4 questions to ask your insurance adviser
Engaging a financial adviser is a great first step to getting your finances under control. Whether you want to protect yourself and your family with life insurance, or you just want to make sure your house, car and contents are covered, here are 4 questions to ask your insurance adviser to help you understand what to expect.
1. How will we work together?
The purpose of an insurance adviser is to simplify the process and help you to understand what you’re covered for, and what you’re not. They are there to listen to your needs, understand how your personal circumstances may change in the future, and recommend the insurance products that may work best for your situation.
The way you’ll work with your adviser may differ, but generally they’ll follow a similar process.
They’ll ask you a range of questions to understand your personal situation and what types of insurance products you may benefit from. They’ll explain why one policy or product is better suited to you than another, and advise on the right combination of insurance products so you’re not doubling up on insurance cover.
Your financial adviser will be there for ongoing support, helping you navigate the insurance claims process, and answer any queries you may have around making changes to your policy where necessary.
2. How do you get paid?
Financial advisers can use a variety of fee structures. Some advisers charge a fee, others charge a commission, or may receive sales-related incentives. Your financial adviser should be happy to discuss this with you, and should provide you with a disclosure statement which has the payment structure all laid out.
3. What are your credentials?
You can ask your financial adviser what qualifications they currently have, or how many years’ experience they have in their field. This will give you an idea of their knowledge and skills when it comes to giving advice.
All financial advisers must now be registered on the Financial Service Providers Register (FSPR), so you can rest-assured that a good financial adviser will be registered and licensed.
4. How do I know what you’re recommending is the best option for me?
Your financial adviser should always put your interests first when recommending the best insurance solution for you.
They should put their recommendations in writing for you, setting out what they’re recommending and why. They should also ask you questions about your current situation, your financial goals, and your risk tolerance where necessary.
Asking them this question will give you great insight into how they conduct their research to find the best insurance products for your situation, and your budget.
Got a question you’d like to ask us?
We’re happy to answer any queries you have, whether they’re from the list above or something else you’d like to know. We’re a team of transparent, straightforward and friendly financial advisers who are here to help you build a better future for yourself and your family.