What is the difference between advised and non-advised sales?
To help you get the best advice when taking out private health insurance, it is good to understand the difference between advised and non-advised sales.
Advised vs non-advised sales
An ‘advised’ sale means that your policy will have been recommended to you by an adviser who has explained why they feel the type of product or policy is best for you after assessing your individual demands and needs.
A ‘non-advised‘ sale means you are given information about the policy. Therefore, the sales agent can’t offer advice on what they feel is best for you.
You can also get international health insurance if you’re going to be overseas for a prolonged period. In addition, you may like to add extra cover so that you can access private cancer, mental health and physiotherapy services.
What makes them different?
As noted from each of their definitions, both advised and non-advised services include explaining the range of products available and policy or product descriptions to help you make a more informed decision. The key difference is the insurance policy recommendation power, but here are other specific differences to keep in mind:
Insurers Policy Options
One of the most notable differences between advised and non-advised firms is that the former has long panels of providers they can present to their clients.
On the other hand, a non-advised sales firm can have the same list for them to be able to execute the sale once the client decides on their own. It will also allow them to learn more about policies and insurers to provide factual and beneficial information.
If you go direct to an insurer to purchase health insurance, be mindful that the sales team could be non-advised and can only give you information about policies they sell.
Process
The non-advised process is shorter than advised sales because the former only provide generic advice to customers regarding getting insurance. It can include answering questions and explaining terms related to insurance, the benefits of getting insurance or coverage, and other similar information.
They won’t be able to answer questions like, “What is the best policy?” or “What do you think should I choose?” Basically, it won’t answer questions that can lead to an answer that sounds like specific advice, an indirect recommendation, or trying to close a sale. However, non-advised companies can seek permission from the FCA if they want to provide individual advice to their client due to a valid reason.
On the contrary, the advised sales process will usually involve the following steps:
- Client need and demand assessment
- Suitable product type recommendation and explanation
- Policy features and benefits advice
- Level of cover, cover type, and discount products selection and explanation
- Policy statements or terms and conditions explanation
Once you’ve chosen the insurer and policy with the help of the advised sales team, they will also assist you when you need to make claims.
Legal Obligations
Generally, an advised sales company has more legal obligations to their clients since their agents were the ones who recommended the policy and insurer. From the process discussed above, they’re expected to explain the policy or insurance contract, coverage, benefits, and potential risks in detail. Thus, if the sales agent claimed that a particular cover is included but actually isn’t, a client can take legal action.
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Advised Sales FAQ's
Using an advised broker allows you to be sure that the health insurance you are purchasing will cover your concerns. The adviser must listen to your needs and offer a suitable option. Meaning no nasty surprises if you need to claim.
At Healthcare Clarity, not only will we tailor your health insurance to meet your needs, but we will also talk you through all the benefits and features and make sure you know exactly what you are buying and why. If you are offered a different policy elsewhere that is better for you, we will tell you to take it, provided it is the best insurance advice for you.
Check your adviser is authorized by the Financial Conduct Authority (FCA), as this will give you additional peace of mind that if you are mis-sold a policy, your adviser can be held accountable.
At Healthcare Clarity, not only will we tailor your health insurance to meet your needs, but we will also talk you through all the benefits and features and make sure you know exactly what you are buying and why. If you are offered a different policy elsewhere that is better for you, we will tell you to take it, provided it is the best advice for you.
