It talks about what Global Financial Services (GFS) has been asking customers for more than 16 years. I am providing 3 tips that I feel are most critical and will help you avoid the biggest mistakes - not just while buying life and personal risk insurance but also for maintaining it.
Life insurance, Critical illness and trauma insurance, total and partial disability cover, health insurance or medical insurance and income protection insurance are some of the most popular types of personal risk insurance. Different companies have different products but the underlying principles remain the same.
Hence, irrespective of if you are buying insurance or if even if you bought years back - following are 3 tips you must keep in mind:
1. Ensure that the insurance cover is sufficient
Personal risk & not just life insurance is very important to protect your family home and family from the mortgage in unforeseen circumstances. The insurance cover should be sufficient to cover your mortgage in addition to your family’s other requirements. For e.g. if your life insurance is of $200K but mortgage of $500K, it may not be sufficient in such circumstances.
2. Review your insurance policy every year
I can hear a clear echo of our voice when the NZ Herald article says that, "Your circumstances can change and insurance policies evolve". It repeats what GFS tells all its customers and even posted on its facebook page last month.
Adding to this, in my experience many times customers don't even realize that they may be eligible for a claim against their insurance policies, obviously other than life insurance. This is another important reason for a review.
We have assisted people who were not even our customers to get claims for events they never thought might be covered in their existing policies.
3. Look at terms of the policy and reputation for claims - not just price
Don't buy just on price - look at other terms and conditions, customer service and reputation at claim time.
Almost every month we come across families who had bought insurance from a friend many years back. 15 – 20 years later when they need a claim, they find that their friend stopped working as an insurance adviser many years back. You can read of such cases on our facebook page as well. GFS has assisted not only our insurance customers but also mortgage customers get their claim even if they took insurance from someone else.
Whenever you take insurance, think about who can help you at the time of claim - many years from now... not just the best deal you are getting today.
If it has been more than a year since you reviewed your life and personal risk insurance policy, click here to book an appointment.
Director, Global Financial Services Ltd. (Auckland)