Insurance products are often difficult to understand but critical to building a risk-balanced portfolio. In an exclusive interview with Hubbis, Thomas Young, Head of High Net Worth Business at Generali, discusses how advisors should talk to clients about insurance and what clients should consider when making their decision
When advisors speak to clients about their goals and investment needs, they’re bound to have a conversation about insurance. Thomas Young of Generali believes that discussions about a client’s wealth planning needs highlight the risks they are exposed to, which in turn serves as a good starting point to introduce how insurance products can support them.
Insurance products offer protection to clients by transferring certain risks to the insurer. When advisors explain this to clients and offer it to them in the right context, Young believes that the client will realise the value of the product, instead of feeling like he’s being sold a product that he doesn’t understand, and therefore doesn’t need.
When recommending insurance products to clients, advisors must evaluate a client’s needs thoroughly.
The market has several different kinds of products on offer, and Young believes that clients will only appreciate insurance when they find the right fit, whether its term protection, universal life, or any another product. Similarly, when choosing an insurer, a client must find a broker or advisor who can add value.
When it comes to insurance, Young believes that clients need a certain degree of curiosity to be able to ask the right questions and find the right answers. Like any investment, clients need to do their own due diligence, understand the product and what it does for them, then ask questions.
Clients must understand that it’s a long-term investment and thus, they must make sure that they buy a product that meets their needs. If their needs change over time, clients must understand how the product can be altered, or how they need to ensure that they buy adequate cover to add to their existing product. That’s where advice truly helps clients make the long-term right choice.
Head of High Net Worth Business at Generali
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