Protecting Business, Family & Resources
The unexpected does happen and can dramatically impact business, family and personal situations. If you do not have sufficient personal resources to “self insure” then Insurance is the tool used to manage these risks.
The only certainty is uncertainty.
We insure our homes because if we had to replace them the cost may be greater than our savings and the reason for our savings compromised e.g a future needs like retirement.
While we can seek to protect our investments (Capital) by prudent diversification most people will need to buy protection to replace Human Capital, our ability to earn. For many people this is their greatest asset. Income Protection, Disability and Life Insurance may be appropriate.
Insurance can easily be miss-sold. You may be over insured, or not requiring insurance. You need to be clear what you are paying for and it meets you needs. For most people it is better to separate savings and insurance. Begin by completing a Financial Health Check. This will put your needs into context and the fee will be credited to you if you proceed.
“Insurance is sold not bought”…. true or false?
There is a saying in the insurance industry that “insurance is sold not bought”. Traditionally the insurance agent has persuaded you to buy and is paid a commission for doing so. All purchases have a mark-up to cover sales and the business return. It is challenging to “sell” insurance, when there is not a perceived immediate benefit therefore the agent has to be paid an attractive commission. This cost is a significant portion (around 35%) of the insurance premium.
Strategic Financial Planning Ltd will help you assess the impact a major loss would have on your family and Goals. You will be able to see the level of cover that will be required. You will be in a position to “buy” insurance rather than having it “sold” to you. We believe that you should not have to pay high commissions to reward an intensive sales process. See below how Strategic is remunerated.
Premiums for some insurance types, especially Income Protection, have an excess or “wait period” which can be applied. This can reduce premiums significantly. If the excess or “wait period’ can be covered from an emergency fund then significant savings can be made over time. This is partial self insurance.
Fee Only Insurance.
Strategic arranges a commission free policy for you. We take a fee based on a percentage of the savings.