Why comparing insurance products can be like comparing apples with oranges (or an Apache Helicopter)
The devil is in the detail.
There is no ‘standard’ insurance product and no two insurance products are identical so as a consumer, trying to compare them can feel a bit like comparing apples with….well…. an apache helicopter. Neither one of them are similar so why try to compare them? The answer is….you have to. When considering insurance products not only do you need to consider price and value of insurance, you need to consider waiting periods on pre-existing conditions, definitions of pre-existing conditions, definitions on what constitutes an insurance trigger event and the list goes on.
There are research houses that will compare all these features of insurance products for you and then rate them helping you somewhat. This can be very useful but how they rank may not suit your individual needs. For example, just say you had a bad back. You may compare two funds which both have a clause not allowing you to claim for pre-existing injuries. One insurer’s definition of pre-existing may include your bad back, the other insurer’s definition may not. A general rating of insurance companies will not be able to tell you this and may not place emphasis on it in its rating system.
This is where a Financial Planner can add value to your insurance needs
A Financial Planner deals with these companies on a daily basis, they know their tricks and they know what is important. A Financial Planner can add substantial value in ensuring that you don’t receive a shock at time of claim. In addition, a Financial Planner should assist you with your claim should you need to make one and ensure the process runs smoothly, a valuable service particularly in time of need.
Just think about it, if insurance companies were always happy to pay claims do you think there would be so many lawyer’s ads on TV?
What about you, have you had any positive or negative experiences with insurance companies?
– This post is from Ben Brett. Check out our details in our about us page.