Sep 10 2008
Insurance products strongly recommended
Putting to rest all speculations regarding the safety and need of adding an insurance product in one’s investment portfolio, most of the financial advisers questioned declared that they have been strongly recommending the addition of insurance products to their clients. This indicates a turn towards a more planned approach being adopted by clients towards their portfolio’s rather than the aggressive stance on asset management maintained till now. With wealth managers having the obligation to look at things other than simple investments these insurance products are a good tool in their hands to try out diversification in the client’s portfolios.
Insurance and particularly long term insurance is now finding place in the advisers recommended list much more frequently. The top reasons cited by individuals who have been shying away from including insurance in their portfolio’s are the cost and decision to ensure oneself. Apart from long term insurance products, annuities are still raked to be the favorite insurance product amongst advisers. The total percentage of advisers who have started advising long term universal life insurance products has also moved up from what they were some years ago. The reason cited for these universal life insurance products being not so popular is the fact that most of the prospective buyers already posses a life insurance policy and are now searching and looking out for products which are income generating in nature.
The feature of a guaranteed income tagged along with annuities is what is still making them the hot favourites in the insurance market. Amongst all the features that one possibly scrutinizes before taking their insurance policy the rating of the company is considered important by the clients. A good rated company directly conveys a sense of safety and security to the customer who has to take the decision of entrusting the company with his money. The next criteria taken up for consideration by the customer is the price factor of the insurance product being sought. Coming next in line is the financial strength of the insurance company. This factor too is important as when one decides to purchase an annuity contract he becomes a part of the company and its integrity during the course of time. Whatever product one chooses at the end it all boils down to the economics attached with it and what the client desires it to be.