Grab yourself a cup of coffee as we take a look at 5 reasons why it can pay to take advice about life insurance:
1) Financial Advisers add value
A Financial Adviser is qualified to help you assess the potential impact to your lifestyle, family or business, should you or a loved one, or an employee, suffer from a serious illness or die.
You will receive specific recommendations to mitigate against these risks, which will consider any current provisions, including benefits available via an employer and State Benefits for example.
This should provide you with peace of mind that should the worst happen your financial concerns should be minimised.
2) In many instances, the initial advice is free
Many advisers offer an initial consultation free of charge. Therefore, the only cost of advice, in many cases, is perhaps an hour of your time.
The adviser will be paid by the insurance company should they place your business with them. They will need to be able to demonstrate to the regulator of financial services (the ‘Financial Conduct Authority‘) that they placed your business impartially, that is, based on client benefits, as opposed to which insurer pays the most commission.
3) Buying life insurance can be like buying a well-fitting suit
That is to say, life insurance comes in different shapes and sizes.
For example, some life insurance policies pay out a lump sum – that’s one payment, which is typically much larger in size than a policy that pays out regularly, for example monthly. There are policies that will pay out a fixed amount of money should a qualifying event happen during the policy’s term, as opposed to a policy that pays out a reducing amount over the policy term, in line with a repayment mortgage for example.
The shape and size of such policies can vary greatly, as can their costs, so identifying which is most appropriate to cover specific liabilities can be complicated. A Financial Adviser will be able to help you assess your options and will recommend appropriate solutions.
4) Underwriting can be a minefield.
That is, an insurer is going to want to assess the risks associated with providing cover via an appropriate life insurance policy – be it covering one or more people.
The risk of somebody suffering from a critical illness or dying can be assessed on many levels. An insurer will want to know the age of the prospective life assured as well as details about their lifestyle, occupation, whether they’ve suffered from any previous medical conditions or partake in any particularly hazardous pursuits.
They will be interested to know of any potential hereditary conditions an applicant may be susceptible to and may even ask to see an applicant’s medical report from their GP, which is often par for the course.
Given the scope of an underwriter’s potential queries, a Financial Adviser will be able to help you answer these questions appropriately so that there should be very few reasons why a claim would fail later due to ‘non-disclosure’. That is, if a policy holder is later found to have not disclosed, or to have withheld, relevant information at the time of applying for a policy, an insurance company would be well within their right to not pay out on a claim.
Not only would this render any previous premium payments a waste of money, perhaps more significantly this could leave any supposedly rightful claimants without any right to claim. Therefore, it could be said that it pays to take advice.
5) Know exactly what is covered and what isn’t.
The difference between what one insurance company covers by way of a serious illness compared to that of another can differ greatly.
For example, some insurance companies won’t pay out in the event of an illness until it has progressed to a particular severity, whereas others may pay out partially but earlier on, before the illness has progressed further.
Some may pay out for something as specific as an Eye Stroke whereas others may not cover this at all. It therefore pays to know exactly what is and what isn’t covered – particularly if there’s a history of a particular illness within the applicant’s family.
These differing factors regarding what is and what isn’t covered by a life insurance policy can significantly affect the price paid. Again – it often pays to take advice.
If you are considering taking out life insurance, get in touch with Assured Life Advisers today.