It’s an interesting subject… Many of us have been told we should have this but do we really need it? What are the benefits and why is this such an important part of our financial & family planning?
I recently sat down with Suresh Chaturvedi (Head – Life Insurance at InsuranceMarket.ae) to discuss this subject in more detail.
Suresh is a man of experience when it comes to Life Insurance, he is confident about the subject and the importance of this product, yet he is not pushy. The concern with many advisors in this field is that they are in it for themselves, or the commission. In this instance I see someone who is there to help, advise and support clients so they can correctly protect the financial futures of themselves and their family.
Question : That always seem to come up are, who actually needs life insurance? Is this for everyone, is it only for those with children, should you have cover if you are not even married…
Suresh : “life insurance is for everybody. It’s not for a select few people. It’s for everybody, people who have dependents, who don’t have dependents, right. Life insurance would always help people not to become dependent on somebody.So yes, everybody should have life insurance.”
Question : Having a family myself including a four year old daughter, I have a reason to invest in such a policy. However, there are clear reasons why even without having children, you should carefully consider a Life Insurance policy and the sooner the better, perhaps even well before any children are even around to give you that extra little push.
Suresh : The answer is that you don’t have any children at this point of time, but the situation can change in the future. So yes, you would have children. You would have a family, you would have people who are still financially dependent on you, right? If today you don’t have children, you might have your parents or somebody who’s your siblings, probably somebody who’s dependent on you financially, therefore to secure their financial future you need life insurance.
Question : One of the key takeaways for me from this interview and the fact I have recently been through the process of getting a new life insurance policy, was that there is a high degree of flexibility available to those who are interested in, if nothing else, getting started. The budget can in most cases be taken into account, there are different options when it comes to the term, amount of cover and of course provider. This is also a key benefit of using an insurance broker as you will be provided with choice rather than one option and from there will also be given support throughout your policy, providing additional service which you may not necessarily get when going direct to one of the big providers, so much so that some will not actually issue policies unless you are using a broker.
Suresh : Well Lee, a broker plays a very prominent role in the whole process. Now, for example, let’s say you approach a particular provider, okay for life insurance, that particular provider can only offer products that it has on it’s own shelves. Now and again this product might not suit the client’s requirement. So, what a broker could do is they could get you various options as they do not represent a provider or products from a particular provider. A broker represents the client and the needs of the client in front of the insurance. A broker can pretty much get you what suits your needs and that is one of the biggest advantages of having a broker. Secondly is that insurers themselves do not sell directly in the market..
The expertise, experience and advice to be gained from a good insurance broker is invaluable, not only can it save a lot of time but it can be the difference in large amounts of money if/when the policy is ever cashed. There are many, many options available in the market, it’s a confusing subject that can cost you, or your family, dearly if the right selection is not made, further enhancing the importance of seeking the right advice, from the right person, who has the right focus when it comes to this.
It should be about helping clients to protect themselves and their families and that is why you really should consider a Life Insurance plan.