You know whenever we are “purchasing” something we always want to feel assured that we are getting value for our hard earned money. No matter what it is, no one ever wants to feel like they have been “sold” instead they wish to feel that they have purchased or acquired something of value.
Well an insurance policy is no different, yet many companies “sell” policy features based on how low the cost is and worse still, on not having to “do any medicals”. We have all seen those TV commercials that emphasize these supposed advantages to purchasing a policy through them as opposed via an authorised and accredited expert such as a financial adviser. Even some poor quality advisers still operate the “TV” way too unfortunately.
In obtaining a “cheap” policy the “easy way”, that is to not be medically and financially assessed, one is guaranteed (almost) to go through incredible hurdles come claim time. Ultimately isn’t that where your interests lie in having a policy? I’d much rather pay more, knowing that all medical history has been disclosed so that come claim time, the acceptance of my claim is far higher. As one financial adviser once said to me, if the hurdle isn’t at the beginning of the process, it will certainly be at the end (i.e. the claim request). The last thing any person wishes to experience is to persistently prove that they are entitled to their claim benefit during assessment. The trauma that a client often experiences that gives rise to a claim (death of a loved one, severe personal injury or illness etc.) is more than enough to deal and cope with let alone going through the arduous process of a claim.
In addition, it also pays to have a more expensive policy analogous to the additional benefits you would be entitled to. An additional cost to waive a premium, or obtain a nursing benefit whilst being hospitalised is a nice bonus to have when required. Ultimately you do get what you pay for…Now don’t get me wrong, I am not advising you to take these options, they are purely quoted for example purposes.
So in summary, don’t be motivated by cost alone when selecting or weighing your policy options. Seek advice from the experts (not an actor on TV) when you compare and research what is available to your circumstances, that is what your financial adviser is there for!
For an appointment with a qualified Wealth adviser, contact us.
Written by Maria Yankos – Practice Manager, Odyssey Financial Management