Educate clients to grow your business

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“We know from our polling that some people will not let their insurance drop for their car or even their phone, but when people are not having life insurance due to home budget pressure or because of a lack of understanding then we know the life industry has a responsibility to help educate people on the risks they face and benefits of life protection.

“The great irony is that times of reduced confidence in job and financial security are the times when people need life insurance protection the most.”

Minto concluded that the results revealed just how much more the industry needs to do to educate people on the unique benefits of life insurance and how it differs from other forms of insurance and social supports. 

“It isn’t just for people with dependents or those who think that, because they have assets such as a home, that their family will not need financial assistance should they be no longer able to work through illness or death. Men also need to think more about the financial risks to their families and dependents from them being unwell. It is not enough just to think it will never happen.”

Women appeared more knowledgeable in the poll, with only 6% believing that their plans for a long and healthy life reduced the need for life insurance (15% for men). Men were also more likely than women to think that their health insurance would give them the same benefits as a life policy (19% vs. 14%).

 “Perhaps surprisingly, younger generations seem to understand the role of life cover more than older people, but those without cover display a greater misunderstanding about the need for personal insurance than their older generations,” Minto said.

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  • Innocent Observer on 15/05/2013 3:15:20 PM

    I think my point was missed. Mushroom was talking about life insurance. For some people there is not the need. When we discuss insurance with our clients we start with the need, then work back from there. If there is a gap to be filled, usually insurance is the cheapest way to plug it. Insurance is a risk management tool (nothing more, nothing less). We don't go out with the intention on claiming. And when we do have claims we refer back to our recommendations and use it for what it's intended for

  • Brett on 15/05/2013 12:13:32 PM

    ...a terminal illness benefit allows you to have options while still alive.

  • Brett on 15/05/2013 12:12:19 PM

    Mushroom, what if you can't work because of illness or injury? Are you happy trying to qualify for Centrelink's disability support pension and live on this alone to still "live" the lifestyle you want? How will you pay for any mortgage you might have? How will you pay rent and still save for holidays and going out (let's face it, just because your health or injury stops you from working doesn't mean you don't want to still enjoy your helps with this!)

  • Angelo on 15/05/2013 10:34:21 AM

    Almost 1 in 5 think Health Insurance is the same as Life Insurance! Madness!

  • Rod on 15/05/2013 10:02:39 AM

    It is simple , " To have it when you want it , you have to Buy it when you dont" Fact is people do not que up to buy life insurance, it has to be sold , It wont happen to me is also part of the problem, but the fact of life is it does. Once again we deal with all of the compliance because you have advised someone to purchase a couple of million dollars of life cover and then generate 50x pages of paper to justify why ,,

  • Jeff M on 14/05/2013 2:01:13 PM

    Basically its like this, if I complete and will or take out life insurance it means I am admitting I may die one day and thats a thing I do not want to think about. I sold Insurance for a few years the the above is more the reality so how do you get them past acknowledging the fact yes you may die so you had better protect the innocent in your life, before you do.

  • Grant on 14/05/2013 12:27:20 PM

    Innocent Observer, you have missed Rob's point. There is never a better time to buy Life Insurance than now. If the "need" is 10 years down the track, you can't gaurantee that youyr health at that time will allow you to buy Insurance when you want it.Lock in level premium when you are young and Healthy, and obtain a policy that will automatically allow you to increase cover on certain events like marriage, birth of Children etc. You then have the best of both worlds, locked in cheaper rates and gauranteed insurability.

  • Innocent Observer on 14/05/2013 10:55:05 AM

    Rob, Mushroom makes a very valid point.

    Sure, everyone's circumstances change along the way (marriage, kids etc), but until then there is not necessarily the "need" for insurance. For most families marriage & kids are planned events, so there's plenty of time to get everything order.

    At the end of the day it comes down to whether the insurance is there for a (quantifiable) need, or for some other warm & fuzzy feeling. There's not always the need.

    (Also for the dude in Mushroom's example set his cover up through super, then chances are the ATO would have first dig at it)

  • Rob Coulson on 14/05/2013 10:23:11 AM

    Simple, because within a short period of time you may become married and have kids. If you do not get Life Insurance whilst you are young and healthy, by the time you do realise you require it you may be uninsurable. Insurance is also quite inexpensive whilst you are young. I bet you insure your house and your car and don't give it a thought. Your most valuable asset is your ability to earn an Income!!! You should consider purchasing Income Protection and give consideration to some life cover. You can get your life cover through your Super to make it Tax deductible.

  • mushroom on 14/05/2013 9:25:25 AM

    So why does a single person with no dependents need life insurance?

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