Questions to ask before signing a life or disability policy

You've sat down with a financial advisor who's outlining life and disability cover options. The quotes look reasonable, the illustrations look solid—but you're not sure what questions actually matter. Here's the thing: your instinct to ask before signing is right. The right advisor will welcome scrutiny. A defensive one signals trouble ahead.

Clarity on what you're actually buying

Start with the fundamentals. Ask: "What exactly does this policy cover, and what's explicitly excluded?" This seems obvious, but many people sign without understanding the gaps. A good advisor will walk you through the definition of disability used in the policy—is it inability to do your own job, or any job you're suited for? Those two definitions create vastly different claim outcomes. Push back if the answer is vague.

Next: "How does the insurer define a claim event, and when would they actually deny it?" Listen for specifics. An evasive advisor who says "they pay out on most claims" hasn't done their homework. A solid one will mention pre-existing condition clauses, waiting periods, or exclusions that apply to your situation. Ask them to show you the policy document's definition section—not next week, now.

Then ask: "If I claim, how long does assessment typically take, and what documentation will they need from me?" This matters more than people realise. A disability claim can take weeks to assess. If your advisor can't describe the process or hasn't dealt with claims themselves, that's a red flag. They should know, roughly, whether your insurer is known for prompt settlement or bureaucratic delays.

Check the premium structure too. "Is this premium fixed for the full term, or will it increase?" If it's reviewable, ask by how much historically and whether there's a maximum. An advisor who glosses over reviewable premiums and later you discover your premium doubles is an advisor who cut corners. Get the assumptions in writing: what age and health status are they based on?

The advisor's own stake in the sale

Ask directly: "How are you paid—flat fee, commission, or a mix?" If they hesitate, that's telling. A transparent advisor will name their commission rate upfront. Follow up with: "Does your commission differ depending which insurer I choose, or which product type?" If they're earning significantly more from one product than another, they've got a built-in bias. That doesn't make them dishonest, but it means you need to verify their recommendation independently.

Ask also: "Can you show me quotes from at least three different insurers, or are you restricted to a panel?" If they can only quote one or two insurers, their "independent" label is questionable. A truly independent advisor will have access to multiple providers and will show you the comparison.

Request a written recommendation. "Can you set out in writing why you're recommending this specific product and insurer for my circumstances?" Seeing it on paper forces clarity. If their letter is generic or short on detail, push them to elaborate. A solid recommendation will reference your income, dependents, existing cover, timeline, and why this product meets those needs better than alternatives.

Finally, ask: "What's your complaints process if something goes wrong, and are you covered by an ombudsman?" They should mention the FAIS Ombud or similar. If they don't know, they're not properly regulated.

These questions aren't about being difficult. They're about making sure you understand what you're buying and that your advisor's incentives align with yours. On Strove, verified financial advisors are rated on transparency and client experience, so you can compare how different advisors answer these exact questions before you commit to a conversation.