Tips in Choosing Life Insurance Company and Financial Advisor

There was a post that gone viral on social media.

Lagi luma-labas sa feed ko. Nabuhay tuloy ang spirito ng pagiging financial educator ko. πŸ˜…

If you view the original post, there are a lot of people sharing their horror stories during the claim as well.

As a financial educator myself, when I read the list of additional documents asked by the insurance company, I can’t deny that it’s kind of overwhelming, especially for someone who just lost a loved one.

Social media post about insurance claim - explorewithjoy

I’m sure the company and the financial advisor know how to handle this professionally.Β I believe everyone involved was acting in good faith. Hoping they will sort this out the soonest.

Do You Still Need a Life Insurance?

However, for those who are having a second thought about getting life insurance after they read this viral post, my advice to them is don’t let this stop you from getting one.

Life insurance is one of the major financial needs. Take note, I use the word “needs” and not “wants”. It’s a must-have financial product, especially if you’re a breadwinner and just started building wealth for your family.

If you’re still worried about insurance companies going to give a head ache in the future when you process a claim, take note it is better to have some sort of financial protection rather than nothing at all.

Let me give you some unpopular tips in choosing a life insurance company and financial advisor.

Back in 2019, I was lucky enough to sit down and talk to a friend that is a registered financial planner and he gave me some unpopular advice before getting life insurance.

So aside from that common yet important advice like understanding the policy, keeping a copy of your policy, informing your family, starting young and healthy, etc…

Here are some unpopular tips I learned in choosing a life insurance company and financial advisor. Read on!

Remember, these tips are just my personal opinion. If you follow these tips though, it might take some burden and worry away from you (or perhaps from your family) during the claim.

Tips On Choosing a Life Insurance Company and Financial Advisor.

Life Insurance Photo

1. In choosing a financial advisor or insurance agent, Piliin mo ung matagal na sa industry, fully committed or full time

Why? 90% of financial advisors or insurance agents quit in the first 5 years. (Hard Truth) 😁

You don’t want to buy life insurance from someone and then after a few years when you check on them they’re no longer in the industry.

…or worst ibang insurance na binibenta and trying to convince you to switch insurance providers.

I got a friend who work full time as a financial advisor and have been in the industry for more than a decade. He always give reassurance to his clients that when there’s a claim, he will be the one to process it and the beneficiaries will only have to wait for the check.

Sometimes, the financial advisor or insurance agent is your officemate or relatives. Please, don’t buy life insurance from someone just because you can’t say no.

Life insurance is a long-term commitment. So make sure you got it right from the start or at least choose an agent or advisor who can commit long-term.

2. Know the claim statistics of the life insurance company

Claim statistics will give you an idea of the rate of successful claim that company have awarded.

Here’s an example of claim statistics from Aviva and vitality insurance in the UK. 😎

Make sure to look for the official published data by the insurance company and not just mere words coming from the insurance agent or advisor.

In my personal experience, some insurance agents boast about how easy they process claims and how many families they have helped. But always look at the data and don’t just listen to the hype.

3. Look for a good after-sales service and customer support

I don’t make this up but some agents or advisors are only there for sales as most insurance companies impose sales quotas or promotional requirements.

The financial industry was built on trust and sometimes some financial professionals forget that important values.

Choose an insurance company that has good customer support.

Great customer support and after-sales service build trust among its clients. I can’t stress this enough, I believe insurance companies should invest more on its costumer service.

Para kahit hindi available ang financial advisor mo to help you, the company’s customer support can make your life easy.

4. Don’t forget to ask the advisor or agent “instances, when you can’t receive a pay out? When the claim is denied?”

Couple talking to Life insurance agent - Tips in choosing life insurance agent

Instead of asking never-ending questions about what’s covered, and what’s the benefits, ask instead the instances when the insurance company can’t pay you out or the company will deny your claim.

Why? Because sometimes advisors/agents forget about it.

Especially during the presentation where they’re trying to “financially educate” you and close a sale.

…and if the prospective client doesn’t ask for it, they don’t bother mentioning it.

Kaya it’s your responsibility to ask about those information relating to the claim and business statistics.

It’s your money and your future. That’s why you have to gather all information before you commit.

Don’t worry, a good financial advisor or insurance agent will understand and should make sure you got all information you need before making a decision.

So ayan, those are my unpopular tips.

Do you also have unpopular tips before buying insurance? Let me know in the comment below.