Getting the right cover is as important as having the insurance itself. There are many people who believe that going directly to an insurer for life insurance will get them the best policy at the best price/rate. This is where the consumers get the raw end of the deal because of a major flaw in the system:
ASIC which stands for the Australian Securities and Investments Commission is the entity which controls, manages and regulates the insurance and investment industries. ASIC does not require insurers to present a plan or comparison report when recommending a product to the consumer.
This allows the insurer to provide a product(s) direct to the consumer without the client really knowing how the policy compares to other available policies in the market place > in terms of core policy conditions, overall ratings, claims ratios, customer service and support and of course price/rates.
On the other hand ASIC who also controls and regulates the financial planning industry actually requires financial planners and advisers to present a plan detailing the recommendations based on the client’s objectives, needs and financial position and why those recommendations fit with the client’s objectives. This is the pure difference.
Picking the right adviser to guide you through the process is as important as picking the right policy – BUT – cutting out the middleman (a good adviser) is really cutting yourself short.