Farmers Needing Up-to-date Insurance Cover.

Posted by on Mar 9, 2017 in Dianne's Blog | 286 comments



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Recent experience has showed us that a reluctance to accept on-going service by some clients has come back to bite them. Why do they do it? The clients mentioned are those who are fearful or distrustful of a new planner relationship. Our practice consists of orphan clients and all endeavours to meet have failed, until…….

Unfortunately the until is at a time when they are approaching retirement or focused on it. Farmers, by nature, carry large amounts of debt at times, due to the seasonal nature of their business. Therefore, they carry large insurance policies that become expensive but can’t be done away with. Caught in the middle they call out for help, often too late.

If a insurance cover was written over 10 years ago, new medical evidence will be required. This comes at a time when the farmer has accumulated medical issues and knows that they will cause a problem for them with an insurer, should they have to declare them.

Recently we have had two such cases. When a premium becomes expensive we look at whether the client was given stepped or level premium. Most are stepped. This means that as the client ages and the cover increases the premium increases and does so until the point of ‘too expensive.’ We planners are then given the task of trying to salvage cover and make changes that are not going to include underwriting, a tall ask.

At times there are several policies and the concept of consolidating is considered. However, if that policy is ancient, then consolidation cannot be done. What is the solution? For the client, be more trusting, for the planner, be more diligent in wooing clients to talk. As in any relationship work is required by both sides. As planners we could say rejection is hard to face and we tend to not try so hard. The farmers could say: ” Yeah well we had a bad experience as well!” So neither win if we fail to persist and try again!


This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person.You need to consider your financial situation and needs before making any decisions based on this information. 

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