Clarity is important when approaching insurance cover

Jonathan Faurie, FAnews Online Journalist

The internet is playing an important role in South African society and is being used as an educational tool which is making the man on the street very savvy when it comes to his insurance needs.

This becomes important when one considers that purchasing insurance is one of the most important every day decisions that South Africans face.

This makes the life of the broker or financial advisor interesting in that they need to keep up to date with all of their products as well as establish new unique selling points which will attract the public’s attention.

There are a number of questions which the consumer will be asking prior to purchasing a particular product or service. Before you are able to answer these questions effectively you will need to undertake a certain level of due diligence in order to make sure that you provide your client with the best possible service.

Wisen Up

The industry is full of technical jargon and it can often be confusing when selecting appropriate insurance. However, because of the internet, the public is wisening up to this and industry participants cannot use this as a shield.

As a unique selling point, offer product comparisons or details about the insurers track record when it comes to industry coverage.

Essential Questions to Ask

Here are some of the key questions which the public will ask you before settling on a product:

- Who am I buying from?

Provide your client with as much information as possible and keep them up to date with the differences of going with one insurer over the other. Clients need to know that they are dealing with a credible insurer with a good track record when it comes to claims and client service.

- How is my need determined?

As a broker/ financial advisor, you will need to tell you client how much life insurance they will need and that these needs depend on two factors: how much they will need to pay off your debts in the event of death, and how much their dependents will need to maintain the same lifestyle.

- How will the life insurance policy work?

Because insurance can often times be a intricate matter, this question will most likely be the most common. As an industry participant, you need to explain that a life insurance policy can be owned by the individual whose life is being insured, or by another party.

Editor’s Thoughts:
There are obviously many more questions which could be asked. However, if these basic set of questions can be answered in the best possible way then you will be able to offer the best serviced to your client. Open communication with clients where the above questions are answered in detail. Are there other approaches which we haven’t considered? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughtsjonathan@fanews.co.za.