You may feel that discussing your insurance needs with a professional financial planner will be of benefit to you.
A professional financial planner will be able to look at your entire financial situation, your family commitments and lifestyle and help you determine you actual life insurance needs. They will also be able to help you shop around for the most appropriate insurance product for your particular needs.
Research conducted by the Investment and Financial Services Association in 2005 showed that those that had a professional financial planner were most likely to have adequate levels of insurance cover.
In exchange for an adviser service fee, which for insurance is often paid by the insurance company via a commission, a professional financial planner will be able to:
- Help you with your application – they can explain some of the more complex terms, help arrange your paperwork, ensure you have met all of your obligations and potentially get a better deal
- Maintain your insurance – they can keep an eye out for changes in the market and recommend new products when available
- Help you through a claim – in the unfortunate event of a claim, your planner will help you or your surviving family through the process.
- It’s also important to note that some financial planners rebate some or all of the payments they receive from the insurance company.
Top tips for speaking to a professional financial planner.
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- Speak to your family and friends to find out if they have a financial adviser they could recommend. It’s important to build a relationship with someone you trust and it may help to know that they’re trusted by people you know.
- Ensure that the planner you see is licensed by ASIC. By law any person or company that provides personal financial advice is required to have an Australian Financial Services Licence (AFSL) issued by ASIC or be an authorised representative of a licensee.
- Find out how long the planner has been practicing and what they specialise in. If you’re looking for advice on life insurance you may want to speak to someone that has experience and specialises in this area.
- Remember to ask for the planners’ Financial Service Guide (FSG). This will explain the nature of the service being offered, the fees and commissions charged and how they will deal with complaints. A financial planner is required by law to give a FSG before providing any financial advice and it’s important that you’re comfortable with the contents of this document before you proceed.
- Be prepared, you’ll need to provide all relevent information about your income, debts, assets, your family circumstances and your future financial expectations.
Finding a professional financial planner;
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For more information on professional financial planners or to find a planner near you, please contact: