Why is an insurance “warrant of fitness” review essential?
No one questions the merit in undertaking a periodic warrant of fitness check on our car. Yet, why is it that so many of us don’t think about having a similar “warrant of fitness” review of our personal insurances? It’s a fact that, over time, one’s personal situation, risk exposures and family protection needs can change dramatically.
Talking about insurance reviews
This was highlighted in a recent conversation I had with “Bob” who is in his early 40s. It went something like this:
Theo: Great to hear that you’ve already got some personal insurances in place, Bob. Have you recently reviewed these to make sure they suit your present needs?
Bob: Nah… no need for a review. I’m happy with what I’ve got!
Theo: When did you put your insurances in place?
Bob: About 5 years ago.
Theo: Ok, what’s changed in your life over the last 5 years?
Bob: Ummm… I got married and now have two kids (2 and 4 years old). Also, I was previously renting and now have a mortgage.
Theo: Do you think the covers you put in place 5 years ago, when you were single, renting and without commitments, provide adequate cover for you and your young family – especially now that you are the sole income earner?
Bob: Ummm, no… I see your point. I think we need to do an insurance review!
After we completed the exercise, Bob was very happy with the scope and quality of the new insurances put in place, as well as the competitive cost. He is now sold on the concept of a periodic “warrant of fitness” insurance review.
It is important that any insurance protection plan is both manageable and sustainable, in terms of premium cost. All insurance companies have their specific “sweet spots” – it’s the insurance advisor’s job to find the best “sweet spot” for you, in terms of the type, quality, and level of cover, as well as cost.
It’s what I do!