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What are the benefits of having a life insurance adviser?

What are the benefits of having a life insurance adviser?
Life insurance, which also includes TPD insurance, income protection, trauma insurance and child cover can be quite complicated. A life insurance adviser can help you navigate the differences between policies with respect to definitions and exclusions, and the tax implications of paying your premiums from your pocket or through your Super. It’s easy to overlook the importance of life insurance and to not think about the risks that have the potential to devastate you and your family financially. A life insurance adviser will get to know you, and then use their knowledge of the insurance market to source the best solutions for your insurance needs and then act as an advocate for you at claim time.

Here are 6 reasons everybody should use a life insurance adviser:

1.      Knowledge and expertise
Advisers have the knowledge and expertise to navigate the life insurance market to obtain the best insurance options for you. This involves comparing complex policy definitions and using their connections with underwriters and business development managers at the life insurance companies to obtain options with competitive pricing. Advisers are industry professionals. They are required to hold industry recognised qualifications and to maintain a minimum number of hours of Continuous Professional Development each year to keep on top of the ever-changing insurance world.

2.      Underwriting and guaranteed renewability
If you purchase insurance through an adviser your policy will be fully underwritten and guaranteed renewable. Fully underwritten means to take out a policy you need to provide information including your income, your medical history, your occupation, and your pastimes. The underwriting assessment at time of application rather than at time of claim increases the chance of claims being paid. Guaranteed renewable means that your policy cannot be cancelled, and premiums cannot be increased due to any change in your health, occupation, or pastimes. Additionally, if your health, occupation, or pastimes change, no exclusions can be added to your policy.

3.      Long-term adviser
Advisers will maintain an ongoing relationship with you so that when your insurance needs change, they can update your insurance where required.

4.      Represent you, not the insurer
Advisers work for you and will always act in your best interests. While interacting with underwriters and business development managers at insurance companies, there is a clear understanding that advisers are representing their clients and that there are no allegiances with any particular insurance company. Advisers compare insurance products across different insurers to find the most appropriate policy for their clients at the best possible price.

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Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.

Public Liability insurance is there to provide protection if someone makes a claim against the insured, the business or its employees.

Advisers work for you and will always act in your best interests. While interacting with underwriters and business development managers at insurance companies, there is a clear understanding that advisers are representing their clients and that there are no allegiances with any particular insurance company. Advisers compare insurance products across different insurers to find the most appropriate policy for their clients at the best possible price.

5.      Your advocate at claim time
Claims are where ‘the rubber meets the road’ for the insurance contract between clients and the insurers. The role of insurance advisers is to liaise between the client and the insurer to make sure the insurer has the correct information to assess the claim. This is important as there is a potential for incorrect information to lead to poor claim outcomes for the client. There is also the potential for the claim’s officers and other people from insurance companies to make mistakes. In these instances, advisers will advocate for their clients with the backing of their licensees to obtain the best outcomes possible for their clients.

6.      Provider of education about risks
It’s important for clients to have a sound understanding of what their insurance policies cover. Insurance contracts are legal and complex contracts that include a lot of technical jargon particular for the industry. A major role of insurance advisers is to educate their clients of their risks and to explain the insurance policies to their clients in layman’s terms.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Craig Muldoon, Stress Free Insurance, ABN 68655178377, AFSL Community Broker Network

This article originally appeared on What are the benefits of having a life insurance adviser? and has been published here with permission.

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