These days on TV it seems to me that every second or third commercial is either a sports betting advertisement or a direct insurance advertisement. Usually you’ll see a lot of direct selling during daytime TV programs.

offer a word of warning if you’re thinking of purchasing insurance directly this way. I understand that it may seem an easier process, that it can all be done over the phone and that you don’t need to see a financial planner. But…

Here are a few reasons for using a financial planner and not going direct:

1. There are subtle differences between insurance products. For example, with income protection – you want to endeavour to lock in an ‘agreed’ benefit contract. This means you not only want to make sure that you are medically but also financially underwritten at application stage to secure ‘agreed’ income protection benefits.

2. Many of the direct life insurance policies have many exclusions because the less underwriting that gets done, the more exclusions there need to be on the product to keep the risk pool the same. Will you be covered for everything you think you’re covered for? Will you get the money when you need it? Who will help you at claim time?

3. One size does not fit all. Given the myriad of products out there, it is your financial planner who will recommend a product that is suitable for you and in your best interests. And certainly at claim time it’s your planner who can provide valuable support and assistance to you.



About Peter Ziggy