Thank you to Mark Lynch for this excellent article on life insurance.  I have had the pleasure of running a seminar on Health Wealth and Happiness with Mark and value his opinion highly.  He is truly an adviser who is interested in the best solution for you, with or without a product.  Enjoy…

insutance flowchart hand drawing on blackboard

Life insurance.

Two words that are guaranteed to put you to sleep. It is a product that no-one wants, but most people need. It is an industry dominated by salespeople, because the insurance companies tell us that insurance needs to be sold.

I have a different view. If you are educated about what you are paying for and given clear, professional, unbiased advice, then surely life insurance just becomes another part of your financial plan, albeit one that you never want to use. We insure our houses, but I guarantee you that no-one wants their house to burn down.

In my experience, very few people get good quality advice on an ongoing basis. Even if the initial advice is good, your lives change and too few advisers review their clients, preferring to chase the high new business commissions. Yet those same advisers are paid a service commission each year. If your adviser isn’t at least contacting you annually, then you should be asking questions. And by contact, I don’t mean a form letter that is sent to all clients; I mean a telephone call, followed by a visit, where required.

The value of reviewing clients was brought home to me a few years ago when I met a new client. Click here for Bill’s story:

Bill’s Story

The biggest problem with life insurance is that it gets too expensive as you get older. This is why I’ve devised the Excelins Insurance Reducer, which adjusts your cover levels as you age. I’ve had questions from people as to why I do this, as it reduces the income I receive. There are two reasons for this:

  • It is the right thing to do. I would rather that my clients retain their insurance as long as they need it, but at an affordable level.
  • My business is referral-based. How many people do you think would recommend me to their friends and family if they haven’t seen me for years? Ask yourself if you would recommend your current broker/adviser to your nearest and dearest. If not, why not?

To find out more, have a look at: http://excelins.co.nz/insurance-reduction-plan

Contact Mark Lynch, ph 027 552 6757 or mark@excelins.co.nz

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