Imagine you’ve fallen sick & after giving yourself some rest for perhaps a day or two and popping in a few OTC pills, thinking you’re going to recover on your own, what is it that you do when you fail to convalesce?
Well isn’t the answer obvious, you see a doctor? You see a doctor because you’re not a doctor yourself. It’s not your field of expertise & you wouldn’t ideally want to experiment with your health trying to diagnose your condition & then possibly ingesting just about anything you feel would help you cure.
Then WHY would you want to experiment with possibly the most important thing after your health i.e. the financial security of your loved ones. Some would in fact argue that that’s even more important as compared to their own life.
But when it comes to Life Insurance we tend to play the expert here by doing things online these days, isn’t it? Think again!! One wrong move & all that money you’d have paid all your life is gone down the drain. There’s a very good reason why we have financial advisers around else all of us would’ve done it ourselves. The reason is, we as laymen don’t understand how it all works & believe it or not we don’t even know what type of cover would best suit our circumstances or if the price we see on the comparison site is definitely the best price for that product. The fact is there’re so many different permutations & combinations when it comes to life insurance products & for the price that we’re prepared to pay, it’s a financial adviser’s job to find us the most suitable product within that budget. The best part is we don’t even need to pay them for the service.
The next question is, is there a standard operation procedure (SOP) for all financial advisers across the board to ensure the advice we’re getting from any financial adviser is going to be the best advice for us? The answer is somewhere between a simple Yes & No. They all have to follow the guidelines laid down by the sole regulating body i.e. the FCA but that said, they all have the freedom of choice between different products to choose from & because everyone has a different outlook in life similarly every adviser has a different opinion on any given situation.
Adviser A. might think a policy till age 65 is fine for you but adviser B. might not agree, he might recommend a longer term product to you which according to him is a better product. But remember it’s better only in his eyes & although both the products may be suitable to your circumstances but eventually it’s for you to decide which one you think would be a better option for you. The adviser’s job would be to make sure the policy has been done correctly & also to ensure he’s run you through all the different options available in the market. The perfect adviser should however discuss with you the pros & cons of all, without confusing you.
So the next time you’re in the market, scouting for the best insurance adviser, be sure to ask him/ her what product would they buy if they were in your shoes instead of just recommending any product to you.