Do you remember when banks just took deposits and loaned money. Now they offer a wide range of services, from paying your bills to selling you insurance.

And it’s the last one that concerns me considerably. Not because I don’t believe they shouldn’t do it – diversifying is sensible. My concern centres on claims and long term relationships. Everyone has heard of situations where someone had an insurance policy that they thought covered them for something only to discover at claim time they weren’t.

When you purchase a property and take out a mortgage, a bank will ask if you have personal insurance cover. They need to know that should something happen to you, that they will be able to recover the loan. This is sensible of course, they have a vested interest.

The issue here is, are you getting best advice? Are you getting the best the market can offer? Remember the banks deal with one insurance provider only. How do you know you are getting the best deal? Who do you talk to when you need to make a claim? Who will help you to get your claim processed and paid quickly?”

Arranging insurance cover isn’t a difficult process. Making sure you have the appropriate cover isn’t so easy. If you are not getting great advice, and you accept what is offered without question when you’re in a hurry at the bank, you could be making the worst decision of your financial life if you get it wrong.

So here are some tips when you are considering your insurance situation:

1. Deal with an adviser who has access to multiple insurance providers. One size does not fit all!
2. Make sure you understand what you are buying and why. If you don’t understand the product, have your adviser explain it. Almost as bad as having no cover is not knowing you may have a legitimate claim.
3. Review your policies and update as your family, business and their needs change. This should be done on an annual basis. Policy anniversary time is ideal. Never be afraid to call your adviser for a chat.
4. Consider your insurance as a fixed and nonnegotiable expense in the same way you would your mortgage or car payment. It’s easy to consider personal risk insurance as a luxury rather than a need, when in reality that is definitely not the case.

If you would like to look at your insurance options, give me a call and let’s have a coffee. I will do the shopping around for you and then present you with recommendations appropriate to your individual needs.