could be paying too much, and you could end up with a policy that did not really fit your needs or you'd miss out entirely on being insured - and risk believing that the problem was with you and not the financial adviser.

This is why Sapience Financial can work with every life insurance provider in the market

Sapience Financial holds access accreditations with every Life Insurance company in the Australian market today.

• We can research, negotiate and deal with the entire market for you, so you get access to a life insurance policy that's tailored to your individual needs and circumstances, and in your best interests.

And just so we are transparent and clear - Sapience Financial is not endorsed by nor do we endorse any of the organisations or product providers that may be represented by a logo on this site. The usage of these logos is only for the purposes of comparison.