Freedom of choice is a normal part of everyday life because we understand that one size does not fit all.
Choice in the types and sizes of clothes we wear, types of cars we drive and even smartphone and tablet devices we use.
Why is this important to insurance advice?
People seek financial advice when they need to achieve or protect something significant. The process is usually a combination of strategic advice about your situation, establishing a clever strategy to solve the problems and using a financial product, like life insurance, to help bring it all together.
- But different policies have different features - not all policies cover all occupations and not all companies cover all illnesses or health conditions. This is where you need a professional who can help you find something that actually fits your situation and suits your needs.
This is where you need a professional who can help you find something that actually fits your situation and suits your needs.
If your financial adviser doesn't have access to all the possible insurance products in the market, is there a risk you migh end up with a low quality solution or worst - miss out?
Cameron, Diabetes and a DIY approach to his personal insurance
Cameron had been diagnosed with diabetes early on in his life. He'd been admitted to hospital as a child with a diabetic coma after a camping trip went bad and he'd had some problems with medications earlier in his adult life. His diabetes is now stable and well managed.
Now with a young family, a mortgage on his first home and another child coming along shortly, he needed to make sure his family wouldn’t be left to pay significant levels of debt or need to be forced to sell the house to pay for medical bills, if his health changed significantly due to a sickness or injury.
Cameron first tried the DIY approach
Many consumers have now begun to be more cautious with their online insurances purchase and understand that many of the insurance comparison websites are actually owned by the same insurance company and have been cautioned by ASIC.
This is Camerons experience of his own DIY approach getting Income Protection insurance sorted;
- Cameron went to his superannuation fund to try and get income protection insurance cover but was formerly declined due to his past health situation.
- Cameron then went to the bank and applied for cover but was refused due to his current type of higher risk occupation.
- Camron then tried to get insurance from his car insurance provider who formally refused him income protection insurance due to his past history of being declined twice already for income protection cover. (ie: from his super fund and the bank)
- Cameron then tried to get insurance through a direct telemarketed service who promised the world and sold him a policy over the phone. Trouble was when Cameron’s partner read through the fine print in the policy documentation later – it didn’t actually cover him for the first 5 years of the policy until the final assessment of his eligibility for cover, would be completed when he made a claim on the policy.(This is called this delayed underwriting and it was meant to make the policy cheaper)
Cameron’s problem was not his diabetes condition – it was that each of the people he’d gone to had a limited approved product list when it came to who they could use for insurances. The solution he needed, was simply not on the list of these different organisations he’d approached and they didn’t see the need to tell him about their limitation befpore taking his application.
And he wasn’t to know the difference – and many Australians find themselves in this same position through no fault of their own.
At Sapience we don’t have this restriction. As a privately held advice company without franchise restrictions, limited product lists or bank adviser sales targets, we can afford to put the best interests of our clients ahead of making just profits for shareholders and institutional owners. Drew Browne -Sapience
Cameron decided to let Sapience sort it out for him
Cameron was finally referred to Sapience through a family member and we established the right strategy and then sourced the appropriate insurance product to protect him and his family.