Insurance is all about peace of mind but, let’s be honest, insurance is a grudge purchase. It’s a product you loathe buying but when the unforeseen occurs…Best. Buy. Ever.
When it comes to Insurance Reviews most people avoid them with ninja-like skill. “Aren’t they just going to try to sell me something else? No thanks!”
But a review is not primarily about upselling you. It’s about ensuring you are receiving value. Surprised?
Alex Paul from Insurance People tells us more about the difference a recent review made to a couple of her clients…before they spent another
When you first put your insurances in place with your Insurance Advisor, a review is scheduled for you within the next 12 -24 months. The purpose of this review is to make sure your cover is still relevant to your needs.
Insurance policies are not a banks core business so, if you took your policy out via your bank, it is likely no review has been scheduled and initiating the review process is left solely in
A review is important to keep your policies and contact details up to date and to ensure the cover in place is still in line with your needs. Sometimes a review is when you discover a claim could be made on one of
Case Study: Bob and Sue Murray*
*not their real names
I met Bob and Sue Murray at a very exciting time in their lives. Right before Christmas, they had finally managed to purchase a home. This has cleaned them out financially but meant that an insurance review was in order thus their introduction to me.
The first meeting: Needs Anaylsis
We went through the ‘Needs Analysis’ processand, having initially only dealt with Bob over the phone, I finally got to meet Sue. It was great to get to know them better and start building that client-advisor relationship.
The second meeting: Recommendations and a surprise outcome…
The purpose of this meeting was to present my findings on their existing cover and make recommendations to fill in any gaps.
Sue had previously worked for their bank so this is where their policies had been set up and, while I was pleased to see that they had some basic cover in place, their Needs Analysis had revealed considerable room for improvement, so we ran through my recommendations for a more robust and comprehensive policy.
One of the biggest surprises for Sue was that she had about half the amount of life cover that she thought she had and no disability cover. To say she was shocked is an understatement!
What she did have was Trauma Insurance.
Now for those of you who don’t know what Trauma Insurance is, it is a lump sum that is paid out by the insurer if you are diagnosed with one of the conditions outlined in your Schedule. Some policies will even cover your children for the same conditions; whether it is cancer, heart attack or stroke. Believe it or
Who knew? Well, I did… (because I’m an Insurance Advisor and this is why you should have one)
Sue had some basic Trauma Cover in place and part of my recomendation to them was that we increase their protection with a more comprehensive policy that, like their existing policy, would cover the children but at a higher sum.
At this point, Sue turned to me and asked if her existing Trauma Cover would have enabled her to make a claim should
Given that their cover was through the bank, they had never been reminded to review their policies and, were completely unaware that they could have made a claim. Even though it had been three years since diagnosis, I offered to try to secure a retrospective claim for their son under the children’s Trauma Cover.
We completed the forms and sent all the medical information through to the bank insurer. I tried to be careful about raising their hopes as I wasn’t sure a claim would be paid out.
But, just two days later, I received an email with the amazing news that their insurer would pay a claim under the policy and a payment of $20,000 would be made in short order!!!!!!
I was on my way to another meeting when I received the email and dropped what I was doing to call Sue! To hear the amazement and relief in her voice had me crying with her – not only would this windfall help to replenish their family’s savings but it also gave Sue the opportunity to travel overseas to see her sister who had just had a baby!!! A win for them on many levels!
A final word from Alex…
I hope Bob and Sue’s experience highlights the importance of regularly reviewing your insurances policies. A review is about making sure you get the full benefit of what you are paying for and ensuring that the cover you have in place is still in line with your needs.
So much happens in a person life every year that you just don’t know until you sit down to have a cup of tea and that conversation.