What happens if you are underinsured?

Financial Dispute Legal are experienced in helping clients recover compensation from financial advisors who fail to recommend adequate Total and Permanent Disability (TPD) and Income Protection insurance. Claims can manifest in various ways, ultimately leaving clients vulnerable to underinsurance or lack of coverage when they need it most.

One common form of complaint is a failure of the advisor to conduct a thorough needs analysis. Advisors who fail to investigate a client's specific financial situation, including income, expenses, liabilities, and future goals, may recommend inadequate coverage. This oversight can result in clients being underinsured, leaving them financially exposed in the event of disability or income loss.

Another common example is where the advisor recommends a client take out income protection insurance up to 75% of their salary.  But what happens to the remaining 25% of the client’s salary? How should this be addressed if they can no longer return to work?   Advisors may also need to keep their clients informed in changes in insurance products and regulations. Failing to stay informed about policy updates, exclusions, or new offerings can lead to outdated or unsuitable recommendations. Clients may be sold policies that do not adequately meet their needs or are no longer competitive in the market.

A financial advisor provides an important role to make sure their clients receive appropriate advice in the event of an injury or disability.  Leaving a client under insured can have detrimental effects on a clients' financial security over the remainder of their lives.

If you have received a payment under a TPD or Income Protection insurance policy, and you are concerned that you may have been uninsured, contact Financial Dispute Legal to discuss your matter on 1300 433 533 or enquiry@fdlegal.com.au.  We are here to help discuss your circumstances and consider any rights to recover compensation you might have.