What You Wanted To Know About Life Insurance Advisors But Could Not Ask

Life insurance advisors are instrumental in the achievement of lifetime financial security of policy holders. These are qualified financial product advisors who have been thoroughly trained under strict requirements of the Australian Securities and Investments Commission (ASIC) and hold an Australian Financial Services (AFS) license. They will develop a fruitful and long-term relationship with you, guiding you through each stage of your life.

Financial product advisors help you develop comprehensive financial strategies and recommend the most suitable insurance products; whether you're single with few responsibilities, married with children, planning to acquire property or getting a loan. Without their expert insights, you can easily make major financial mistakes.

How Do Advisors Guide Clients?

Based on their professional qualifications and expertise, advisors possess an in-depth understanding of all the critical aspects necessary for proper financial planning. They are also deeply familiar with the wide variety of insurance products and services within the rapidly changing personal insurance environment. This means that they can guide you in making cost effective decisions and developing sound financial strategies.

Advisors usually take a multi-faceted approach while working with clients. This involves a structured process of handling financial issues graded from the most critical to the least. Some aspects that professionals would advise clients to treat more urgently may not be perceived the same way by many people. For instance, a 2014 survey by MetLife and FSC indicates that a high number of Australians would rather prioritize car or home insurance compared to health insurance. This goes contrary to sound financial planning that would require purchasing health insurance first.

Why You Need A Financial Products Advisor

Whether you believe that financial advisors offer any value or not, it's definitely a wise decision to receive advice from a third party regarding major financial decisions. How much better that advice would be if it comes from a qualified and highly trained professional in the financial sector. Moreover, if the financial decisions that you make have the potential of not just affecting your entire life, but also the lives of your dependants, then you surely do need expert advice. The cost of paying for such advice is hardly comparable to the long term benefits derived from it.

According to legal provisions (the Corporations Act 2001), an advisor is obliged to offer the most appropriate service to every client. They are bound to act in your best interest, regarding provision of insurance advice. Such advice should also be appropriate to the specific client, meaning that you will receive a highly customized service suited to your specific needs. This goes beyond the general advice that you can easily get from online or offline resources. Most of all, even if the financial advisor may be contracted by an insurance company, he/ she is obliged to place your interests above those of the company.

Although you will need financial advice before purchasing life cover, it's also critically important to maintain a long term relationship with an advisor after getting coverage. This will help you quickly deal with changing financial dynamics in your life, especially when you make major decisions, like getting a mortgage or having children. Financial advice is also necessary during the claim process, particularly in helping beneficiaries make sound financial plans.

Kerrie Peacock regularly analyses new trends within the Australian personal insurance market. She shares such valuable information to help Australians make informed decisions. For more information and advice, log on to www.mecovered.com.au/life-insurance-advisors/.

This article was published on 15 Aug 2014 and has been viewed 581 times
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