We tend to turn to professionals when it comes to needing advice with important things in life, such as doctors, dentists, accountants and the like. However a lot of us can be reluctant when it comes to seeking financial advice. People only use an independent financial advisor, or IFA, when they need something, and don’t generally ask for their advice or expertise beforehand.

In case you don’t already know, an independent financial advisor is someone who can advise you on financial issues but works independently of all financial organizations and institutions. They are employed by you, the customer. Although they often work on commission, this does not affect the advice they give you as they are obliged to give you the best advice for your particular situation. Furthermore, they must provide the justification for their advice in writing so that you can see and prove why it is that they have advised you in the way that they have. Inappropriate advice is very hard to give when it has to be documented in this way.

So what exactly can these independent financial advisors offer? Well, they can offer almost all financial products on the market such as life insurance, pensions, savings plans, investments and of course mortgages. Some advisors have additional services such as inheritance tax planning and will writing services.

It has to be said that all these products and services can be found in most high streets so why are financial advisors better? Financial advisors don’t just sell products, you don’t walk into one of their offices and ask for life insurance. You generally walk in and ask them to advise whether or not you need life insurance and it is that reason alone that makes independent financial advisers different from all the other retails outlets of financial products.

A financial advisers process will involve sitting down with you for a couple of hours going through all the things you currently have such as the policies that you already pay into. They will asses your attitude to risk which means they will establish how much risk you are prepared to associate with particular areas or you financial planning. They will also establish what you can afford and how much money you are prepared to commit to dealing with any particular need you may have.

They will also ask what you are planning for exactly. Do you want to pay your mortgage off early, do you want to retire at a certain age, do you want to protect yourself against the possibility of illness in the future? Important factors to consider.

By doing this they can build a personal profile of where you are and where you would like to be financially. Armed with this information they can then go and find the products on the market that will be of best value and benefit for you and your budget.

They will then arrange to sit down with you again and look at each of their proposals. You can then decide which option you are happiest with, at which stage the financial adviser can then proceed with the applications on your behalf.

Now with an ordinary financial adviser this would usually be the end of the process. The difference with an IFA is that they view it as being an ongoing process. This means that they will maintain contact with you in order to ensure that the plan is constantly working for you to the best financial ends. Remember that your situation will almost never remain constant and the role of an IFA will be to give you advice with regards to your plan and your changing situation.

So it can be seen that the role of an Independent Financial Adviser is one that is vitally important with your regards to your financial well being. They assess where you are financially, structure a plan to best suit your needs, source the products that best suit you financially, and are on hand in the future if you need to reevaluate your position due to changes in circumstances both personally and in general. You have to agree that this is the sort of professional advice that is well worth seeking out.

What is important is for you to be properly conversant with the policy and its implications before even talking with the brokers whose motives and enthusiasm is sometimes driven by sales. This policy pays out a specified lump sum to your dependents on your death, money that they can use and/or invest following the loss of  income.

Most people will be able to benefit from life insurance. It supports its beneficiaries financially and brings peace of mind to the policy holder. Here are a few reasons for why you need to get life insurance.

The most obvious part of life insurance is that in the event of your death, it will help to provide for your family. It works as simply as this: because you have been paying your monthly premiums, the company that holds your insurance policy will agree to pay a specified lump sum of cash to the beneficiary listed on your policy (this is the person or people you designate to receive the death benefits).

It is important to remember that with this policy, no restrictions are placed up your beneficiaries as to how they utilize the money. Your beneficiaries can decide if it will be used to alleviate debt, purchase their home, or even attend college. The amount they receive will vary depending upon the type and coverage you purchase.

In some cases, the payout is used to pay off specific debt. Because debt can be a large part of our financial picture, many people choose to link their largest debt obligations to a decreasing term insurance policy. For example, if you choose to cover your home loan with decreasing term cover, your premiums for this cover will decrease as you make your loan installment payments. If you die before the loan is paid in full, the insurance company will pay the balance of the loan directly to the bank.

If you would like your insurance death benefit to pay more than just enough to settle outstanding deaths, whole life insurance may be a viable option. Here, premium payments are made in the course of your life. Plans are available where you to pay a level amount throughout, or pay higher premiums at the start of the policy. Depending on the plan, payments cease stop at age 60, 65 or 85 but coverage will still continue. In the event of your death, the insurance company will pay out a benefit to your chosen beneficiaries. The benefit does not depend on how long you have actually held the policy.

If you are HIV-positive, South Africa is one of only two countries that offer life insurance cover for people with HIV/AIDS. Your premiums may be somewhat higher, and your insurance provider will require you to maintain antiretroviral treatment.

Make sure that you deal with reputable and dependable companies that are known to honor their payout agreements. Most experts recommend checking with more than four companies to find out about the different options and plans in the market.

Bear in mind that a life insurance policy may be the only protection your family has from financial hardship in the event if an unexpected death. The peace of mind coming from the knowledge that your family will be provided for more than offsets any inconvenience you may experience now.