Why it’s important to get your clients products that will allow them to buy more cover easily in the future

Your clients’ needs change over time – there’s no doubt about that. This is why it’s imperative to get cover that precisely matches their needs when they get their policy and can change with them as those needs change. But can they change their cover when their needs change without having to provide proof that they’re still healthy and having to undergo medical underwriting?

Most insurers don’t allow clients to buy additional cover when their needs change without having to undergo medical underwriting
Many life insurance products prevent clients from buying more cover when their needs change, without having to undergo medical tests. This is important for most clients as their health tends to deteriorate as they get older. As you know, this means that they might not be able to get additional cover because they’re no longer insurable. Their cover could also include exclusions and loadings.

As a financial adviser, it’s imperative that you check that your client’s current cover allows them to quickly and effortlessly make changes to their cover when their needs change. Like adding children to their policies, increasing cover when they get a promotion and have a larger salary to protect, or if they buy a bigger home and need to increase their debt cover.

Some future insurability options have many restrictions
If the client’s cover does allow them to make changes, can they get more cover without onerous requirements and no restrictions? It’s essential to understand when clients can buy more cover – does a life event, like a marriage, need to happen before using it or can they buy more cover at any time? Do they need to give the insurer proof of any or all of these things, or tell them of changes in their circumstances, for example, if their occupation has changed and if they’ve started smoking?
Another important thing to look out for when looking at your clients’ future insurability is whether this feature is built into the policy or if they need to pay an extra premium for it.

There are insurance companies that allow clients to change their cover free of medical underwriting
There are insurance products in the market that allow your clients to change their cover when their needs change, without unnecessary barriers and having to do blood tests. This allows them to benefit from the medical underwriting they underwent when they got their cover and helps guarantee their future insurability.

As affordability is also a big factor when clients are younger, these options enable them to close any insurance gaps they might have. For instance, a client might be underinsured when they first take out their policy because they can’t afford the cover they need at that time. Having a policy that allows them to change their cover when their needs and affordability change will allow this client to increase their cover to the level they need. Best of all, they can do this with a simple email to their financial adviser and without having to do any medical tests as they would with some insurance providers.