Having an insurance claim accepted for a client is one of the most satisfying parts of the job when you’re a financial advisor, particularly when it helps a grieving family. There are many ways financial advisors smooth the claims process for clients and ensure claims are far more likely to be accepted.

Recently, I posted on LinkedIn about handing over a claim cheque to a grieving husband and his children. These days, we rarely see the physical cheque anymore, as funds are usually transferred online. Handing over that physical cheque caused me to reflect on this part of my job as a financial advisor, what it means to my clients and I, and the ways that we, as financial advisors, work to help make this happen.

When it comes to insurance, we don’t always hear the good news side of the story. Insurance isn’t sexy or fun to talk about, particularly Life and Disability insurance, but it is such a vital part of estate planning for families. While no amount of money will bring back this man’s beloved wife (my client) and his children’s precious mother, the claim cheque provides them with more options. The successful payment of this claim could, for example, potentially provide a tax-free or even tax-positive, education funding for her children and grandchildren.

Crucially, it means that they can take the time they need to grieve and begin to heal without unnecessary added financial stress or the emotional upheaval of having to sell a family home and relocate as a result.

My client was a true planner and she really wanted to make sure that her family was looked after properly. She had Life, TPD, Trauma and Salary Continuance with a plan at her work. Now, her family have that security in their greatest time of need.  

 

How financial advisors help ensure claims are successful

Having a financial advisor greatly increases your chances of, firstly, having the right types and level of coverage and ensuring that any claims made are ultimately successful.

Here are some of the ways we do this:

  • We use our knowledge and expertise to construct personalised financial plans that are right for a client’s financial goals and life circumstances.
  • We check in with our clients on a regular basis to re-evaluate their current situation and future goals and plan accordingly, including adjusting insurance coverage or adding covers as needed.
  • As part of our annual review process, we can alert you if you should make a claim that you may not have even realised you were eligible for. For example, were able to alert one of our clients that she was eligible for a Trauma claim. She received a one million dollar payout from the insurer. Read her story here.
  • We act as advisors and educators for our clients. We make sure you know what type of cover you should consider, when and why.
  • We manage the claims process, which can be lengthy and complex, proactively on behalf of our clients. This saves them stress at a difficult time and, crucially, makes sure they avoid common pitfalls that can lead to a claim being rejected.
  • We keep our clients informed every step of the way, so that they are not having to chase the insurer for answers themselves. 

People can be quite cynical about the insurance industry and disbelieving that claims do get paid. But having grown up in an insurance family – with our family business having been running for over 45 years -- and having been a financial advisor myself now for many years, I have seen many positive outcomes like this, which make a tremendous positive difference for people, including during one of the worst times in their life – the loss of a loved one.

This is why we take insurance so seriously as advisors and work so hard to ensure that our clients are appropriately covered should the worst happen.

Getting good financial advice and having adequate insurance is just so important for those you leave behind.

If your family has lost a loved one, Feel the Magic is a not-for-profit that offers support to grieving children, teenagers and families.

 

If you’d like to discuss your insurance needs, the claims profess or any other financial issues, please call us anytime on (02) 8268 2900 for an obligation-free chat.

 

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.