What’s wrong with the current insurance advice system?

You would be right in thinking that insurance brokers and financial services businesses have been offering personal insurance services since day dot. But did you know 99% of insurance advisers are remunerated via commissions paid by the insurances companies? While there are many ethical providers out there, when payment comes via a third party and not the client themselves, the door is left open for the client to question whether the insurance policy they’re provided with is the policy in their best interest.

Furthermore, when commissions are received and directly linked to the total sum of insurance, again, the client could be left questioning if the total sum of insurance is in their best interest.

Why are we different?

As with all Hewison Private Wealth services, our insurance offering will be provided on a fee for service basis. In plain English, we will either rebate the upfront and ongoing commissions offered by the policy provider or reduce the client’s insurance premium accordingly. We will then charge a flat annual fee to our clients, agreed by them, up front. More importantly, we will detail what is being provided for the fee charged. Plain and simple.

Why is personal insurance so important?

We are all very quick to insure our cars and homes/contents, yet your biggest asset in life is YOU. And better still, unlike many insurable possessions in life, you are what we call in investment land, an ‘appreciating asset’.

Monetary speaking, its expected that as we grow in knowledge and experience our ability to earn income will grow too. Not only are we an asset to ourselves but as we marry and have children, we become an asset to our families as well. They rely on us to provide for them until they can provide for themselves.

Insurances such as income protection, trauma, life and total & permanent disability (TPD) allow individuals, particularly younger and middle aged people, to safeguard themselves and their families against the unknown and unthinkable events that might threaten to derail all that they have worked for – safety and security for themselves and their loved ones.

Of course, it’s human nature to assume that you are somewhat bullet proof or to take a ‘she’ll be right’ attitude. This is particularly true of younger people who may not have suffered a serious health event… yet.

I’m reminded of a recent Facebook post showing a link to a Go Fund Me account for a 37-year-old male who I went to school with. A loving husband and father of two under five who’d suffered a stroke after a swim in the ocean. Based on the post, I assume that this man either had no personal insurance, or not enough, to cover such an unforeseen event. The insurance he would have required would be relatively inexpensive for a young and seemingly healthy man.

Of course no one ever believes it will happen to them – but I say, why take the risk?

What can you do?

Are you confident you have the right personal insurance and risk strategy in place? Some people don’t have adequate coverage while others are arguably over insured. Hewison Private Wealth can provide you with completely unbiased personal insurance advice. Ask us how we can help you.

On the evening of 21 March Hewison Private Wealth are hosting a Wealth Creation Forum at the Westin Hotel on Swanston Street. Learn about strategies you could be putting in place now to secure your financial well being in the future. One of the topics covered will be wealth protection and insurance. If you – or someone you know – would like to attend, please contact us.