Why you should not DIY your personal insurance

19 August 2020

Personal Insurance in the 21st century is a necessary evil. I should know – I work with people everyday who need to be insured, or who are claiming on their personal insurance, and if they didn’t see the need for insurance, they wouldn’t have it..

I’m not going to bore you with what insurance cover you should or shouldn’t have or the technical details. But I am going to tell why you should not DIY your personal insurance!

If you don’t yet have the assets you need to retire, personal insurance is something that you need to have. It is often forgotten about until you hear a horror story from a friend or family member who did not have the right cover or not enough cover. Hell, I have experienced it firsthand. A friend of mine was playing rugby union and had an accident on the field and can no longer walk. Did he have the right insurance? No. He must now rely on his family and the government disability pension to support him through life. He was in his early 20’s at the time, with a 6 month old child.

People will insure their home and car but often forget about their income. Without your income how are you going to afford to live, eat, have a place to live and enjoy the little pleasures in life?

You need good advice

In this time of easy access to information and services via Dr Google and those annoying life insurance adds, it’s tempting to think you can just pick up the phone, or respond to the first thing that comes up when you search online for insurance. It might sound easy, but let me tell you, getting the right insurance for your unique situation, that will be there if and when you need it takes some skill and inside knowledge.

Here are some sound reasons why you need an adviser:

Price is not everything

We are in a day and age where people are trying to save as much money as they can by cutting costs. Insurance isn’t something you want to skimp on as it can really hurt you when you really need it. I know people who want to try and save money and there are many websites claiming to save you money and doing the hard research work for you – but don’t be fooled. Is that person on the phone a professional with qualifications and many years of insurance industry experience- or are they a trained salesperson earning commissions?

What do you do then to find the best value policy that has the best policy terms that you can rely on?

Having an adviser on your side saves you time.

We work for you, not the insurer! No matter what your personal or medical circumstances are we will fight for you to get the best possible outcome to get you insured. What do I mean by this?

Well there over 20 insures on the market and you have got to ask yourself, do you have the time or patience to ring each individual insurer and repeat your personal circumstances over and over again? I bet the answer is NO right?

Well this is where we come in. We will deal directly with the insurers and find the best possible solution for you!

Some occupations are not the same

Insurers like to have occupation categories and sometimes your job doesn’t fit into their boxes – for instance you work in a mine as a supervisor or a mechanic. When you speak to an insurer, they will give you the same rating as a standard mine worker. The only major difference they take into consideration is if you are underground or above ground. But did you know you can get better rates if you explain your role and duties involved? We just did some insurance for a client who is a mechanic at a mine and doesn’t even set foot on site. 100% of his work is conducted in a shed which allowed him to get cheaper rates.

Ongoing support

An adviser is there to assist with ongoing support for your policy including administration and a regular review of the insurance to see if it still meets your needs when life changes.

Plus, we help at claim time.

What do I do when I receive a payout from my insurance?

You’ve just been paid a lump sum from your insurance and you’re wondering what to do with it? Well, did you know some insurers actually include a financial planning benefit in your policy? What this allows you to do is seek advice and make the right financial decisions for your changed financial situation. However if your policy does not include this benefit, I urge you to seek advice anyway from a qualified professional adviser before making a decision.

How do we get paid?

Generally our clients are happy for us to get paid a commission from the insurance product, but we can also waive the commission and be paid a negotiated fee. All advisers are bound by a strict ethics code called “Best Interest Duty”. This means if the advice is NOT in the best interest of the client, then the adviser is in trouble via a complaints body called AFCA. Advisers are also audited annually. So generally you can be assured any advice you get will place you in a better position.

The cost of getting it wrong

Getting professional advice will give you the clarity, confidence and peace of mind that you’re covered for the right amount and have the correct ownership as well as the right things covered. You often don’t know you’ve done it wrong until it’s too late! And what I mean is when it comes to claim time. You don’t want to be sitting in a hospital bed like my friend wondering how you are going to support your family for the rest of your life.

A qualified Financial Adviser that specializes in insurance is your only choice.

Most advisers offer a NO cost and NO obligation consultation.

Don’t try and arrange your insurance by yourself – at Kelly Wealth, we offer a full personal insurance service and have specialists on hand to help.

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