Confidence in Insurance Climbs With Advice

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A recent Million Dollar Round Table (MDRT) survey of consumers in the United States has identified similar findings to Australian surveys when it comes to the attitudes of consumers who have never utilised the services of a financial adviser.

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Click for a full size version of MDRT Survey Infographic

The survey found that US consumers who have never used a financial adviser feel less confident about complex financial matters, including life insurance, and are less prepared than those who have engaged with an adviser.

The online survey of 2200 American adults aged 18 and over found levels of confidence in life insurance matters were higher across the board for those who had used an adviser as were the amount of people who had taken up life insurance.

According to the survey, 63% of people who hired an adviser had life insurance compared to 46% who had not taken professional advice while 62% of advised respondents were confident about their life insurance compared to 51% of those who had received advice. This pattern was repeated for disability insurance (42% compared with 35%) and long term care insurance (41% compared with 31%).

“Consider working with an advisor like hiring a professional builder to renovate your home. While you may be able to paint the walls on your own, your overall knowledge wouldn’t enable you to replace your pipes or build new cabinets in your kitchen,” Hanna said. Hence you should always engage experts in whatever field you not competent in. In this case https://www.brushworkpainters.com/gettysburg-pa/ can help with with painting job and a good financial adviser will help you with your finances.

The survey, which featured around 500 people who had used an adviser and 1700 who had not, also found that 79% of respondents had never engaged a financial adviser, echoing similar numbers of engagement as those found in the Australian market.

Of that number, 38% of the MDRT survey respondents stated they were able to manage their own finances while 36% believed it would cost too much money.

MDRT President Mark J. Hanna said the survey results indicated that while some people felt confident with financial matters the proportion of those in that category declined when it came to more complex areas of life insurance.

 

The MDRT will hold its 2017 Annual Meeting in Orlando, Florida in June, with more than 12,000 advisers expected to attend from around the world, including a contingent from Australia.

View MDRT’s full study results to learn why consumer confidence in financial planning is key.



1 COMMENT

  1. If someone guide’s you, don’t you always feel more confident ?? I think we all realise this but it seems to take unprecedented steps in some million dollar survey to recognised the obvious.!!
    This should ring a bell of caution to those who seek online cover without advice or any form of needs analysis/ But it does not ! on too many occasions it comes down to disappointment anger and all those other human traits when a claim is declined.
    We cannot always blame the online insurers for peoples neglectful approach to ask why is this so cheap or that was easy { wait til claim time !} but to save these people from themselves and the ever increasing weight being placed on the health system much of it stemming from bad or in correct advise. To do this the application system for all insurers and there advisors has to become standard ADVICE MUST BE GIVEN AFTER THE NEEDS ARE CORRECTLY ASSESSED. Only then with proper underwriting will the belief that obtaining advice is invaluable will be realised at its full potential

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