Risk advisers worth the cost
Irrespective of the future of commissions-based remuneration of planners in the life/risk sector they deserve to be sufficiently paid for the service they provide.
That is the analysis of the founder of Elixir Consulting, Sue Viskovic, who has published an analysis detailing the value that planners and advisers can bring to the clients in the life/risk equation, particularly with respect to underwriting at the time of application and assisting clients at the time of claim.
"The benefits of underwriting at the time of application rather than the time of claim cannot be downplayed," Viskovic wrote. "Most advisers will facilitate this process when lodging applications, effectively obtaining discounts for good health. The great advisers will set their clients' expectations about what is likely to be an arduous process, and then they (or their staff) walk each client through that process of completing forms, booking medicals, chasing up medical reports, organising blood tests, liaising with underwriters and so forth."
"In many cases, were it not for the adviser, the client would likely either not start the process, or give up part way through. It is well worth it in the end though…to obtain the reassurance that not only are they insured, but the money they are spending on premiums is money well spent; and if they ever need to make a claim, it would be unusual that they would be denied by the insurer."
Referring to direct insurance options pursued by many consumers, Viskovic said the same could not be said "for those who answer a few questions and get their insurance cover from a direct provider". "They will be shocked to learn that the underwriting process is done at the time of the claim, and the odds are much higher that they will have their claim knocked back — discovering too late, that all the money they have been paying on expensive insurance premiums for years has been a complete waste," she said.
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