Advisers help clients increase success of claims on personal insurances

Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | November 2020

Clients often ask what the difference is between getting a policy though an Adviser or directly from an insurer or phone-sales desk. Recently the governing body (APRA) reported that personal insurance holders with an Adviser are more likely to receive pay-outs than non-advised policyholders.

Below, Table 1, shows that in most cases, Advisers have been able to help their clients through traumatic times and the client has received a better outcome:

Table 1:

Note - DII is Disability Income Insurance; sometimes called Income Protection

The key takeaway for many clients is the important role Advisers play in supporting clients through disability claims like TPD/Income Protection (DII). APRA points to the likelihood that advised clients have clearer expectations regarding what their policies cover, and may also be discouraged from lodging claims that are not covered by their policies. Importantly, not lodging a claim can save unnecessary angst, stress and time, especially at a time when clients should be focusing on their health, or loved ones.

Policyholders considering a review of their existing cover can book a 15-minute phone discussion with an adviser here.

Table 1 source: Life Insurance Claims and Disputes Statistics, APRA, June 2020 (released 20 October 2020)

About the Author

Christopher Hall, AdvDipFP, is the principal financial adviser at Arrow Equities and an Authorised Representative under AFSL 526688. He has completed more than 500 life insurance policy reviews for Australian families, with a specialisation in life risk insurance.

Educational Disclaimer: This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results.

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