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    Insurance is a safety net for when life takes an unexpected turn. And in today’s digital age, buying insurance online might seem like a convenient and cost-effective solution. However, doing so can leave you vulnerable when you need protection the most.

    When it comes to insurance, beware the promise of simplicity. Insurance is complex, and having an experienced insurance advisor on your team will cost you no more than buying online. In fact, it may well be cheaper and when you need us most, we’ll be there.

    Insurance options galore

    Buying insurance online can seem like a quick and easy solution. Yet, this convenience can come at a cost. There are so many options and without proper advice, and being asked the right questions, you could be running risks that may cost you dearly.

    Limited ongoing policy servicing and claim support

    One huge disadvantage of buying insurance online is the lack of ongoing policy servicing and claim support. The true test of insurance comes at claim time. When you’re in trouble, you need an ally. An insurance advisor provides continuous support, guiding you through the labyrinth of policy details and claims processes.
    Consider a real-life example:
    A client of ours at Global Finance had purchased a medical policy online. They were unaware they were entitled to a claim benefit for public hospitalisation from a past medical event. This is a provision that provides coverage for costs associated with staying in a public hospital. Generally private medical cover is for treatment in private hospitals but sometimes clients can end up in the public system. Depending on your policy, you can receive up to $300 each night when admitted to a public hospital in New Zealand for three or more consecutive nights. Without advisor support, this benefit went unnoticed. When our team reviewed the policy, we identified the eligible claim and secured a $1500 payout for the client.

    Risk of medical non-disclosure

    Online applications often lack the thoroughness needed to capture your complete medical history. This can lead to unintentional non-disclosure, where crucial information is omitted, or forgotten, thereby putting any claims at risk. Insurance companies scrutinise claims meticulously, and any discrepancy in your medical history can be grounds for rejection.

    A thorough application process might seem tedious, but it’s essential. Our advisors will go through the application form with you, explaining what insurance companies need to know and why. They will ask about your medical background, ensuring every detail is disclosed. Without an advisor to guide you through the process, you might overlook details, resulting in denied claims just when you need the cover most.

    Losing out on product features and coverage benefits

    To know if you’re getting a good deal, you need to be able to compare apples with apples. Insurance advisors can help you understand the options and the benefits of, for example, locking in a level term plan to provide financial security for a set period or opting for hybrid trauma insurance to cover both critical illnesses and provide a death benefit. This tailored approach ensures you have the right mix of coverage and comprehensive protection. Without their guidance, you might miss out on valuable benefits.

    Consider a real-life example:
    We have had clients come to us who were unaware of how a medical insurance policy with add-on specialist and test benefits actually works. These add-ons give you access to specialist consultations and necessary diagnostic tests, such as MRIs, CT scans, and X-rays, the cost of which can be prohibitive unless you have proper coverage. Key aspects of a comprehensive insurance policy, our insurance advisors will ensure you understand how these benefits integrate with your policy. They can help you make truly informed decisions about your insurance cover.

    Understanding exclusions and technicalities

    The world of insurance is full of technical terms and seemingly never-ending detail. Trying to get your head around these complexities can be overwhelming. If you buy online, you miss out on the chance to ask questions, to understand the nuances. Insurance advisors make sure you’re not just buying insurance but understanding it.

    Our advisors demystify the implications of each coverage choice and the technicalities of such as buy backs, where you can restore or ‘buy back’ a portion of your coverage after a claim has been made and paid out; medical excess selection, how much you pay out of pocket before your insurance steps in; and the difference between standalone or accelerated products and how they can affect a claim. As it applies to trauma insurance, standalone cover is independent of any other benefits and a claim has no impact on your policy. Accelerated trauma cover, however, is attached to your life insurance policy, and any claim your life cover will reduce a trauma claim amount. Both policies have their place, advantages and disadvantages.

    Insurance advisors provide clarity on insurance details, helping you make decisions that suit both your financial health and future needs.

    Limited ongoing policy review process

    Life is dynamic, and so are your insurance needs. Insurance isn’t something you buy once and forget. A policy that suits you today might not be adequate tomorrow. Regular policy reviews are essential. But if you buy online, who will remind you? Who will review your policy to make sure it still fits? Online policies often leave owners with outdated coverage.

    Our advisors conduct regular reviews of your policy, adjusting coverage as necessary to keep pace with your life. This proactive approach ensures you remain well-protected, even as your circumstances change.

    The old apples with apples thing

    Comparing insurance policies can be like comparing apples to oranges. A policy that appears cheaper online might not offer the same comprehensive coverage as one recommended by an advisor.

    A knowledgeable insurance broker can save you a massive amount of time as you won’t have to individually compare each policy; they will have already done that. They provide objective advice, compare quotes from top insurance companies and find the best deal to suit your lifestyle and budget.

    They will ensure you understand the true value of each option. They clarify the details, so you know exactly what you’re covered for and how. This expertise ensures you’re not caught out by hidden exclusions or insufficient coverage.

    Getting insurance sorted quickly

    The promise of quick, simple online insurance can be compelling, but it often sacrifices thoroughness. A rushed application increases the risk of non-disclosure and inadequate coverage. What seems like a time-saver now can lead to complications and claim denials later.

    Online policies often lack personal support, leaving you to manage the claims process alone. In contrast, our advisors stand by your side, advocating for you during the claims process. Their industry knowledge and experience ensure your claims are handled promptly and fairly.

    There’s more to it than just saving time and money

    While cost and convenience are important, they shouldn’t be the sole factors in your decision. Insurance is about having the right coverage when disaster strikes. It’s about peace of mind. Many buy insurance online, lured by the promise of lower premiums. They don’t see the gaps until they need to use the policy. Then, it’s too late.

    It all comes back to the adage “caveat emptor”, “let the buyer beware”. Without an experienced advisor, you might miss out on significant benefits, or worse, get stung by your online insurance policy.

    Next steps

    The support of an insurance advisor can make all the difference. If you want to find out about the different options available for your personal risk insurance policies, talk to an experienced insurance adviser at Global Finance. Call 09 255 5500

    The information and articles published are true to the best of the Global Finance Services Ltd knowledge. Since the information provided in this blog is of general nature and is not intended to be personalized financial advice. We encourage you to seek Financial advice which is personalized depending on your needs, goals, and circumstances before making any financial decision. No person or persons who rely directly or indirectly upon information contained in this article may hold Global Financial Services Ltd or its employees liable.