1. Why should we pay?
Kate and her husband finally made an appointment to see a financial planner to review their personal insurance cover. Kate has a real phobia about money management believing there will always be enough and the thought of planning for an injury or death in advance horrifies her; hence their delay in getting life cover. Both are aged in their 40s and Kate’s husband, Jake, had an old insurance policy he’d taken out when he was in his late 20s but hadn’t looked at in years. The premiums just disappeared from his account every month. He didn’t even know what the value of the policy was should he die. Sound familiar?
At the end of the meeting with the adviser, Kate and Jake were told that there would be a fee charged to put together a quote for their insurance cover. They were both very shocked. They believed the adviser would get paid via a commission from the insurance provider. Kate was shocked to be quoted over $1400. Jake had abruptly ended the meeting with a “we’ll get back to you” response – obviously with no intention of doing any such thing.