According to new research from the Financial Services Council, New Zealanders who take advice from an adviser have much more confidence in their cover, compared to those who purchase insurance online.
ATTITUDES TO LIFE INSURANCE: KEY FINDINGS
1: Peace of mind is paramount when purchasing insurance
When considering the purchase of life insurance, peace of mind and provision for their families and lifestyle is a key driver. Life insurance provided respondents with security and control, providing choice and freedom and imperative for protecting a family situation.
2: Kiwis are making trade-offs when considering insurance
Trust and confidence are a major part of any sector’s success, and insurance is no different.
The research indicated that there is an ‘unintended’ risk trade off when New Zealanders assess the value of life insurances. The decision-making process includes weighing up the likelihood of an event happening and the likelihood of a successful claim, versus the cost of premiums.
Respondents mentioned that trust could be increased by reducing jargon and writing policies in plain English.
3: Getting advice drives confidence
Kiwis who seek face-to-face advice tend to be more confident that they have the right life insurance products compared with those who purchase online, who are less so.
Respondents using a broker trusted their broker’s expertise as they were chosen after recommendation through word-of-mouth and often quite a stringent selection process. They were perceived as doing the hard work of identifying the best policy and managing individual issues and queries.
In comparison, those who purchased directly from an insurance company found the process harder as they needed to research the different options available to them and weigh up the one best suited to their needs.
4: Those who have claimed are more positive
Those who have gone through a claims process are more positive about insurance than those who haven’t, indicating that perceptions of how insurance companies act is not necessarily the same as reality. Anecdotal word of mouth and media reporting were identified as drivers of a more negative view of the industry in non-claimants, whereas those with experience of a claim held a much more positive view.
5: Claim time is an emotional time
Claim time is also a time to focus on family, so the easier and quicker the claims process is, the more confident respondents who had claimed felt. Most admitted that the process was made more difficult because it was an emotional time and they were dealing with serious illnesses.
Peace of mind is an important reason we buy insurance and getting advice drives confidence. Contact us for a free review of your insurance requirements and use our expertise to protect you and your family.