Life insurance policies are as diverse as the clientele they are designed for. Different policies will have different features and benefits, and there is no one-size-fits-all policy. Determining the type of cover that suits your needs is the single most important step in acquiring a life insurance policy, as it ensures that your cover suits your financial situation, budget and life insurance needs. However, getting the right policy is easier said than done, as insurance agents rarely assess the suitability of a policy to a client's comprehensive needs and circumstances. The only way to ensure that you get a suitable policy is to make use of life insurance advisors.
What Do Life Insurance Advisors Do?
Life insurance advisors are professionals that provide advice to clients contemplating acquiring or changing their life insurance policies in a bid to help them select the most suitable policies. An advisor acquires a client's personal information on family life, lifestyle and financial situation and uses it to assess the client's insurance needs and recommend appropriate policies.
Life insurance advice is a highly regulated profession in Australia. Advisors are required to be competent in training and experience in order to offer valuable advice to clients who rely on them when choosing policies. They also have a legal duty to provide you with comprehensive and unbiased information that is not misleading or deceptive in any way. Some of the markers of good advisors include:
• Certification: Competent advisors should be registered and authorized by the Australian Securities and Investments Commission, and should hold an Australian Financial Services License.
• Experience: It is not enough for life insurance advisors to be licensed and registered. If you are going to use their advice to select a policy, you need to be sure they have technical knowhow of the market and its products, and this can only be gained through experience.
• Professionalism: Good advisors will offer you unbiased and reliable information and then give you time to think over it before making a decision. Any advisor that pressurizes you to make a decision is simply unprofessional and unreliable.
Benefits of Using Life Insurance Advisors
Life insurance advice from professionals may come at a cost, but consulting advisors is highly beneficial for the following reasons:
• Knowledge and Experience: Advisors are professionals and as such have the knowledge and experience required for analyzing your financial situation and offering suitable recommendations. They also have firsthand knowledge of the most competitive policies in the market and will get you a highly suitable policy at a good rate.
• Sound advice: Life insurance advisors are under a legal obligation to provide unbiased advice, failure to which you can sue them for any losses incurred as a result of misleading advice.
• Guidance: Advisors go beyond advising to offering help in the application of life insurance cover to make the entire process as smooth as possible.
• Advice for high risk applicants: High risk applicants might have a rough time finding a policy suits them. Advisors will not only help in finding a policy, but a competitive one at that.
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