Our latest riskinfo poll asks advisers whether they are ‘walking the talk’ when it comes to their own life insurance cover. This issue can equally apply to all others working within the life insurance industry, whether they work with dealer groups, the life companies, research houses or other service groups.
Our question is:
Do you have appropriate levels of risk insurance cover in place for you and your family?
While terms such as ‘the insurance gap’ and ‘underinsurance’ continue to loom larger in the minds of the broader community through public awareness campaigns such as IFSA’s Lifewise initiative, advisers themselves are putting the question to their colleagues about whether they have their own house in order as they discuss insurance needs with their clients.
One comment recently received by riskinfo from well-known adviser and industry contributor, Barry Sheales, questioned how many advisers in the market today were under-insured:
“If you do not own the product, how can you possibly recommend it to others.”
“A good indicator of the adviser’s ability to sell risk insurance is to have his own risk program reviewed. You may be very surprised at how under-insured many advisers are.”
Mr Sheales’ point relates to the issue of credibility, as he concluded:
“If you do not own the product, how can you possibly recommend it to others.”
Melbourne-based adviser, Paul Underwood, also makes comments along the same lines:
“Many people in this industry do not practice what they preach. It is well accepted that when you believe in what you do that this conviction and belief will be imparted to your clients and they will tend to be more receptive to your recommendations,” said Mr Underwood, who added:
“… many times I have asked people in the industry (Business Development Managers, Financial Planners and Life Agents) what insurance cover or level of cover they have and it never ceases to amaze me how many of them do not practice what they preach.”
Where family circumstances apply, advisers may also question whether they hold sufficient cover not just for themselves and their partner, but also for their children.
So, it’s over to you – and please answer honestly! Are financial advisers like the plumber who never fixes the leaking tap in their own house? Or do most financial advisers actually walk the talk when it comes to life insurance?
My husband was passionate about Life Insurance but when he had a stroke the cover he had was totally inadequate, he also had no Trauma cover.
Consequently I suffered twice, once the upset of seeing my partner in such a state and second the ongoing financial situation we were and still are in.
I did ask and try to confirm what covers etc were in place unfortunatly he was from the old school and he said I did not need to worry i would be fine!
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