Property ideal for insurance talk, says Smartline
Buying a property presents an ideal time for clients to consider insurance and estate planning needs as they are more likely to lose their home due to an illness than high interest rates, says Smartline executive director Joe Sirianni.
Sirianni referred to research showing more than three quarters of Australians would contract a serious illness at some stage in their working life, while one in every six men in their forties would die before the age of 65.
Drawing up a Will and taking out insurance are all things investors intend to do 'one day', Sirianni said, but financial advisers should know when to take the opportunity.
"People will take out home and contents insurance to protect their new home, but don't take out insurance to protect their very ability to be able to pay the mortgage that allows them to have that new home," Sirianni said.
"Buying a property and taking on a mortgage is a significant life event with a high level of financial commitment, so it's critical to look at protecting your financial position, so that if anything happens to you, your family can keep their home and manage financially."
He said this was the reason why investors should understand the various types of insurance covers, such as income protection, trauma, total and permanent disability and life.
"It is important to take a holistic approach to your entire financial situation, and this includes ensuring you put appropriate insurances in place to protect you and your family should the worst happen," Sirianni said.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
