Resisting the temptation of cheaper insurances was sound advice
Dick and Margaret have been clients of the firm since 1996, originally working with Rob on building their superannuation for retirement. At that time, Dick had an existing income protection policy which he asked FB Wealth Management to review for him.
Having reviewed Dick’s policy, Tim advised him that while there may be less expensive options available, the particular policy that he held had a lifetime benefit period, a feature which was no longer available in newer style policies. Tim’s advice at the time was to retain this policy, which thankfully Dick did. (This policy was being looked after by another financial firm.)
As Dick got closer to retirement, he again discussed the ever rising premiums with Tim and Rob. Because his job involved a deal of manual labour and exposure to machinery, Dick had to pay a loading on the premiums to cover that increased risk. Again thankfully, we persuaded him that the policy should be retained, especially as they were still building their savings towards retirement.
In 2001, Dick was working on a new highway outside Hughenden when he suffered a terrible accident in which some road machinery actually ran him over. Naturally he was hospitalised for an extended period and his wife, Margaret, was left with the responsibility of dealing with financial matters. Unfortunately, the agent responsible for the policy merely posted out a claim form, with the expectation that Dick and Margaret would somehow know how it should be completed.
Margaret contacted FB Wealth Management to let us know what had occurred. Upon discovering that no real assistance was being offered in relation to the insurance, Tim took it upon himself to assist with the claim. Tim assisted with the claim forms and then gained authority to discuss the claim with the company involved. The insurance company was excellent and commenced to pay Dick’s monthly insured benefit once the appropriate documentation had been provided.
Dick has learned over the years that income protection is very different to ordinary life insurance. Every few months, the insurer must check whether you are still injured or ill. This is understandable, but can still lead to frustrations and stress. Time and again, Tim has intervened on their behalf to ensure the claim remains smooth sailing.
Due to the injury suffered, Dick was no longer able to work in his chosen profession and the income protection policy continues to pay on a monthly basis. Importantly, due to Tim’s original advice, Dick holds a policy that will pay him for the rest of his life. At that time it would have been easy for Tim to have recommended a lower priced policy as Dick was definitely worrying about the cost. Tim’s professionalism in that instance has made a major difference to their quality-of-life.