Advisers should be reviewing their clients’ trauma insurance prior to its renewal date, says Asteron Life, as statistics indicate Australians are letting their insurance lapse before it is required.
Statistics show the average age of cancellation or lapse of trauma insurance is 44, while the average age for a trauma event and subsequent insurance claim is 49, according to an Asteron study.
Asteron Life executive manager Mark Vilo told ifa that advisers should let their clients know when their renewal notice is coming up and organise a review.
“There’s no point going to a client a month after the renewal date or on it... having a pre-emptive strike is a great idea to help advisers pre-position with the client,” he said.
“The good thing about technology these days is that advisers have a whole range of information about their clients that they can access fairly readily and that includes renewal dates.”
One of the reasons insurance contracts lapse is affordability. Mr Vilo suggested in these situations, it is better to reduce a client’s cover rather than remove it entirely.
“Some customers will choose to completely remove essential cover like their trauma insurance. This exposes them to a risk their adviser previously recommended as requiring cover,” he said.
With client education being a key concern, Asteron is finalising an Adviser Support Package, providing advisers with the tools to reinforce the importance of trauma insurance.
The support package includes tools that indicate the average ages of trauma and other major medical events and the impact of being without cover, according to Asteron.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Dec 2018Court lays charges against former Sydney adviserBy Adrian Flores
- 18 Dec 2018ASIC permanently bans Victorian adviserBy Adrian Flores
- 18 Dec 2018Melbourne-based dealer group loses AFSLBy James Mitchell
- 18 Dec 2018AFA appoints new chair of women advocacy bodyBy Sarah Simpkins
- 17 Dec 2018AMP challenged by ASIC on fees for service conductBy Eliot Hastie
- 17 Dec 2018FASEA names provider for adviser examBy Adrian Flores
- view all