Understanding your insurance needs

Think about it, mobile devices have become essential day-to-day gadgets that we can barely make do without. From social networking to gaming and even work, phones have really transformed how we our daily tasks. Whereas some of us are always keen on product announcements and have no qualms buying their phones from online stores, most buyers fast seek pieces of advice from people with the technical know-how in regards to the specifications. Such people can be tech-savvy friends, brand ambassadors or even tech vloggers who would give the requisite information keeping in mind your budget and phone desire.

This begs the question, if we can go to these great miles for the purchase of a phone, why would we not do it for something more critical and fundamental as life insurance cover? From the insurance company, or broker, it is important and ethical to not merely sell the policy but also help the buyer understand the kind of life insurance policy they are buying and what it would mean for them in the long run.

It is high time insurance companies and brokers stopped looking thinking about their projections and started focusing more on the would-be policyholder. The best way to sell a policy is by first looking at the aspiration of the buyer, their current position financially and career-wise after which you can advise on the appropriate product.

Insurance policies are never all-encompassing

A single-life insurance policy can never be used across the board with all customers. Every prospective client comes with their own aspirations, needs and wants, thereby making it only prudent for insurance companies to tailor-make their products to suit every customer’s needs.

Selling an insurance policy should not only be about explaining the returns that one seeks to gain but also taking the buyer through potential risks that may arise. Therefore, financial planning is very key before getting the buyer to sign any documents. This involves considering an individual’s assets, liabilities and investment risk appetite to ensure that you meet their long-term savings and protection aspirations.

Lastly, insurance companies should aid their clients in the pursuit of their long-term financial goals through yearly assessments. This helps in improving individual policies through certain modifications, policy redirection or even switching if need be.