The Role of a Financial Adviser in Buying Life Insurance

How can a reputable financial adviser can help me with my life insurance arrangements?

There are many ways in which a qualified and reputable financial adviser can help you when it comes to your life insurance plan. This includes:

  • Offering valuable advice with regards to the life insurance products best suited to your needs based on the information that you provide
  • Providing access to valuable tools and resources to help you
  • Recommending products and services to suit your needs
  • Helping you to review existing plans and policies to ensure that you are still adequately covered
  • Saving you time when you are trying to sort out life insurance coverage
  • Helping you to avoid potentially costly mistakes
  • Being able to answer questions and provide clarification with regards to life insurance related matters

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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Compare Life insurance quotes from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$1,000,000
64
$100,000
No
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
$2,000,000
74
$100,000
Yes
99
Join Qantas Life Protect and earn up to 150,000 Qantas points. T&CS apply.
$1,500,000
69
$50,000
Yes
99
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
$1,500,000
64
$100,000
No
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
$1,500,000
65
$100,000
Yes
No expiry age as long as premiums are paid
Go into the draw to win (1 of 10) $1,000 eftpos gift cards when you get a quote for Medibank Life Insurance. T’s and C’s apply.
$15,000,000
69
$0
Yes
99
Get a quote for up to $15 million in life insurance cover. Take out a policy before 31 October 2018 and get your first month free. T&C's apply
$1,500,000
69
$0
Yes
99
A simple life insurance product that can offer up to $1,500,000 in a lump sum payment on death or diagnosis of terminal illness.
$1,500,000
65
$3,000
No
80
Protect what matters with a new eligible Virgin Life Insurance policy and you can earn up to 40,000 Velocity Points. Ends 31 October 2018. T&C’s apply.
$1,000,000
65
$100,000
No
No expiry age as long as premiums are paid
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.

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Video: Should I use a life insurance adviser?

'71% less likely' was calculated using figures from ASIC's Report 498: Life Insurance Claims: An Industry Review. The report states that the average declined claims in a non-advised policy is 12% in comparison to an advised policy at 7%. 12% (non-advised) is 1.71 times the amount of 7% (advised) hence a 71% less chance of an advised policy claim being declined.

What does a financial adviser do?

There are many experts these days who offer advice and assistance in a wide range of industries. These experts are the people that many of us turn to when we need help in making a decision about something or when we need clarification about what will best suit our requirements. For example, if you have questions about your health you would naturally turn to a medical expert. If you want to find out more about purchasing a property you might turn to a real estate expert. If you have questions about financial issues you would speak to a financial expert.

A financial adviser is seen as an expert in his or her field, offering advice about all sorts of finance related issues. Some financial advisers tend to specialise in particular types of financial products and services such as life insurance whereas others may cover a broad range of service and products. As most people already know, life insurance is a very important type of coverage that can provide invaluable peace of mind for you and your loved ones as well as vital financial security for your family. It is therefore imperative to make the right choice when it comes to your life insurance plan, which is where a good, reputable and qualified financial adviser may be able to help.

Buying life insurance may seem pretty straightforward but for those who want to make sure that they make the right choice, it can be a confusing and time consuming process. Some people may be unsure as to what to look for, where they can get the right plan for their needs, and what sort of plan to opt for. Using the services of a financial adviser under these circumstances can be invaluable, as these experts can help to ensure that you make the right choice as well as helping you to get a good deal on your cover.

How can reputable financial adviser can help me with my life insurance arrangements?

The role of a financial adviser when it comes to life insurance is to act in your best interests, which means making you aware of all of your options and assessing your situation to provide recommendations on what will work best for you. Of course, it is up to you to determine what you can and cannot afford to spend on life insurance coverage, so you cannot leave everything up to the adviser. What you can do, however, is provide your adviser with key information relating to you, your finances and your circumstances so that he or she can make informed recommendations and offer valuable advice accordingly.

There are many ways in which a qualified and reputable financial adviser can help you when it comes to your life insurance plan. This includes:

  • Offering valuable advice with regards to the life insurance products best suited to your needs based on the information that you provide
  • Providing access to valuable tools and resources to help you
  • Recommending products and services to suit your needs
  • Helping you to review existing plans and policies to ensure that you are still adequately covered
  • Saving you time when you are trying to sort out life insurance coverage
  • Helping you to avoid potentially costly mistakes
  • Being able to answer questions and provide clarification with regards to life insurance related matters

What are some things to think about before speaking to a financial planner/adviser?

It's a good idea to come armed with the following information:

  • What you own. Think of your house, any savings accounts you hold, shares, crypto-currencies and any other investments.
  • What you own. Think of your mortgage, credit card balance and any other loans.
  • How much you earn. Look at any income from your regular job as well as any dividends from your investments.
  • Your regular expenses. How much do you spend per week on living expenses?
  • Insurance that you have and insurance that you need. For instance, you might already have health insurance but don't have life insurance.
  • The status of your will. Check to see if it's up to date

General outline of what occurs when you meet a financial planner

When you find a financial planner who seems to tick all the right boxes, your meeting with them should go something like this:

  • They present their credentials. This should include their Financial Services Guide (FSG) and a Statement of Advice (SOA), which outlines their commission or remuneration.
  • The fact-finding stage. This involves discussing your current financial position and your goals for the future. You should take copies of all relevant documentation with you, including financial statements and details of loans and other debts.
  • The recommended strategy. The planner will then outline the steps you will need to take to reach your financial goals (this may be at your second meeting after they have deliberated more on the matter). According to ASIC law, this must be in the form of a Statement of Advice (SOA).
  • Discussion of recommendations. This may also be at a second meeting, after you have had time to consider their advice and this is the time to ask lots of questions about anything you aren’t clear on or have doubts about.
  • Signing the paperwork. If you decide to go ahead with their plan, you will need to sign all relevant paperwork including any forms involved in the strategy such as insurance or loan applications and super rollover requests.

Reviewing a financial planner: Five things to check

Their registration

If a business provides financial advice, they must hold an AFS licence which is issued and regulated by ASIC. Any financial planner whose services you are considering hiring should have a licence and be on ASIC’s financial advisers register.

If they do not have a licence, don’t use them as they are operating illegally and you will have no legal recourse if the advice they give you is incorrect or misleading.

You should also make sure they are licensed to provide advice on the products you are interested in (i.e. superannuation, insurance etc) and are not restricted to only giving advice on an approved product list.

Their FSG

A financial planner should also have a Financial Services Guide (FSG), which you can usually find on their website or obtain from their offices. Among other things, this tells you the services they offer, their fees, their licence number and any affiliations with other companies they might have.

Their qualifications

Basically, the more qualified a potential financial planner is, the better your chances of getting the right advice. Look for one who has a diploma (at the very least) or ideally a degree in a relevant discipline such as finance or accounting.

They should also be up to date with the latest industry regulations, so as well as having the piece of paper, make sure they are undertaking regular training activities through reputable organisations to ensure their ongoing professional development.

Their experience

Of course, someone can be highly qualified but because they’re fresh out of university, have little or no industry experience. So ideally you should try and find a financial planner who has both qualifications and a number of years’ experience under their belt.

Their fees

Before you agree to be advised by someone and sign any paperwork to that effect, make sure you find out how much their advice will cost you. They should outline their fees upfront and whether they include any service or administration fees and any fees for ongoing reviews of your financial situation. If they do, you should expect to have reasonable access to them when you have questions or wish to discuss a financial issue with them.

Speak to a financial planner today about protecting your assets

However, whilst there are plenty of people who have the confidence and knowledge to purchase life insurance without any help from an expert adviser, there are also many people who are unsure as to their options and which choices to make with regards to this important type of insurance coverage. If you fall into the latter category, then the services of a licensed, accredited and reputable financial planner could be ideal for you. Using a financial adviser can take a lot of the stress and worry out of choosing life insurance coverage if you are not really familiar with this type of insurance. It can also help to provide valuable peace of mind and can help you to avoid potentially costly mistakes and even scams, which have become rife within the insurance industry as a whole.

Speak with an adviser and find the right life cover

Richard Laycock

Richard is the Insurance Editor at finder, and has been wrangling insurance Product Disclosure Statements for the last 4 years. When he’s not helping Aussies make sense of the fine print, he can be found testing the quality of Aperol Spritzes in his new found home of New York. Richard studied Journalism at Macquarie University and The Missouri School of Journalism, and has a Tier 1 certification in General Advice for Life Insurance. He has also been published in CSO Australia and Dynamic Business.

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