The bad news was that my dishwasher broke down the other day. The motor went.
The good news was that general insurance covers motor failure in fridges and dishwashers and the like.
The really bad news was that my policy did not cover motor breakdown.
The good news is that now I know, and now it does.
I’m not covered this time, but next time I will be and I’ve now learned that reading my insurance policy is a good idea.
But it’s not just about reading the policy, it’s about knowing what to look for and what the small print might include.
And that’s where, in this new environment of advisers proving their value proposition, that little tips even on things like general insurance – which advisers are unlikely to sell – can prove valuable to clients.
For life insurance, which you of course are more likely to sell, there are plenty of ways in which you can prove value. Often it won’t be appreciated until claim time, but you can explain to clients what their lives would look like without insurance.
How would a couple bring up two children if one of the couple was no longer there, working or taking care of them? If the non-working partner was no longer there could the working partner continue to work? Would they need a break before working again? In some ways would it be more difficult if one partner became severely disabled.
It’s difficult sometimes for clients to see past the potential accident or illness or death to the life beyond that. This is where you, as an adviser, can truly enlighten them.
Don’t feel that it’s obvious. Don’t feel that the small print – does not need explaining and the consequences of all the insurance options are not detailed.
Once you have really enlightened a client, I would find it difficult to imagine that clients would choose not to be insured.
And beyond proving your value to the client, you are securing a revenue stream which will hopefully diversify your business. Even in a fee for service environment, the insurance piece will win you clients even when they’re not looking to invest.
