Every year, the number of South Africans without comprehensive insurance risk cover increases, which means fewer South Africans are insuring their lives.

Long-term insurance is an investment that cashes in when uncertainties arise and risks become realities. Your life and physical body enables you to work and earn an income.

Due to a tough economy, financial pressures are increasing, consumers are feeling the pinch and many are walking away from long-term insurance cover. Liberty sees insurance lapses of between 8% and 10% each year, the main reason being affordability.

This is where the true value of a financial adviser comes into play. A financial adviser is able to restructure insurance cover to meet the changing budgetary requirements of the client. This means that clients can maintain a level of insurance cover even when times are tough.

A good financial adviser will take a look at your financial situation and implement a plan to help you cut back expenses so that you can meet your financial goals and objectives.

This needs analyses should include assistance with creating an investment portfolio and adequate risk solutions to address the risks related to income and life stage. These are critical financial decisions that must be addressed to avoid detrimental financial consequences.

People generally don’t want to think about illness or death. Liberty believes that financial advisers need to build a strong relationship with clients so they can provide the right level of advice.

Financial advisers also have a pivotal role to play in helping identify risks that you may not be aware of. This includes new political and economic developments that could add pressure to your budget and investments.

Because there are many insurance products in the market, financial advisers are well informed and knowledgeable enough to steer clients in the right direction. A relationship with an accredited financial adviser is worth your time. They play a pivotal role in helping people manage their money, prepare for life’s challenges and most importantly, achieve their long-term financial goals.

In 2017, Liberty conducted research on the value of a financial adviser that revealed that:

• 73% of consumers that have worked with a financial adviser had greater confidence in terms of their finances,
• 6 out of 10 consumers give their overall experience with intermediaries a top rating, and 
• 64% are more committed to achieving their financial goals as a result of their intermediary,

This article was paid for by Liberty Group SA.