Over at goodreturns my latest piece is all about the bittersweet experience of discovering a claim.
This all started when we were touring the country with the FMA, FSCL, and TOWER, and as a result of adviser questions from the floor we got into discussions about what an insurance review should include. Since many clients don't understand their cover several advisers include a number of basic questions to help them determine if there has been a claim event.
It is remarkable how often a cancer, heart procedure, and even injury, will turn up.
Seriously, you would think that a client would consider the insurance. But that's our 'insurance-centric' view of the world. Out there amongst normal folk people can go the whole year through without considering their insurance (although our United States friends may think that surprising) - it's largely a consequence of first line care being provided either by the state, or at one remove being paid for by our Accident Compensation Corporation.
Back to the advice process: it seems clear to me that a good insurance review must include pulling out the existing cover and asking a number of health questions of all the insured people to check in a claim event has occurred.
That should apply whether they are existing clients or new. Discovered claims are real - and think what the choices are:
- a) the client had a claimable event and never finds out - losing out in the process
- b) the client finds out - but not through your help, and they lose confidence in your advice,
- c) you help them to discover the claims, or
- d) you ask a few simple health questions which lends rigour and professionalism to the advice process and no claim is found.
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