Kiwis love to DIY, especially when we can save a few bucks. Right now we’re painting our house, and we re-did the kitchen ourselves. As part of that, I learnt how to place tiles, which involved breaking a few! I may have had to pull some out and start again after starting in the wrong corner, but hey DIY disasters are part of the fun. At least when I was getting stuck in, I knew that if it was all a bit too much I could call in a pro to make it right.
Insurance is not well suited to DIY. When a claim is denied or the wrong cover is in place there is no ‘DIY rescue’. There are no re-dos and you can’t just call in an expert to fix up insurance mistakes. It must be right, from the start. If the policy is not right, or the claim won’t be paid, the price is irrelevant. And besides, research by QPR has shown that advised products actually cost less than DIY!
People don’t line up at my door ready to pay for policies having already worked out which ones to buy – they want help navigating the fantastically complex world of insurance options. And they prefer to talk with an adviser that has access to a wide range of options, providers and products.
The cost of insurance keeps rising, the complexity of policies keeps increasing and new ideas and products are continuously being invented. Over the last few years the media has been talking more about insurance than ever before – not just earthquake stuff – life, health, disability, ACC all get air time these days. This makes people worry about whether their claim, if it comes, will be paid.
Last year a major study by Australian Securities and Investments Commission (ASIC) found that that there were higher claims denial rates in relation to insurance policies sold direct to consumers with no financial advice (compared to policies sold through advisers and group insurance policies).*
A good adviser helps you understand what cover you need and helps you put it in place. Their process ensures the required disclosures are made and helps avoid mistakes that could jeopardise your cover. They help find the best-priced, most suitable policy. They help with maintaining and changing your policies over time, and they help with claims when they come. What’s all that worth to you?
When the worst happens, if you’re really sick, disabled, or worse – dead – and you can’t do things yourself, your adviser makes sure your family isn’t left to pick up the pieces and work out what’s going on. We help you get it right, the first time – and that’s priceless.
* ASIC Life insurance claims: An industry review – October 2016