Life Insurance – Why Use a Financial Adviser?
What does life insurance cover?
Amongst other things, life insurance can provide cover for death, total and permanent disability, disability income, trauma and accidents. Cover types and terms vary between insurers so care must be taken to assess the suitability of each policy for your circumstances.
Reasons for needing life insurance
At its core, life insurance provides financial security for your loved ones who are financially dependent on you. If the unexpected happens, life insurance can be used to replace lost income, cover living expenses and debts, pay for medical and rehabilitation expenses and to leave an inheritance.
Where can you get life insurance?
You can obtain life insurance directly from a life insurance company, through your superannuation fund or through your financial adviser or broker.
Reasons for using a financial adviser to buy life insurance
A life insurance policy is only useful to the extent it is sized to suit your requirements, is kept up to date when your circumstances change and provides adequate cover when you need it most.
Relevantly:
Unlike a life insurance company which only provides general advice when you acquire the policy, a financial adviser can provide personal advice to help you choose the appropriate cover and adapt it to cater for major life events such as marriage, children and building a new home.
A financial adviser can integrate your life insurance into a broader financial strategy, taking into account insurance that you can access through your superannuation fund and your retirement plan. Those who choose to access life insurance solely through their superannuation fund should note that coverage is more limited and the default level of cover may be inadequate. It is prudent therefore to seek advice and undertake a comprehensive assessment of your overall financial position before you acquire life insurance and to review it regularly to ensure it is adequate.
A financial adviser provides expert guidance throughout the application process, helping you collate the required documentation and ensure they are submitted correctly. They also offer vital support during the claims stage, helping families navigate stressful times and secure timely benefits with confidence.
GENERAL ADVICE WARNING: This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Madison Financial Group Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.
