MYTH 1:
Going direct or “cutting out the middle man” is cheaper!
FACT:
- Absolutely not true – just do a comparison and the proof will be immediately evident. End of myth! But let’s examine this some more.
- The costs and rates for insurances such as: car, household or life insurance are based on risk facts such as age, smoker status, income, health, education etc. these facts determines your premium.
- Direct sales companies do not offer you an advice process or a personal Financial Needs Analysis, thus, should you require a detailed report, in-line with your personal circumstances and actual family needs – you really should get professional advice from a qualified, financial advisor who will meet with you face-to-faceto ensure thay get a thorough understanding of your individual needs.
- By using an accredited advisor to accurately define your needs and explore various options for you, will result in appropriate cover and in many cases lower premiums.
- So is there a place for direct insurers? Yes. But only if you have defined, specific needs for cover and are absolutely 100% certain you won’t require additional advice.
- Just remember – How will you know that you don’t need advice, or the professional opinion of an expert, in order to pinpoint aspects or risks that you may not be aware of.
MYTH 2:
It’s ‘easier’ to do financial planning over the phone!
FACT:
Absolutly not …
One of the main issues with using a direct provider is that you cannot do thorough financial planning over the phone – it will NOT be comprehensive! As a result, you will be unable to address all your combined personal, family and business needs. This type of planning takes hours of research, work and information gathering, and possibly a few meetings before a logical plan emerges. A plan that must be in-line with your specific needs, priorities and affordability. These are only the first few steps in the ‘financial planning process’.
Secondly, it will require regular updates and amendments as your circumstances improve and or change, and this can only be done by building a solid relationship with an advisor that you, firstly, like and secondly can work with on a professional level.
Attempting to do life, business, or personal cover planning over the phone is like trying to do heart surgery over the phone … it just doesn’t work. I’m sure by now you will agree that proper financial planning is more involved and complicated than using a tick box approach.
